Ethereum Dapps: All you need to know before using
In the crypto-verse, a lot of attention is paid to Bitcoin. But don’t let that overshadow the rising interest in Ethereum, which is transforming the way we think of applications. So what is DApp? A DApp, or decentralized application, is a software application that runs on a distributed network. The difference is that it’s not hosted on a centralized server but instead on a decentralized peer-to-peer network. That’s just the shorter version, we have a lot to learn here. With this article, we will dive into the world of DApps, more precisely, those built on the Ethereum protocol.
What is Ethereum?
When we hear Ethereum, we typically only associate it with cryptocurrency. While that characterization isn’t entirely incorrect- it’s essential to understand that Ethereum is much more than just a simple cryptocurrency. It is an open-software platform built on blockchain technology that allows developers to build and deploy decentralized applications. Now, other protocols are used to build DApps, like EOS, Stellar, NEO, Tron, and Cardano, but Ethereum is on top.
Ethereum is a network protocol that allows users to create and run smart contracts over a decentralized network. A smart contract contains a code that runs specific functions and interacts with other smart contracts written by a developer. While bitcoin stores a number, and Ethereum stores executable code.
Why Ethereum?
Because Ethereum removes the need for the third party to handle transactions between peers. Since the middle man gets replaced by code, other costs reduce, including time and effort. Just how Bitcoin eliminates the need for someone to hold the money, Ethereum eliminates the need for someone to broker the deal. Ethereum has been the prevalent host for DApps so far. At its premise, one of the main goals of the network was to make the process of creating DApps easier.
Now the question is, where all these smart contracts are? They get hosted on multiple computer nodes all over the globe. These nodes comprise all the information of the world’s smart contracts, including codes, transactions, and more. They are working round the clock to keep the information up to date, so they all have the exact copy. This is how smart contracts and cryptocurrencies decentralize in general. Since all the nodes have the same information and are laid out worldwide, removing a node won’t hinder the execution of any smart contract. Read more- Ethereum Dapps: All you need to know before using
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