Decentralized Application DApp In Cryptocurrencies
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- Open Source – The source code is intentionally made available to the public, meaning that anyone is able to verify, use, copy, and modify the code.
- Decentralized – Since DApps run on blockchain networks, they are not controlled by a single entity or authority. Instead, they are maintained by multiple users (or nodes).
- Cryptographically secure – The application is protected by cryptography, meaning that all the data is recorded and maintained in a public blockchain. There is no single point of failure.
There are multiple issues in legacy applications that the DApps try to solve. The main benefit of choosing a DApp over a traditional app is that the latter uses a centralized architecture by storing their data on servers controlled by a single entity. This means they have a single point of failure, which is susceptible to technical problems and malicious attacks.
A compromised centralized server may take down the entire network of the application, making it temporarily or permanently unusable. Other than that, centralized systems suffer from data leakage or theft quite often, putting the companies and individual users at risk.
Summing up, DApps are designed as open-source projects that run on top of a blockchain network. In turn, the distributed nature of these networks provides transparency, decentralization, and resistance to attacks.