dApps (Decentralized Applications) are just like any conventional web application, which utilizes Blockchain to function.
dApps consist of front-end and back-end, where its front-end uses the same technology to represent the page and the back-end while using smart contracts to connect to the blockchain network.
The major difference here is that the traditional apps directly connect through an API to the centralized database. dApps instead of running on a single computer, run on the blockchain technology on the back end to achieve decentralization.
dApps can execute and settle transactions automatically to eliminate the centralized corporation like Meta to act as the mediator. A dApps development company designs dApps in such a way that they are interoperable and interact with each other.
As the lack of interoperability simply kills the idea of a decentralized app and that prevents the dApp from scaling.
Advantages of dApps
- The records stored in dApps are unalterable, as they function over a Blockchain network that protects the application from hacking or intrusions thereby making them tamperproof.
- Any changes made in the applications are decided through consensus of all members in the network as Decentralized Apps are governed through autonomy.
- dApps do not rely on a single centralized server like traditional apps, which makes them immune to the risk of a central point of failure in case of any eventuality.
Why are dApps are so popular?
dApps gel very well with the web 3.0 interface, as both have a greater emphasis on decentralization and leave no stone unturned to address the issues like data breaches.
Further content creators will get a better option from existing centralized profit-sharing models that siphon revenue and royalties away from the creators themselves.
This will again unlock the opportunities for higher earnings and potential for artists and creators who traditionally get the short end of the revenue stick on traditional platforms.
How dApps will be transformed in 2022
As of now, there are more users currently creating on traditional web 2.0 platforms, but according to a report, the leading Ethereum self-custody wallet named MetaMask has 30 million active users.
These users are many of whom opened their wallets during the NFT wave in 2021, but the thing to ponder is those users consist of supporters, fans, collectors, and investors onboarded into crypto and Web3.
Such a huge number of users will surely become a reason to keep building and refining products with creator empowerment in mind.
The role of the Metaverse in shaping dApps is another question that holds a lot of potential around it. dApps backed by Blockchain will see a lot of development in 2022, but it would require the Metaverse infrastructure to integrate blockchain.
Since the Metaverse would involve sensitive information like personal details of users and securing them will be an easy task with the help of the blockchain’s private keys and data encryption.
Some use-cases of dApps
Streaming platforms: Streaming platforms are the places where users earn tokens for doing various activities like uploading music, listening to other artists’ songs, and sharing their favorites with friends.
Audius is such a streaming platform having more than 5 million active users and their users can earn DeFi rewards of 7% by staking their tokens to secure the network.
NFT marketplaces: These are some of the famous and important types of dApps that exist that you must know.
Rarible is an Ethereum-based NFT marketplace that allows creators to upload videos and distributes a certain percentage of royalties from all secondary marketplace sales into wallets chosen by the creator.
Another popular NFT marketplace is OpenSea which has attracted collectors who are more interested in the floor price than the artist.
Social platforms: These are such creator-centric platforms that let fans earn tokens for engaging with and sharing content. These platforms can be a great place particularly for loyal followers, curators, and trendsetters, as it cultivates brand loyalty by rewarding long-time fan.
Future of dApps in a nutshell
The arrival of Metaverse has pushed the support for dApps has risen tremendously, as Metaverse lets users have a richer experience, and dApps offer users and stakeholders an opportunity to be involved with the applications.
The creators out there are already wanting a way to streamline the excessive fees, determine their own royalty structures and maintain agency over their intellectual property and fan base.
New artists would see it as an uphill task to acquire a web 3.0 skill set, but dApps experts at Rejolut already see a growing decentralized creator economy with a special focus on Metaverse.