DApp Meaning – What are DApps in Cryptocurrency?

A guide on decentralized applications

DApp stands for decentralized application. They are digital applications that offer decentralized services, where no third party is required.

DApps were successfully implemented in cryptocurrencies with the Ethereum blockchain.

There are a lot of different DApps. Some are used for decentralized financial services (DeFi), some are used for gaming, exchanging, voting, compiling data, voting, etc. 

The integration of DApps in cryptocurrencies has revolutionized the world of cryptocurrencies.

DApps On The Ethereum Network 

So how were decentralized applications initially integrated into cryptocurrencies?

Bitcoin as the first successful cryptocurrency only offers decentralized transactions. But if transactions could become decentralized, so could many other digital services.

The idea for this kind of decentralization could have come even before Bitcoin, but it was Russian programmer Vitalik Buterin the one who made the idea possible. Together with Gavin Wood, Vitalik Buterin launched the Ethereum Network in 2015. Thus, Ethereum became the first cryptocurrency that offered various decentralized services on its blockchain through DApps.

These DApps interact with smart contracts in order to operate without a central authority. These smart contracts are sets of codes that determine how each service is going to run.

Decentralized applications have changed the world of cryptocurrencies for the better. With the creation of Ethereum, many other cryptocurrencies emerged with similar blockchains that allowed people to launch and run DApps.

According to Coindesk, as of 2021, there are around 3000 DApps running on the Ethereum network.

Trending decentralized applications. Source: Dappradar.com

All these DApps differ in features and functions. Let’s look at some of these different types of DApps.

What are the Types  Of Decentralized Applications?

  • Gaming

There are a lot of decentralized applications that offer games that reward the user with various tokens while playing. For instance, Alien Worlds, Upland, Axie Infinity, etc.

  • DeFi

One of the biggest use of DApps is running decentralized financial services without the need for banks. Some examples are Pancake Swap, Value DeFi, Venus, etc.

  • Gambling

Another type of decentralized application is gambling DApps. These DApps offer casino and gambling services with much lower earning cuts. For example, Serious Dice, BLINK, Earnbet, etc.

  • Exchanges

Exchange DApps offer decentralized exchanges without additional fees (only gas fees). Some examples are UniSwap, SushiSwap, TTSwap, etc.

  • Collectibles

These DApps allow users to collect moments, pictures, videos, that can be later traded in exchange for tokens. A relevant example would be NBA TopShot, which allows users to collect basketball highlights and then trade them with each other

  • Social

These DApps offer services just like any other social media but are decentralized. Some examples are Steemit, Yup, Hive Blog, etc.

Takeaways

  • DApps are digitalized applications that offer decentralized services.
  • Some are used for decentralized financial services (DeFi), some are used for gaming, exchanging, voting, compiling data, voting, etc. 
  • Ethereum became the first cryptocurrency that offered various decentralized services on its blockchain through DApps.
  • There are around 3000 DApps running on the Ethereum network today.
  • Some trending decentralized applications are NBA Topshot, Alien Worlds, PancakeSwap, UniSwap, AtmoicAssets, Upland, AtomicMarket, etc. 

 

What’s your Reaction?
+1
0
+1
0
+1
0

Recent Articles

spot_img

Related Stories