What are Decentralized Apps in Blockchain Technology?
Decentralized apps refer to a new software type that is designed to exist on the internet without the control of any single entity. Bitcoin is a form of decentralized exchange. Decentralized apps aim at achieving functionality beyond the transactions that exchange value. As Blockchain technology progresses there is an emergence of decentralized apps.
Many companies are seeing the benefits of these apps not only in monetary transactions but in every computing work imaginable. These apps will represent the next generation of computing technology. The world in which a computer works via peer to peer technology and eliminates the need for a central entity. The future of these apps is promising with most of the features being in their developmental phase.
In order for an app to be considered as a decentralized application, it must meet the following criteria. First, the application must be open source. It must operate autonomously and have no central entity controlling the majority of the token. Any changes in the application must be achieved through consensus.
Secondly, in order to avoid central point failures, data must be stored cryptographically in a blockchain. Also, the application must use tokens for access to the application and as a reward to the network supporters. Lastly, the application should generate tokens as a value algorithm in contributions to the system.
There are many categories of applications but still there is no selected or dominant one. All applications use Bitcoin technology but the variations differentiate them from bitcoins. Decentralized Autonomous Organization (DAO), is a kind of organization that operates without human intervention and does not depend on a central entity of operation.
A DAO is programmed and stored in a blockchain. Its conditions are checked and actions are performed based on the protocol of the network. It forms the basis of decentralized applications. The levels of complexity may depend on the organization. They can be used in representing real-world scenarios such as ownership of property.
Also, A DAO can be organized using a contract which is a set of rules stipulating how it operates. Ethereum has blockchain applications that can support the Turing programming language. It allows developers to create their own decentralized application and go live on Ethereum blockchain.
The first application is on the market and developers are continually working on its applications. Maidsafe provides an ownership proof mechanism. Also, the decentralized data structure allows one to store data publicly or privately in the cloud. The cryptographic abilities enable the files to be stored and retrieved upon request by their owners.
Burst is a system that uses a “proof of capacity” mechanism. It is a hard based mining solution for network owners. It has incorporated automated transactions in its operations. Currently, most of the Decentralized applications are in their developmental phase.
It requires an ambitious developer to take notice of these new opportunities. The incremental pace of the growth of the decentralized application is a proof of the momentum of cryptocurrencies. The technological movement is towards decentralization. The security of blockchain applications leads to the development of the decentralized application.