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How Do Decentralized Apps Work? Examples of Centralized and Decentralized Apps

By Sherry Cantwell
Jul 2, 2024
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Digital applications that run on a blockchain network of computers rather than relying on a single computer are referred to as "decentralized applications," or "dApps." How Do Decentralized Apps Work? Well, let's see.

How Do Decentralized Apps Work

A typical web application, like Uber or Twitter, runs on a computer system that is owned and managed by a company, allowing that company complete control over the app and how it functions. On one side, there may be a number of users, but only one company has control over the backend.

DApps can operate on a blockchain network or a peer-to-peer network. In a P2P network, where multiple users are simultaneously consuming content, feeding or seeding content, or performing both tasks, examples of applications include BitTorrent, TorTime, and Popcorn .

In the context of cryptocurrencies, dApps operate on a blockchain network in a public, open-source, decentralized environment and are unaffected by any single authority's control or interference. For instance, a developer may build a blockchain-based Twitter-like decentralized application ( dApp) that allows any user to publish messages. The messages cannot be deleted after they are uploaded, not even the app's developers.

Examples of Centralized and Decentralized Apps

Twitter, Facebook, Instagram, and Netflix are popular centralized app examples. Centralized apps are used by banks and other financial institutions to give their clients online account access.

A decentralized program is Peepeth, a social network that rivals Twitter in popularity. A dApp game called Cryptokitties lets players buy and sell digital kittens. The stablecoin Dai is supported by MakerDAO, a decentralized credit service that enables users to open a collateralized debt ( CDP).

Hopefully, reading this article, "How Do Decentralized Apps Work? Examples of Centralized and Decentralized Apps," can help you to understand it better.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of BitKan. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. BitKan shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. Products mentioned in this article may not be available in your region.

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