As explained previously in our blog post Why Web3 Is The Future Of The Internet, dapps are decentralised apps that run on a blockchain network. A blockchain records information in a way that makes it difficult or impossible to change, hack or cheat the system. A dapp does not have central authority. Instead it simply connects the participants of the networks. Let’s look deeper into how a dapp works and how they will evolve in the future of web3.
How does a dapp work?
Let’s start with the basics of how a dapp works. A dapp operates autonomously and let’s the participants of the network make transactions with each other. Traditionally this is done by using smart contracts (contracts written in code). There is no central authority, which also means that dapps do not have a central point of failure. An individual or organisation cannot control it and no single entity can take down the network.
Ultimately a dapp gives back control to the participants with benefits including safeguarding, censorship and user privacy. There are also hybrid dapps where most of the data is stored on the blockchain and they also utilise some centralised servers where certain functions cannot yet be decentralised.
Where did dapps come from?
Ethereum (ETH) was the first cryptocurrency built on it’s own blockchain which allows dapps to run on the network. Paving the path and setting the bar high, Vitalik Buterin and his team proposed ETH back in 2013 with ambitions to leverage blockchain technology. It was long desired to create a financial system that would overcome challenges such as centralisation and lack of security. However, the Ethereum blockchain network has evolved greatly since then and has surpassed way further than simple financial transactions.
The downside is that the Ethereum gas fees are extraordinarily high which is concerning for ETH users. Gas fees are payments made by users for the computing energy that is required to process and validate transactions on the blockchain. For example if you want to buy an NFT on Opensea (a dapp that runs on the Ethereum blockchain) you would need to pay gas fees for the transaction on top of the original NFT price.
Buterin helped bring about the blockchain revolution. His technical background and skills facilitated him building the Ethereum platform. The creation allowed ventures to be built on blockchain with its unique scripting language, Smart Contracts. He opened the economic doors for many others to build with blockchain technology, which has lead to thousands of dapps being built. OpenSea, Uniswap, MetaMask Swap and LooksRare are some well established dapps to mention. However, there are many new dapps being built on alternative blockchains. DeSo, Solana, Cardano and Avalanche are a few to name which are offering drastically cheaper gas fees.
What are dapps good for?
Dapps are being built in a huge range of categories such as DeFi (decentralised finance), gaming, NFTs and social media. The NFT space really started to rocket in 2021 with marketplace’s booming with transactions. Jimmy Fallon and Paris Hilton recently compared their Bored Ape Yacht Club NFTs on The Tonight Show. NFTs are becoming mainstream and as a result they are becoming more accessible to the masses. Read our blog post What’s An NFT And Why Are They Worth Millions? to learn more.
In fact if you’re looking for the next big social dapp look no further! Stori is a social dapp built on the DeSo blockchain for the web3 creator economy. Stori allows you to build your influence and earn money from sharing your stories. From entertainment, education and inspiration to whatever drives you; with Stori, you can monetise it and own all of the rights. Unlike traditional social media companies who own all of the content. Stori also has a NFT marketplace which allows users to mint their own creations such as filters, stickers, templates and Storis. Click here to learn more about Stori and how you can join the share2earn revolution.