Decentralized applications are a new way of cutting out the middleman. They also integrate cryptocurrencies. But will anyone use them?
It’s time to cut out the middleman. Why pay for a company to provide a ride-sharing service when you could use an app that connects you to the riders and doesn’t take a cut?
Dapps, are decentralized apps. They are like normal apps, and offer the same functions, but are run on a peer-to-peer network. This can be a blockchain. The main elements are:
Dapps have several exciting aspects:
They also have some downsides:
State Of The Dapps lists around 2,000 Dapps built on the Ethereum network. However, some of them are abandoned or broken.
The most popular Dapps are decentralized crypto exchanges. These enable people to swap one cryptocurrency for another
DappRadar lists 60 Dapps on EOS, a cryptocurrency focused on fast transactions and micro-transactions.
CryptoKitties is one of the most notorious and used Dapps on Ethereum. It hit the news when high levels of transactions started to slow down the Ethereum network.
In the Dapp, users buy, breed and collect digital cats. These cats represent unique digital tokens built using the Ethereum ERC-721 standard. This means nobody is able to duplicate or steal them.
Read more about CryptoKitties
Did you know?
The most expensive CryptoKitty was sold for $170,000 and the one-millionth CryptoKitty, called Vulcat, was born on September 13.
Can’t help but want to find out? It’s an exit scam. Proud and true.
This exit scam is an Ethereum-based Dapp where users put in a small amount of Ether and the last person to do so wins the pot. Sounds simple right?
Not so. Bots are programmed to automatically bid on the game, theoretically ensuring that it will continue forever. However, someone managed to win it. By making countless transactions with high transaction fees, the hacker clogged up the Ethereum network so the bots couldn’t make their transactions. This meant nobody bidded on the game and the rewards were distributed.
Did you know?
The anonymous hacker who pulled off the exit scam received 10,469 ETH, worth $3 million at the time.
Dapps could take off as the way to interact with services, play games and exchange money. They offer a censorship-resistant environment for developers to get creative. However, this freedom might come back to haunt them if governments decide that they need to crack down on them.
The question is, can they?