Namaste Yogis. Welcome to the Blockchain & AI Forum, where your blockchain and artificial intelligence technology questions are answered, mostly correct! Here no question is too mundane. As a bonus, a proverb is also included. Roger from New Hampshire wants to know what is a decentralized application (D-App)?
Roger, you came to the right place. Let’s start by first defining app. App is an abbreviation for application. If you say application, you risk being un-cool and might be place in computer lexicon detention! Ha, ha. An app is computer software. Apps can be downloaded on to your computer or phone. The app communicates with the hardware and software on your computer/phone to provide the specific function, think YouTube. Apps are distributed by a central authority across numerous computers, by Apple for instance. Now, D-Apps.
D-Apps are also software but differ from apps in important aspects. For example, D-Apps are executed on decentralized peer-to-peer networks; as noted above, apps are centralized.
D-Apps are governed by smart contracts, whereas, apps are governed by the distributing authority, such as Apple. D-apps make use of smart contracts and the rules contained in smart contracts allow D-Apps to run autonomously, that is not the case with apps. Wait there’s more!
D-Apps are open-source software; apps are closed-source. Linux is an open-source software example. Open-source software is available to everyone for use, modification, and distribution; closed-source apps require permission. D-Apps store their data on a public blockchain for all to examine anytime from anywhere. Excellent. Of course, smart contracts connect D-Apps to the blockchain. Finally, D-Apps use cryptographic tokens and apps don’t.
I assume your next question is, what are the benefits of D-Apps? I’ll give you three benefits. First, D-Apps are fault tolerant. By fault tolerant, I mean D-Apps as a system are more resilient and can operate, if one or more components fail. I like it. Second, because D-Apps are decentralized they are censorship resistant. There is no Big Brother! D-Apps are open source and on a public blockchain, hence they generate confidence because as President Reagan often said, “trust but verify!”
Is there a “test” to determine if a D-App is truly decentralized? The short answer is yes! To assess decentralization, ask these five questions: 1) are all users treated in a fair and equal manner; 2) is the source code open; 3) is the D-App built on top of a decentralized blockchain; 4) key decisions are made by the community; and 5) developers are not exclusively in control of the code.
Let me wrap it up by offering three D-App use cases. First, is the management and transfer of money. Roger, have you transferred money from USA to another country? I have. If you have you understand the expense and complication. Ugly. The fees and hassle are unreal but with a D-App the transfer costs pennies, is painless, and free of intermediaries. D-Apps can also streamline business processes leading to greater efficiencies. Last, via their smart contract, D-Apps can power a decentralized autonomous organization. (DAO) DAO is an organization without hierarchical structure. DAOs are administered, in part, with the assistance of smart contracts. I’ll cover DAOs and smart contracts in greater detail in future editions.
Roger, it’s time to boogie, but not before mentioning that in Yemen there is a proverb that says, “If you give people nuts, you’ll get shells thrown at you.” Hopefully, the few nuts of information I shared today won’t be thrown back at me!
Until next time,
Yogi Nelson
Blockchain & AI Forum 