4 Most Asked Questions About Ethereum’s dApps Answered
Ether has generated more buzz than many other crypto tokens, and not just because it’s one of the most stable investments for crypto speculators.
The blockchain platform that the Ether token is associated with, Ethereum, is committed to using blockchain for more than just transactions. The platform is one of the best for executing smart contracts, protocols that automatically enforce, verify, and facilitate contracts between people and businesses.
This automation stands to save financial institutions millions of dollars and hours. But Ethereum’s latest buzzy innovation is something that everyone, not just banks and brokers, could benefit from. Here are some frequently asked questions about Dapps.
1. Where Does the Name Come From?
A relatively short time ago, no one, at least people outside of tech circles, knew what you were talking about when you mentioned apps.
Bringing up Dapps is likely to generate the same kind of raised eyebrows until they become more common, but the explanation is simple. While “app” is short for application, “Dapp” denotes an app that’s decentralized, meaning all records of its operations are stored on a public blockchain distributed across multiple computers.
2. What Keeps Dapps Running?
Aside from distributed records, another feature that most Dapps will have in common is incentivization. People who use the app and validate the blockchain should be rewarded with tokens, in order to keep it operating smoothly. One early Dapp that’s already demonstrating this is the Decentralized News Network.
Curated by the sites users, articles are fact checked by reviewers who receive tokens in exchange for their labor. Expect to see other Dapps that incentivize people to engage in custodial or content creation activities on the app.
3. Who Codes and Patches Dapps?
In keeping with the decentralized, leaderless ethos of Dapps (and cryptocurrency in general), the coding on Dapps is likely to be mostly crowdsourced, with multiple people working to create the app (possibly with the incentive of earning some tokens).
And decisions about the structure and operations of the Dapp are likely to be made by consensus, as well. It’s also likely that Dapps will be very transparent. The software is likely to be open source, allowing any user to scrutinize the code and suggest beneficial improvements.
4. What Kind of Dapps Will We See in Wide Release First?
Some Dapps that are already close to hitting the web promise to change the way we use our computers and the Internet. Golem is one of the most promising Dapps that’s currently operational. The version that they first introduced, Brass Golem, lets users rent computer processing power from others in order to render CGI art, a processor-intensive task. In essence, Golem lets you pay to use someone else’s computer while they aren’t, or vice versa. Other promising Dapps: Aragon, which aims to use blockchain for organizational management, and Augur, which could become a powerful tool for financial predictions.
Dapps might have a silly name, but the impact they could have on technology is no joke. Be on the lookout for these decentralized applications to start showing up everywhere in years to come.