How to Start Using Decentralised Apps: Your Guide to the World of DApps

Decentralised applications, or DApps, represent a new wave of digital innovation. The main feature of DApps is their decentralised nature: unlike traditional applications, they are not tied to a single server or location. This is achieved through the use of blockchain technology, which allows application data to be distributed across multiple network participants.

How DApps work

DApps, or decentralised applications, are powered by blockchain technology, which enables their decentralised and distributed nature. Here are the main aspects of how DApps work:

1. Blockchain: At the heart of DApps is blockchain, which is a distributed database consisting of blocks of data linked and secured using cryptography. Blockchain can be public (e.g. Ethereum, Bitcoin), private or corporate.

2. Smart Contracts: DApps use smart contracts to automate agreements and transactions between parties without intermediaries. Smart contracts are programmes that run on the blockchain and automatically enforce the terms of an agreement once they are met.

3. Distributed network: Instead of running on centralised servers, DApps operate on a network of distributed nodes. Each node contains a copy of the blockchain, which provides a high degree of fault tolerance and security.

4. User Interface: Despite the complex subsystem, DApps have a user interface similar to traditional applications. It can be a web page or a mobile app that allows users to interact with smart contracts and blockchain functions.

5. Consensus mechanisms: To validate transactions and ensure data consistency on the blockchain, DApps use various consensus mechanisms such as Proof of Work (PoW), Proof of Stake (PoS) or others. These mechanisms help to ensure that all nodes in the network have the same information and that transactions are completed correctly.

6. Tokenisation: Many DApps use tokens or cryptocurrencies to incentivise network members, perform transactions, grant voting rights in the application, or reward various actions. Tokens can either be embedded or come from outside in the form of cryptocurrencies.

7. Autonomy and no central controlling authority: One of the key features of DApps is that they are fully or partially autonomous and have no controlling central authority. This makes them resistant to censorship and external control.

Benefits of DApps

One of the key benefits of DApps is increased security and transparency. Because data and transactions are recorded on the blockchain, they cannot be altered or deleted, making such applications immune to fraud and hacking. In addition, decentralised applications are generally open and available for scrutiny, fostering greater collaboration and innovation.

Another important advantage of DApps is that they are autonomous and have no need for intermediaries. This means that users can interact with each other directly, without having to entrust their data to centralised organisations. This not only increases efficiency, but also reduces costs as there are no commissions to pay to intermediaries.

Disadvantages of DApps

However, despite their advantages, DApps have their disadvantages. These include difficulties in development and use, as well as scalability, as current blockchain technologies cannot yet always handle large numbers of transactions quickly and efficiently.

Examples of applications of DApps

Decentralised applications (DApps) are finding use in various fields due to their unique properties such as security, transparency, and lack of centralised control. Here are some examples of their use:

Finance (DeFi — Decentralised Finance)

• Lending and borrowing: Platforms such as Compound or Aave allow users to lend or borrow cryptocurrencies with automatic interest rates.

• Asset exchange: Decentralised exchange platforms (DEX) like Uniswap or SushiSwap provide a way to exchange cryptocurrencies without having to entrust your funds to a centralised exchange.

• Stable Coins: The creation and use of stable coins, such as DAI, that are stabilised relative to other currencies or assets.

Games

• Collectible and strategy games: Games like CryptoKitties, where users can buy, sell, breed and collect virtual kitties, each of which is unique and cannot be duplicated.

• Rewards-based gaming platforms: Games where players can earn real cryptocurrency rewards or in-game assets that have value outside the game world.

Social media and content

• Decentralised social media: Platforms like Steemit or Voice that reward users for creating content and curating content.

• Content publishing and ownership platforms: Projects that allow authors to own their content and directly generate revenue from its distribution, e.g. through tokenised assets.

Identification and verification

• Digital Identity Management: Applications that allow users to control their personal data and credentials, such as uPort or Civic.

• Decentralised Domain Names: Systems like Ethereum Name Service (ENS) that allow users to register and manage domains without a central registrar.

Labour market and freelancing

• Decentralised platforms for freelancers: Platforms such as Ethlance where employers and freelancers can meet, contract and make payments without intermediaries.

Voting and governance

• Decentralised voting systems: Applications that ensure the transparency and authenticity of voting, such as Aragon or DAOstack.

• Project and organisation management: Platforms that allow participants to collectively manage resources and make decisions, such as DAOs (Decentralised Autonomous Organisations).

These examples demonstrate the wide range of opportunities that are available through the development and use of decentralised applications. As blockchain technology grows and the number of participants in this ecosystem increases, we can expect to see even more innovative and diverse DApps.

How to connect to DApps

To use decentralised applications (DApps), you need to follow a few steps to set up and connect. Here is the general process:

1. Select the Suitable Blockchain

Explore Blockchains: Different DApps are built on different blockchains such as Ethereum, Binance Smart Chain, Polygon, etc. Choose a DApp you are interested in and find out which blockchain it runs on.

2. Create a Cryptocurrency Wallet

Choose a wallet: To interact with DApps, you will need a cryptocurrency wallet that supports the chosen blockchain. For example, MetaMask, Trust Wallet and other wallets are popular for Ethereum.

Install and configure: Download and install the selected wallet. Create a new wallet or import an existing one by following the app's instructions.

3. Connecting to a DApp

Visit the website of the DApp: Go to the official website of the DApp you are interested in.

Connect Wallet: On the DApp website, find and select the option to connect a wallet (“Connect Wallet” or similar). You will be prompted to select a wallet from the list of supported wallets. Select the one you are using and confirm the connection in the wallet itself.

Ensure security: Make sure you are using the official DApp website and that your connection is secure. Pay attention to your wallet alerts.

4. Transfer of Funds

Funding your wallet: If you need certain tokens or cryptocurrency to use the DApp, fund your wallet with the appropriate assets. This may require purchasing the cryptocurrency from an exchange and transferring it to your wallet.

Gas and transactions: Be aware that transactions on the blockchain are usually charged a fee in the form of “gas”. Make sure you have enough funds to pay for gas.

5. Using the DApp

Explore the functionality: Once connected, explore what features the DApp provides. This can include sharing assets, voting, playing games, betting, and more.

Security and Risks: Remember that interacting with DApps carries risks related to smart contract security, cryptocurrency volatility, and others. Always do your own research (DYOR) before using a new DApp.

6. Transaction Tracking

Use blockchain explorers: With blockchain explorers like Etherscan for Ethereum, you can track the status of your transactions, wallet balance and transaction history.

Important Notes

Security: Always be wary of phishing sites and fraudulent wallets. Use only reliable and trusted resources.

Wallet compatibility: Make sure your wallet is suitable for the DApp you want to interact with. Not all wallets are compatible with all DApps.

Key security: Be careful to keep your wallet keys and do not give them to anyone else.

By following these steps, you can start using various decentralised applications and explore the world of blockchain technology.

In conclusion, DApps open new horizons in the use and development of digital technologies. They offer unique opportunities to create more secure, transparent and efficient applications. Despite current challenges and limitations, as blockchain technologies evolve and developers become more competent, we can expect to see rapid growth and proliferation of decentralised applications.