Amid the global crisis like COVID-19, industry experts believe that the cryptocurrency and blockchain development space will gain significant traction. Both concepts have changed the way we see financial transactions and do business. In the last decade, they have given birth to a range of new buzzwords. One of the buzzwords popular among the blockchain community that we will explore is decentralized applications (dApps). For the uninitiated, the guide will serve as a coherent article explaining the importance of dApp development and its workings.
Decentralized Applications | Decoding Decentralization
Decentralized means that no central authority controls owns, or manages an application. However, decentralization not only empowers digital currencies but also can be applied to diverse business applications.
Let’s understand the concept of decentralization with a simple example. When you use fiat money to buy anything, essentially you contribute to a centralized system. It is because a buyer or seller does not control the flow of fiat currency. That role is reserved for the central bank of your country. Put simply, centralized systems are prone to inefficiencies, complexity, errors, and hacks.
Digital money like Ether, XLM, etc. challenge the idea of centralization by providing a decentralized currency system. Being decentralized means that no centralized bank or government can control the use of currency. Instead, it is the users that have control over their digital money with a decentralized system. Now, let’s understand the role of blockchain smart contract solutions in the decentralized application world.
Decentralized App Development with Blockchain
A few popular blockchain platforms for dApp development are Ethereum, EOS, Corda, Credits, and more. However, Ethereum remains the frontrunner in dApp development due to its smart contract functionality and other blockchain characteristics.
Ethereum Blockchain dApp Development
Ethereum blockchain application development is most suitable for decentralized applications due to its provision for ‘smart’ smart contracts solutions. Computer-generated Ethereum smart contracts are business terms that operate without any censorship, downtime, fraud or third-party intermediaries.