Bitcoin is a pioneer with its open-source, peer-to-peer ecosystem, blockchain, and a limited number of tokens that power the usability of its features.
Dozens of applications have recently been adopting the Bitcoin model in order to succeed.
They include Ethereum which uses its own blockchain and Omni Layer which uses existing blockchains to issue their own tokens. Others such as SAFE Network operate at two layers above an existing blockchain and issue their own tokens.
What is a Dapp?
A Dapp is a relatively new phenomenon thus a single statement definition will not suffice. But in theory, Dapp is an app which is completely decentralized. The true definition of a Dapp will become clearer as 2018 unfolds. The following are some of the features of a Dapp:
· Be wholly open-source and operate independently with no entity in charge of the majority of its currency.
· Cryptographically store all its operation records and data in a public blockchain.
· All its users must approve any protocol changes designed to improve or add value.
· Generate tokens, or currency, which follows a standard cryptographic algorithm.
· Use bitcoin or a currency that’s inherent to its blockchain system and use it for any future contributions to its value from miners.
An application must have the aforementioned features to qualify as a Dapp. Thus it’s correct to say Bitcoin is a Dapp, though not a practical one at it needs lots of protocol layering to offer strong Dapp functionalities. Ethereum can also be classified as a Dapp, although this is an oversimplification of its true nature. Ethereum’s platform allows developers to build their own Dapps. This is how developers using the Ethereum network created popular Dapps such as Aragon, Augur, and Golem.
Classification of Dapps
Decentralised applications are classified in several characteristics. They include:
· Type 1 Dapps – Have own blockchain and are known as Bitcoin, Litecoin plus all the other “altcoins.”
· Type 2 Dapps – Use the blockchain of a Type 1 Dapp, are their own protocols and have tokens to provide the necessary functionality. It’s like a software program and the Omni Protocol is an example of a Type Dapp.
· Type 3 Dapp – It leverages the protocol of a Type 2 Dapp to become their own protocols, and have their own tokens to generate a use. The SAFE Network uses the Omni Protocol to issue safecoins. This specialised software fulfills a unique need or function.
Formation and Development of a Dapp
The following three stages are involved in developing decentralized applications.
1. Create a whitepaper:
Same as Bitcoin, the most common medium by which a Dapp takes form is by the public release of a whitepaper. The whitepaper describes the protocol, its features, and its implementation. After the public release, feedback from the community is important for further development of the Dapp.
2. Start a crowd-sale:
One the Dapp gains sufficient momentum, choose a date to receive a token finding. All the necessary information that investors may need should be the Dapp’s crowd sale website.
3. Actualise your ideas:
Begin development and welcome new developers and interest groups.
With a sizeable number of Dapp projects already ongoing, 2018 has the possibility of seeing many of them enter advanced testing phases. Each individual Dapp project provides exciting potential as they combine to create a more sophisticated digital ecosystem.