What is Decentralized Application (DApp)? | CryptoWallet.com

What is Decentralized Application (DApp)?

Decentralized applications (DApps) are applications that run on distributed networks, such as a P2P network or a blockchain like Ethereum. They differ from centralized applications which rely on the traditional client-server network model. DApps uses a network of computers (nodes) who are all equal participants in maintaining the network and authorizing any changes in it.

DApps are open-sourced. Hence, its source code is available to everyone to view, modify, or distribute it by its copyright license, They must also be stored on a public distributed ledger (such as a blockchain), and they must use a token system like Ether to reward contributions to the DApp. Also, they need to incentivize mining to keep the distributed ledger running.

Features of decentralized applications

  • Transparency 

Anyone can view the core code of a decentralized application and see all the transactions that occur in the DApp.

  • Immutability

It’s impossible to edit, delete, or update any decentralized application’s code or transactions. Transactions are kept as part of the blockchain’s history. If a decentralized application needs to be updated, the developers generally build and release an entirely new version. But the old version remains accessible to users.

  • Ownership

Decentralized applications store assets on the blockchain as tokens. Users are able to link their private wallets to the dApps so their assets can interact with the app, but they have control over their assets and aren’t required to trust a third party.

How dApps Are Changing Gambling

Experts have proposed that blockchain platforms will change many areas, and DApps will revolutionize the gambling industry. They have this potential because blockchain provides a high level of security and reliability due to its decentralized technology, which the gambling industry lacks.

At this point in time, there are four main blockchains that are decentralizing the casino industry: Ethereum, EOS, IOST and TRON. According to statistics, around 70% of total traffic on EOS is the result of cryptocurrency betting, while over 95% of the activity on the TRON network is related to gambling. These numbers show that blockchain really does focus on improving the gambling industry.