Decentralized Applications, or dApps, are those applications used for specific tasks and run on decentralized networks such as Ethereum, Solana, and Cardano.
They run on the virtual machines of these blockchains. A virtual machine is a computer that does not have any hardware but runs as a complete computer by pulling resources from others.
The benefit of this is that decentralized apps cannot be shut down by switching off a server or even a node. This helps applications develop censorship resistance and independence from centralized systems, prevent single-point failure, and achieve higher security than centralized applications.
How do Decentralized Applications Work?
Operations
Decentralized Applications operate on blockchain virtual machines like EVM. A virtual machine pulls resources from existing validator computers and powers its own system. The dApps then use this as a platform to operate.
The system has been designed so that even if a few validator computers go down, the virtual machine will still keep running. This is because, at any given point in time, only a few processes are allocated to each validator out of hundreds or thousands of processes needed to run it.
Data Storage
dApps store their data on Decentralized Physical Infrastructure Networks (DePINs) like the IPFS, which itself runs in a decentralized manner. This way, they can easily retrieve data easily without suffering as many failures as ordinary servers.
Network Access for Users
Users can access a dApp by visiting its website.
However, this remains a single point of failure. In the past, the Shibarium blockchain saw a halt in activity during its launch because its website, which was on centralized servers crashed.
Smart Contracts
Decentralized Applications rely on Smart Contracts to execute the necessary blockchain transactions. Smart contracts act as automated, transparent, and immutable agents that ensure all processes take place fairly.
Features
Deterministic
dApps will do the jobs assigned to them and since they rely on decentralized infrastructure to work, they do have a very low failure rate.
Decentralized
The core principle behind dApps is decentralization, which prevents two things:
- Reliance on centralized infrastructure like corporate servers
- Survival at the mercy of centralized authorities like local governments
Turing Complete
Turing Complete refers to a system’s capability to perform any computation that can be described algorithmically, given enough time and resources. A Turing-complete DApp platform, like Ethereum, supports complex smart contracts and enables developers to create diverse applications with conditional logic, loops, and complex data handling.
Isolated
Each dApp’s code is isolated from others in the network. This is done to prevent bugs or bad code from one dApp to pose security threats to others.
Pros and Cons
Pros
Data Integrity
dApps can ensure higher data integrity because even if some data on a node is corrupt, other nodes can easily supply that data to the dApp.
This is true even if there is an attack on the dApp from one node. Other nodes can easily identify the malicious node, and it can be penalized and eliminated from the network.
Failure Resistance
Since dApps rely on several computers to run, they hardly fail. Their decentralized nature stops them from relying on any single point of failure.
Flexibility of Operation
dApps have modularity and composability, enabling them to seamlessly interact and integrate with other decentralized services (like lending and exchanges) to create versatile, interconnected functions.
Additionally, their open-source and permissionless nature allows anyone to use or build on top of them, encouraging innovation and expanding potential use cases without central restrictions.
Privacy
As most blockchains do not ask for personal information and work in anonymity, dApps too value user privacy and do not need any personal identification.
This is the reason why using a dApp like Uniswap is way much safer than using a centralized one.
Democratized Access
dApps do not have qualified access like centralized exchanges which need a lot of information to onboard you and also can ban or freeze your account at any time.
dApps on the other hand do not hold your crypto even while you are using them, they just need to access your wallets for transactions which happen almost instantly.
Cons
Sometimes They are Slow
dApps rely on blockchains and hence must rely on the underlying consensus mechanisms to complete their task. Sometimes, these mechanisms are slow and take time.
Which Platform To Choose
Selecting the right dApp for a particular task can be challenging, especially with so many options available.
Since blockchain interoperability—meaning the ability for different blockchains to connect and work together—is still in its early stages, many dApps remain limited by the constraints of the specific blockchain they’re built on.
This lack of interoperability means users often face restricted access to assets, limited cross-platform functionality, and even higher transaction fees, depending on the blockchain’s capabilities and current network traffic.
As a result, the choice of dApp isn’t just about the app’s features but also involves understanding the blockchain it operates on and any associated limitations. As interoperability improves, though, we can expect more seamless dApp experiences across different blockchains.
