What are decentralized applications in blockchain technology, how do they work?
A type of software that does not have a hub and works independently of any institution or person is called a decentralized application (DApp). Decentralized software can run on blockchain or peer-to-peer (P2P) networks.
The purpose of developing self-executing DApp systems without anyone's control is to reduce the influence of third parties or institutions on transactions. Unlike traditional applications, this software acts as a bridge between the user and the provider without intermediaries.
Advantages of decentralized applications
Blockchain-based DApp solutions that are not managed or decentralized by a particular authority protect against censorship. The likelihood of transactions being interrupted is very low. Even if some of those with network processing capabilities experience technical problems, transactions can continue through other vendors.
Decentralized applications based on the blockchain directly support cryptocurrencies. No additional transaction fees are charged as each connected user supports the network.
Thanks to its open source structures, developers can implement applications more efficiently by getting mutual support and help. In addition, they are more resistant to cyber attacks than traditional centralized server-based applications. The DApp ecosystem has the potential to improve payment and authentication processes.
The fact that your code is open source and that transactions are recorded in a way that is visible to all creates trust. Since all data is encrypted to ensure network security, although the accuracy of transactions can be verified in decentralized applications, the sensitive information they contain can still be stored securely.
Disadvantages of decentralized applications
While the open source structures of DApp projects are beneficial, they also have drawbacks. Malicious people can attack by exploiting the weaknesses they see in the code that everyone can access.
On the other hand, projects with few users become insecure because the power of DApp networks comes from their users. The more users connected to the network, the greater the security of the network.