dApps, decentralized apps, are open-source software applications that run on the peer-to-peer (P2P) system of a blockchain network instead of the traditional system controlled by a central entity. As an integral of cyber-technological evolution, dApps are hosted on Web 3.0 rather than the conventional Web 2.0.

In the frontend interface, dApps are similar to conventional applications with the codes used in writing them. However, the backend codes used in writing them are very different.

Practical Use Case of dApps

Globally, dApps have been instrumental in making lives easier by offering simple and secure solutions to solving real-life problems. Below are some of the infamous industries where dApp solutions are practically employed:

Financial Technology

dApps can be used to build solutions that facilitate secured and swift peer-to-peer financial transactions. Ethereum and Ripple have been breaking ground in this sector.

Insurance

Companies like Guardtime and B3i use dApps to streamline/automate insurance processes, automate claims, and provide transparent and auditable records.

Real Estate

dApps are used to enable secured and transparent plant, property, and equipment transactions using the smart contract feature to automate processes. ShelterZoom and RealBlocks use the blockchain to simplify real estate processes and transactions.

Healthcare

dApps are used to store and track healthcare information as well as to facilitate the communication and collaboration of healthcare professionals beyond physical boundaries.

Supply Chain Management

They are used to create solutions that enable trackable, traceable, and transparent accountability for supply chain management. Records of transactions are stored in real-time while ensuring accountability and diminishing the incidence of fraud.

Identity/Credential Verification

dApps are used to securely store and verify identity and credentials including voter information, passport applications, and academic credentials.

How about DeFi?

The quest for a more secure transaction gave birth to the discovery of blockchain technology. It’s quite irrational to talk about blockchain, specifically dApps, without paying due credence to its impact on finance. This, however, leads us directly to the concepts of DeFi (It’s worth noting that DeFi is a subset of dApps).

DeFi, Decentralized Finance, is an emerging financial technology built on blockchain technology with the aim of bridging the gaps between parties in transactions thereby eliminating third parties and centralized financial institutions from the picture through peer-to-peer function.

DeFi Hegemony

Below are the strengths and hedges DeFi has over every other financial technology;

Security and Transparency

A core feature of DeFi is that transactions which are recorded on the blockchain are immutable. The records of completed transactions are available for anyone to review but the identities are kept anonymous.

Autonomy

Transactions on DeFi platforms do not rely on intermediaries or any central financial authorities for processing them. Hence, making them invulnerable to bankruptcy and fraud.

Accessibility

DeFi platforms can be accessible to anyone as long as they have access to an internet connection regardless of their geographical restriction and location.

Putting it Together

Over the years, the impact of dApps has been positively felt in almost every ecosystem in the world. The world is yet to see the best of the two Web 3.0 big “guns”.