What is a Decentralized Application?

Internet users don't have sole control over the data they share on today's websites.

Ethereum is unique in that it attempts to wield the blockchain as a way to correct what its designers believe is a problematic part of the internet's design.

It's like a "decentralized appstore" where anyone can publish their unstoppable apps (dapps), which unlike today's apps (think Gmail or Uber) don't require a middleman to function or to manage a user's information.

Dapps connect users and providers directly.

One example is to use this design for a decentralized Twitter that's resistant to censorship. Once you publish a message to the blockchain, it can't be erased, not even by the company that created the microblogging system.

There isn't one definition of a dapp, though, as it's a newer concept.

A couple of main characteristics are that they're open source and don't have a central point of failure.
Three types
With this new technology out in the wild, ethereum advocates might feel electrified by the thought of decentralizing "all the things." But the types of applications that users can build with the computing platform might be somewhat narrow.

The ethereum white paper splits dapps into three types: apps that manage money, apps where money is involved (but also requires another piece), and apps in the "other" category, which includes voting and governance systems.

In the first type of app, a user may need to exchange ether as a way to settle a contract with another user, using the network's distributed computer nodes as a way to facilitate the distribution of this data.



The second type of app mixes money with information from outside the blockchain.

For example, a crop insurance application that's dependent on an outside weather feed. (Say a farmer buys a derivative that automatically pays out if there's a drought that impacts his work.)

To execute, these smart contracts rely on so-called "oracles" that relay up-to-date information about the outside world. (Though, it's worth noting that some developers are skeptical that this use case can be done in a decentralized way.)



If bitcoin can do away with financial authorities, is it possible to do the same for companies and other types of organizations?

Decentralized autonomous organizations are one particularly ambitious breed of dapp (this is explained further in 'What is a DAO?').

The goal is form a leaderless company, program rules at the beginning about how members can vote and how to release company funds and then... let it go.



Authored by Alyssa Hertig; images by Maria Kuznetsov; Text via Coindesk
NEXT: WHAT IS A DAO?

INDEX: A BEGINNERS GUIDE TO BITCOIN AND BLOCKCHAIN TECHNOLOGY


What is Bitcoin?
It’s a decentralized digital currency
Why Use Bitcoin?
It’s fast, cheap to use, and secure
How Can I Buy Bitcoin?
From an exchange or an individual
How to Buy Bitcoin in the UK
Buying bitcoin in the UK
How to Store Your Bitcoin
Use a digital or paper wallet
What Can You Buy with Bitcoin?
Spend your bitcoins
How to Sell Bitcoin
A guide on how to sell your bitcoins
How to Accept Bitcoin Payments for Your Store
Learn about bitcoin POS systems
How do Bitcoin Transactions Work?
Bitcoin addresses and private keys
Is Bitcoin Legal?
The current regulation around bitcoin
Who is Satoshi Nakamoto?
The founder of bitcoin
How Bitcoin Mining Works
By confirming transactions
How to Set Up a Bitcoin Miner
Generate bitcoins yourself
What are Bitcoin Mining Pools?
What are pools how and how to join them?
How Does Cloud Mining Bitcoin Work?
Alternative bitcoin mining solutions
How to Calculate Mining Profitability
Can you make a ROI?
How to Make a Paper Bitcoin Wallet
Creating an unhackable bitcoin wallet
Can Bitcoin Scale?
A look at the debate and the tech
What is SegWit?
A new way of storing transaction data
What is the Lightning Network?
Off-chain transaction channels
What is Bitcoin Cash?
Same blockchain, different characteristics.
Hard Fork vs Soft Fork
Why and how do blockchains split?
What is the Difference Between Litecoin and Bitcoin?
It’s the silver to bitcoin’s gold
How to Buy Litecoin
How to buy the bitcoin alternative litecoin
How to Mine Litecoin and other Altcoins
How to generate your own altcoins
Understanding Bitcoin Price Charts
A primer on bitcoin price charts
Bitcoin E-Commerce Services for Merchants
How to accept bitcoin at your business
What is Blockchain Technology?
A system of distributed data and logic
How Does Blockchain Technology Work?
Cryptographic keys, distributed networks and network servicing protocols
What Can a Blockchain Do?
Identity, recordkeeping, smart contracts and more
What is a Distributed Ledger?
A dynamic, independently maintained database
What is the Difference Between Public and Permissioned Blockchains?
Can anyone read or write to the ledger?
What is the Difference Between a Blockchain and a Database?
It begins with architectural and administrative decisions
What Are the Applications and Use Cases of Blockchains?
Tokenization, auditing, governance, settlement and more
How Could Blockchain Technology Change Finance?
Cross-border payments, new asset classes, regulatory compliance and more
What are Blockchain’s Issues and Limitations?
Complexity, size, costs, speed, security, politics and more
Why Use a Blockchain?
To manage and secure digital relationships as part of a system of record
What is Ethereum?
A blockchain application platform and ‘world computer’
What is Ether?
The ‘fuel’ of the ethereum network
How to Use Ethereum
Wallets, trading and ‘dapps’
Who Created Ethereum?
Vitalik Buterin
How Ethereum Mining Works
‘Proof of Work’ and ‘Proof of Stake’
How to Mine Ethereum
GPUs, mining software and pools
How Ethereum Works
‘Turing-complete’ programming, ‘state’ and the ‘EVM’
What is a Decentralized Application?A distributed ‘smart contract’ system
What is a DAO?A ‘decentralized autonomous organization’
How Do Ethereum Smart Contracts Work?Code, transaction fees and ‘gas’
How Will Ethereum Scale?‘Sharding’ and ‘off-chain’ transactions
What is an ICO?Initial Coin Offerings refer to the distribution of digital tokens

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