DApps (Decentralized Applications) — decentralized applications, are these applications built on the foundation of blockchain. Currently, there is no universal definition of Dapps, but a Dapp usually must meet some of the following requirements:
Must be open-source
The application must operate autonomously without a third party acting as a moderator of information on the platform. DApps must be built on a blockchain platform to record user data and transactions.
This is an important property to distinguish the difference between existing DApps and Centralized Apps, and thanks to this feature, DApps open a new era of freedom for applications on the internet, data is no longer centralized at a server located at big companies like Google, Facebook, Amazon, Tiktok, and others. It’s now evenly distributed on the blockchain system around the world, specifically among the miners in that blockchain system. Therefore, when the network is larger, no one has the right to edit or change the data, the data is encrypted anonymously on the system in an absolutely secure way. No one can know your true identity for research or sell it for advertising purposes, which is what those centralized apps are doing nowadays.
Must have their own token
DApps must have their own tokens so that users can use them in DApps to pay, receive incentives, participate in programs, etc. And these tokens are issued to users in the following ways: when the user achieves the goals set by the app, the token is first distributed when the application starts working. In addition, some DApps also offer exclusive tokens to users.
Flexible protocol
In order to optimize the application based on user feedback, DApps must be able to modify the protocol to match the consensus of the majority of users.
DApps and smart contracts
Smart contracts are an important factor in the functioning of the decentralized applications available today, using a smart contract or using multiple smart contracts. The function of a smart contract is to maintain data on the blockchain system, and the most important feature is to perform transactions on the system, understandably as a third party between the seller and the buyer that will automatically make a transaction when both parties meet all the requirements listed in the created contract.
Nevertheless, It’s still expensive to operate smart contracts today. Due to paying miners when they confirm transactions. This fee is called a gas fee, the amount of the fee is based on the complexity of the smart contract and how long the parties want the transaction to be confirmed, the higher the fee, the faster the transaction will be according to the mechanism and auction regime.
Classify
By blockchain platform
This type of classification is based on whether the DApps have their own blockchain platform
Type 1: DApps have their own blockchain platform. Typical examples are major coins like Bitcoin and Ethereum.
Type 2: DApps are built on the blockchain of type 1. This is a popular and important type of DApps that has emerged in recent times. It requires additional tokens to operate.
Ethereum’s blockchain is the most popular platform among Type 2 DApps, the first Decentralized Application appeared on Ethereum on April 22, 2016, followed by many successful applications built on this platform. Although the gas fee is still quite high, Ethereum is changing day by day to become more optimal for DApps.
Type 3: DApps are built on the basis of type 2 protocols. And it also needs to issue its own token to be able to work on its system.
By function
This classification is very diverse because blockchain has countless uses and is still growing more in other fields, such as exchanges, games, finance, loyalty, gambling, storage, high-risk, wallet, governance, property, social, security, energy, insurance, health,…
Some outstanding DApps applications
Bitcoin is the first DApps application in the financial sector and the biggest name of DApps
Metamask is a popular wallet based on the Ethereum blockchain
Axie Infinity is a blockchain game application on the platform of Ethereum
Rarible a marketplace of NFTs built on the Ethereum blockchain
PancakeSwap is a financial application on the blockchain platform BNB chain
Et cetera.
DApps the new trend of Loyalty Programs
In addition to the popular applications commonly found in the financial and gaming fields, DApps also appeared for the first time in many new fields, most recently, the field of customer service, particularly Loyalty Programs. Starbucks, the world’s leading coffee chain, started this trend by launching its Odyssey app later this year. The application promises to bring an unprecedented experience to customers, thereby bringing countless business opportunities for businesses
Refer to the article WHY DOES STARBUCKS ODYSSEY BECOME THE PROMISING BLOCKCHAIN LOYALTY PROGRAM?
Odyssey is expected to create a hit for blockchain technology — Web3.0 in general and Loyalty Market in particular — if the project’s successful, it will close the gap between users and the blockchain world. This success further strengthens public and investor confidence in the future of internet decentralization.
Besides, the practical applicability of Blockchain Loyalty System is very strong, users directly experience it with their daily shopping behavior, so it will be easy to accept the technology. In addition, the Loyalty System in consumer goods is also a fertile ground to apply blockchain technologies. Therefore, Blockchain will easily creep in and reach a larger user base than in the fields of finance, social, games, etc., where traditional applications are still very strong and dominant.
Understanding this great potential, FADO Go has developed a fully functional loyalty system for our cross-border ecommerce service. Additionally, we offer this solution to companies that do not want to pass up the chance to enter a new, potentially prosperous era of the Internet.
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