Probably the first time that most people heard of blockchain technology was with the advent of bitcoin and cryptocurrencies. Bitcoin itself has gone through some dramatic events with the valuation beginning at a minuscule $0.0008 before rising to a high of $63,729.5.
Anyone who had invested just $100 in 2010 and sold eleven years later when that incredible amount was reached could have made hundreds of millions of dollars. Now blockchain technology is being used in what is fast becoming a new phenomenon, NFTs.
Non-fungible tokens are taking up inches in newspaper columns all over the world, as cynics and fans alike revel in the latest news. Just recently a CryptoPunk NFT sold for $11.8 million at Sotheby’s. That auction houses steeped in history such as Sotheby’s are involved in these deals shows how mainstream blockchain is becoming.
One other use of blockchain technology that is emerging, is the use of decentralized applications. dApps as they are also known, are said to have many advantages for businesses, but do they really, and are they necessary, or just another technology fad?
What are decentralized apps?
The first thing to ask is what on earth are dApps? If you are unsure then you aren’t the only one. Decentralized apps might not be strictly new, but they aren’t commonplace either.
A standard application, like the type you might download from the Google Play Store, will have a centralized network or server. The app connects to that server and sends and receives data backward and forward. A dApp would have its backend code stored on a decentralized blockchain, Ethereum.
The design of dApps means that there is no single point of failure, and just as bitcoin mining rewards individuals for their processor power, dApps would provide tokens to their users.
What are the benefits of dApps?
There are many benefits to blockchain technology, including transparency and anonymity. When it comes to dApps, there are potentially many advantages to their use.
Some of the benefits of dApps are as follows:
- Data is more secure
- Apps cannot be blocked
- Data cannot be lost
- More transparency
- Less expensive
- Open source code
- No downtime
When looking at the security side of things, dApps can only be a good thing. There isn’t one single IP address for the app, so they cannot be blocked, and the code cannot be hijacked either.
The higher level of transparency is something that a lot of businesses are interested in, including the casino industry. LIVE BLACKJACK is now available in the world’s first metaverse casino. This particular gaming app uses decentralized governance to manage a number of casinos spread across this metaverse.
Trust can be an issue with online gaming and casinos, and by adopting blockchain, everything becomes much more transparent. Because there are no expensive servers to pay for, there can also be a better return to anyone playing, as the profits are higher.
What about the negatives?
Of course, with anything good, there will also be some bad points. Blockchain technology is clearly not going away, and individuals and businesses are adopting it in more ways than ever.
Cryptocurrency is starting to be accepted in more areas, and there are around 14,000 Bitcoin ATMs in the world. The Ethereum blockchain is powering the advance of NFTs, which appear to be growing in popularity almost by the hour, and now decentralized applications are being looked at seriously by businesses.
Because dApps are in a nascent stage, it is hard to know what their true potential is, but there are a couple of causes for slight concern.
Decentralized apps can be slow, and they can also be found lacking in UX. These types of apps rely on users so that they can run smoothly. Because they are new, the take up on dApps can be slow and this can lead to lag.
The user experience may not match standard apps either as simple things like logging in are more complicated, and any improvements or updates are harder to make.
What is the point of them then?
You have to look back at some of the advantages and unique features of dApps to understand why they exist.
Traditional apps have a centralized server and therefore an address for hackers to hit. Decentralized apps don’t have this and are much more secure.
As far as businesses are concerned, blockchain technology could transform them in many ways. These apps don’t need to ever suffer from downtime. Unless every computer linked to the app goes down, which is extremely unlikely, there need never be any downtime. When a server goes down it costs businesses money, a decentralized blockchain can avoid this.
Servers are not needed, so there is no problem with upscaling. Having scalability is a major plus to businesses, and with dApps, it happens organically. When an app gathers new users, the owner will have to invest in new servers. With dApps, as the users grow, so does the capacity.
What kinds of businesses would use dApps?
Due to the high levels of security and transparency, these apps are likely to appeal to any company that deals in finance.
Both crypto and fiat currencies can be managed through dApps, and sensitive data such as wills and other financial records can be stored with them. They can be used for voting and personal records too.
The gaming industry has certainly taken a shine to blockchain, and there are now many crypto casinos online, and even a land-based one in Cyprus. It is likely that in the future a visit to an online kaszinók to play slots or poker might involve a dApp being used.
Summary
While blockchain technology is now firmly established, especially through Bitcoin and Ephereum, dApps are still very much in the early stages. There will likely be some teething problems, and the interest from the public may take some time.
Whenever there are changes in technology, it takes some time for people to adjust and trust. This might be ironic when it comes to dApps. One of their promises is to provide everyone with more security for sensitive data and financial information when online.