For a better understanding of what Decentralized Applications are, You’ve got to be familiar with Decentralized Finance On Your Journey, as a DeFi Freak, Decentralized Applications are the Tools to get you going… Reading this Content, would equip you with the knowledge on what Decentralization Applications (DAPPs) are, How they work, their build-up structure and a list of DAPPs with their UseCase.

What are decentralized applications?

Decentralized applications, or rather Dapps are digital applications or programs that run on a blockchain network. These particular applications are built in a P2P network format, making it connected to different computers therefore it is not controlled by one entity.

Decentralized Applications are also programs that are built on Layer-2 blockchains whereby they make use of Smart contracts to aid interactions with their users.

What makes it Decentralized?

In Order to know what makes these particular sets of applications decentralized, its structure would hence be explained.

Here’s an example to understand the structure of Decentralized Applications:

Imagine yourself as an influencer on X(Formerly known as Twitter). You engaged with your followers a few times and unfortunately, you lose access to your account as it is now suspended. This might be a result of not adhering to X’s rules and policy.

How the team at X is able to specifically restrict your account is due to the fact that they have access to the backend on which X’s server lies. Its server is built on an entity to which only the team can have access.

In the case of Decentralized Applications, computers are interconnected such that there’s no central computer that has access to the backend of the Dapp, and this makes the access distributed across all the interconnected computers.

Decentralized Applications can exist in different sectors just the same way centralized applications do. This makes it possible for industries like Game-Fi and even Social-Fi provided that a network is built on a network and facilitates interactions between users and Smart Contracts, there are Dapps., Examples of Dapps include: PancakeSwap, Aave, Compound, and 1 Inch. 

Decentralized Applications have different functions as they can be inform of Web applications, mobile wallets, aggregators, and Protocols.

This gives users the open chance to carry out operations such as lending, borrowing and staking unlike when using traditional/centralized applications.

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