In our daily lives, we use multiple applications to hail a taxi, order food, or shop online by paying the company facilitating this transaction. What if we could cut out the middleman and use an app that directly connects us with the taxi driver or restaurant and saves us the commission or levies a cost-efficient charge? This is just one possibility realised by decentralised applications (dApps) today.
So, what are dApps? They are like standard apps and deliver similar functions but are run on a peer-to-peer network, such as a blockchain. They run on a network of computers instead of a single hosting server and hence cannot be controlled by a single authority.
Let’s understand how they differ from traditional web applications and why they play a pivotal role in the future of Web3.
Web apps vs Decentralised apps (dApps)
Apps like Facebook and Uber run on a computer system owned and operated by an organisation. This entity exerts full authority on the working of the app. So while thousands of users can access the app, the backend is controlled by a single entity.
On the other hand, dApps like Axie marketplace or decentralised exchanges run on computers that are part of a P2P network or blockchain. Multiple computers spread globally run the decentralised applications without any single entity exerting its control.
The most popular use case of dApps is in decentralised finance (DeFi), a monetary protocol that uses a blockchain that allows investors to earn money by participating in liquidity pools, borrowing and lending, among other offerings. Other known dApps include blockchain-based games like CryptoKitties, NFT marketplaces like Opensea, decentralised exchanges like PancakeSwap, and more.
dApps and the Web3 ecosystem
The core of Web3 is its decentralised nature and its determination to replace centralised apps with dApps giving users full ownership of their data. This core idea mirrors the essence of dApps – no censorship, collective ownership among users, and user privacy, among others.
Let’s explore the benefits of decentralised applications:
- Open source: This encourages faster and more secure development of the ecosystem, enabling developers to create dApps with interesting functionalities.
- Censorship resistant: As no single entity or participant on the blockchain has control over the dApps, it’s challenging for any individual or government to control or restrict access to the dApp.
- User privacy: Users don’t need to submit their personal information to use dApps as they use smart contracts to complete a transaction between two anonymous parties.
- No server downtime: As dApps rely on a peer-to-peer network, downtime ceases to be a problem as the blockchain networks run continuously.
Build dApps on the Cudos network
With our highly anticipated Mainnet launch in the coming weeks, the Cudos network will become a dynamic ecosystem encouraging developers to freely build, operate and maintain their dApps on our blockchain.
The Cudos’ architecture is built using Cosmos and is part of an ecosystem of interoperable blockchains thanks to Tendermint’s Inter-blockchain communication protocol. As a result, IBC provides endless opportunities for developers as a dApp created on one blockchain can function automatically on other blockchains built using the same layer.
Cudos provides businesses and developers with a wide spectrum of tools to create Web3 dApps. The Cudos blockchain network empowers developers to build and launch decentralised applications like decentralised marketplaces and exchanges, DeFi platforms, metaverse infrastructure, and any other dApps.
Cudos is powering the metaverse bringing together DeFi, NFTs, and gaming experiences to realise the vision of a decentralised Web3, enabling all users to benefit from the growth of the network. We’re an interoperable, open platform launchpad that will provide the infrastructure required to meet the 1000x higher computing needs for the creation of fully immersive, gamified digital realities. Cudos is a Layer 1 blockchain and Layer 2 community-governed compute network, designed to ensure decentralised, permissionless access to high-performance computing at scale. Our native utility token CUDOS is the lifeblood of our network and offers an attractive annual yield and liquidity for stakers and holders.