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Everything You Need to Know About Decentralized Applications (dApp)

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29th Jul, 2020
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Everything You Need to Know About Decentralized Applications (dApp)

Decentralized Applications or dApp

If you’ve been keeping up with the recent developments in blockchain, you must’ve heard about

Decentralized Application and wondered,” What is dApp?”

Don’t worry, because, in this article, we’ll discuss what dApps are and how they function. We’ll also discuss the fundamental concepts of this technology and how it can revolutionize the tech sector and many others in the coming years. 

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Let’s get started. 

What is dApp?

dApp is the abbreviation for decentralized applications. 

While centralized applications run on a single system (computer), a decentralized application runs on a P2P network. 

Contrary to popular belief, a dApp doesn’t have to run on a blockchain network necessarily. Popcorn Time, Tor, and BitMessage are some famous examples of dApps that don’t run on the blockchain. 

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The decentralized applications in blockchain depend on the blockchain for managing the actor present in the network. Their core logic is based on smart contracts. Let’s discuss the different aspects of the decentralized applications in blockchain briefly:

  • Interface

The interface or the front-end of decentralized applications is quite similar to web apps. Their front-end technology uses the same technology traditional web apps use. A web application uses HTML, CSS, and JavaScript to create and display a web page, which interacts with a central database that keeps all the app data. 

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Decentralized applications have similar interfaces that primarily depend upon their purpose and uses. 

  • Back-end of dApps

In this section, too, we can look at web apps to see how decentralized apps work in the back-end. Web applications call an API for processing data present on their servers. dApps use wallets which communicate with the blockchain network. The wallet of a decentralized application manages its blockchain address and cryptographic keys, which are the 30 unique points of reference to the use. 

Just like APIs work in web applications, wallets work in decentralized apps. They start functions of smart contracts for the apps which interact with the blockchain. 

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Also Read: Blockchain Developer Salary in India

Importance of Keys in dApps

One of the main highlights of dApps is the security level they offer due to the presence of keys. To access and use a dApp, you must have its private key. These apps store their private keys in wallets that continuously interact with the front-end and back-end applications.

Now that we’ve discussed the basic concept of dApps, we can move onto some other areas related to this topic:

Decentralized Applications in Blockchain

To understand dApps better, we must understand blockchain. Blockchain has data packages called blocks. The purpose of blocks is to hold records, and they connect through cryptographic implementation. Blockchain has a validation system that allows old transactions to remain saved and add new transactions irreversibly. The ledger of blockchain remains present on a distributed network, which is its primary advantage. 

Decentralized applications in blockchain are open-source software solutions that leverage blockchain for its advantages. 

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Read about: Why Blockchain is important?

Ethereum: The Mother of dApps 

Some experts argue that by definition, the first dApp should be bitcoin. However, blockchain development has come a long way after that, and now we have different kinds of dApps present in the market. 

If you’ve read about blockchain and cryptocurrencies, you must’ve heard about Ethereum too. If bitcoin dominates cryptocurrencies, Ethereum dominates the field of dApps. Ethereum’s purpose was to provide an alternative for developing decentralized applications with high security and scalability. 

Developers can use the Ethereum Virtual Machine to create smart contracts. Apart from that, Ethereum has its programming language as well, called Solidity, which empowers developers further.  

To become an expert of dApps, you must get familiar with Ethereum. BAT and Golem are some prominent dApps that work on Ethereum and have more than a million dollars worth of market cap. 

Read: Blockchain applications which are transforming the world

Future Prospects of dApps

dApps are brand-new technology. However, even though it’s relatively new in the market, it is witnessing rapid developments in different sectors. For example, Kyber is a dApp and is an exchange. On the other hand, FCK is a gambling dApp. 

As the industry will get more blockchain developers, we’re bound to see more innovative dApps. Some other popular dApps include ENBank, TGON, PRA CandyBox, and EOS Knights. 

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Another application of dApps is ICOs, Initial Coin Offerings. ICOs are fundraisers to generate token sales and bring together new cryptocurrencies with investors. Companies are implementing blockchain-based solutions in different sectors, and this will increase the popularity of dApps further. 

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Also Read: Blockchain Project Ideas & Topics


We hope you found this article helpful. Decentralized applications in blockchain are revolutionary technology and will quickly become one of the most in-demand solutions among enterprises. You can capitalize on this opportunity by becoming a blockchain professional. Get a blockchain course to learn all the necessary skills for becoming one. 

There is a rise in careers in blockchain technology and blockchain has tremendously changed the very face of the technology industry forever.  If you’re interested to become a blockchain developer and build smart contracts and chain codes, checkout IIIT-B & upGrad’s Advanced certificate program in blockchain technology.


Mayank Sahu

Blog Author
Mayank Sahu is the Program Marketing Manager with upGrad for all emerging technology vertical. His past experience is in analytics industry extensively in healthcare Domain. Mayank has completed his Graduation from IIT Delhi.
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