After the evolution of blockchain and cryptocurrency, we often get to know about the words like decentralized and decentralized applications. People are often confused about them and have doubts like what is a decentralized application and what are their types.
In this article, we will discuss what is a decentralized application. We will also discuss different types of decentralized applications. Further, we will also mention the top 3 decentralized applications.
What is a decentralized application?
In simple words, a decentralized application is an application that runs on a distributed computing system. It is also known as dApp. A decentralized application, instead of running on a single system, runs on a peer to peer network of the system. They have been existing since the innovation of peer to peer networks. These applications don’t require middleware to control them. Anyone can connect to anyone in the network directly. They are open source and are not owned by an individual. Further, they also don’t suffer from the problem of central point failure problem.
Dapps are extremely used in blockchain technology. In distributed ledger technologies, usually known as Ethereum Blockchain technology, these decentralized applications are also called ‘smart contracts’.
Types of decentralized applications?
The decentralized apps have been broadly classified on the basis of their uses. The decentralized applications are basically of three types:
a) The decentralized apps which are involved in managing the money:
These are the decentralized application who mainly focusses on the management of money. They provide the facility to connect with any other user in the distributed network and send/receive the money from them. For connecting to a user in the P2P network, one needs to exchange a token, ‘ether’ to the other user. These applications are basically ‘money apps’.
b) The decentralized apps involved in money as well as other information:
These kinds of application involved other information also apart from money. For example, let say there is an application for vegetable sellers which automatically pays them if the rate of the vegetable is less than the invested amount by them. These decentralized applications depend on money as well as the day to day information outside the network too. Mostly, these kinds of applications are ‘insurance’ type applications.
c) The other decentralized applications:
Those dApps which don’t classify into the above two categories are classified into this category. These applications are dedicated to decentralized autonomous organizations. Usually, they are used for voting and governance systems. These applications can be used to form a leaderless organization where every function of the organization like a person’s voting, releasing funds etc are decided by the program of the app itself.
Top 3 Decentralized applications:
There is a huge list of decentralized applications today. Every application tends to provide extra features to users in order to beat their respective competitors. There are several factors to go for a specific decentralized application such as security, privacy, the field of use, reliability etc. Here we are going to discuss the top 3 decentralized applications :
Blockonix is one of the best-decentralized applications today having the best User Experience. This cryptocurrency exchange is located in Malta and has its headquarters in Birkirkara city of the country. Blocknix works for 24*7 throughout the week. This application was established in the year 2018. The exchange runs on the Ethereum Blockchain and there are salient features which make it one of the top decentralized application today.
Idex is one of the fastest and user-friendly decentralized application. This application has separated the trading machine from the execution which makes it so fast. You can easily trade continuously on this application without worrying about the waiting time for the mining of transactions. This application takes care of various factors like the security of transactions, handling of all funds, ensuring that the fund’s transaction is synchronized etc. This application uses the Ethereum blockchain technology and provides the best user experience to all its users.
ForkDelta is again, one of the top-quality decentralized application. It is the forked version application of decentralized exchange EtherDelta. It has gained popularity at a very fast pace. It acts as an open source application an provide a secure platform to its users. Using this decentralized application, one can easily exchange the ethereum token with another user on this application. The user interface is very simple and friendly. Transactions like deposits and withdrawal are very reliable and synchronized. The high-qualified development team of this application is always keen to provide the best user experience.