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Decentralized application

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418:, the distribution of initial tokens, and the distribution of ownership. Firstly, the whitepaper is published, describing the DApp’s protocols, features and implementation. Then, required software and scripts are made available to the miners and stakeholders that support the validation and fundraising of the network. In exchange, they are rewarded with the initial tokens distributed by the system. Lastly, as greater numbers of participants join the network, either through utilisation of the DApp or through contributions to the DApp’s development, token ownership dilutes, and the system becomes less centralised. 175: 393: 2398: 73: 2422: 32: 2410: 485:
one fifth of DApps capture almost all the DApp users on the Ethereum blockchain. About 5% of DApps capture 80% of Ethereum transactions. 80% of DApps on Ethereum are used by less than 1000 users. On Ethereum, DApps that are exchanges capture 61.5% of transaction volume, finance DApps capture 25.6%, gambling DApps capture 5%, high-risk DApps capture 4.1%, and games capture 2.5%.
407:, fund-raising and development. In mining, tokens are distributed as per a predetermined algorithm as rewards to miners that secure the network through transaction verification. Tokens can also be distributed through fundraising, whereby tokens are distributed in exchange for funding in the initial development phase of the DApp, as in an 324:
Although traditional DApps are typically open-source, DApps that are fully closed-source and partially closed-source have emerged as the cryptocurrency industry evolves. As of 2019, only 15.7% of DApps are fully open-source while 25% of DApps are closed source. In other words, the proportion of DApps
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is the distributed ledger technology (DLT) that has the largest DApp market. The first DApp on the Ethereum blockchain was published on April 22, 2016. From May 2017, the number of DApps being developed have grown at a higher rate. After February 2018, DApps have been published every day. Less than
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DApps incur gas, that is fees paid to the validators of the block chain, due to the cost of deploying and executing the DApp's smart contracts. The amount of gas required of a DApp's functions is dependent on the complexity of its smart contracts. A complex smart contract of a DApp that operates on
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Smart contracts are used by developers to maintain data on the block chain and to execute operations. Multiple smart contracts can be developed for a single DApp to handle more complex operations. Over 75% of DApps are supported by a single smart contract, with the remainder using multiple smart
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DApps have not achieved wide adoption. Potential users may not have the skill or knowledge to be able to effectively analyse the differences between DApps and traditional applications, and also may not value those differences. This skill and information can be difficult to access for mainstream
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Internet connectivity is a core dependency of blockchain systems, which includes DApps. High monetary costs also act as a barrier. Transactions of small monetary values can comprises a large proportion of the transferred amount. Greater demand for the service also leads to increased fees due to
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The performance of a DApp is tied to its latency, throughput, and sequential performance. Bitcoin's system for transaction validation is designed so that the average time for a block on bitcoin's blockchain to be mined is 10 minutes. Ethereum offers a reduced latency of one mined block every 12
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or other distributed ledger system. Like traditional applications, DApps provide some function or utility to its users. However, unlike traditional applications, DApps operate without human intervention and are not owned by any one entity, rather DApps distribute
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that represent ownership. These tokens are distributed according to a programmed algorithm to the users of the system, diluting ownership and control of the DApp. Without any one entity controlling the system, the application is therefore
389:. Bitcoin uses the proof-of-work mechanism. Proof-of-stake is a consensus mechanism that supports DApps through validators that secure the network by having a stake and percent ownership over the application. 430:, as opposed to typical applications where the backend code is running on centralized servers. A DApp can have frontend code and user interfaces written in any language that can make calls to its backend. 988:
Lee, Timothy (2013). "Bitcoin needs to scale by a factor of 1000 to compete with Visa. Here's how to do it: The Bitcoin network can only handle 7 transactions per second. Visa can handle 10,000".
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with publicly available code is less than the proportion of Dapps without publicly available code. DApps that are open-source generally have higher transaction volumes than closed-source DApps.
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Johnston, D., Yilmaz, S. O., Kandah, J., Bentenitis, N., Hashemi, F., Gross, R., ... & Mason, S. (2014). The General Theory of Decentralized Applications, DApps.
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Many DApps struggle to attract users, particularly in their founding stages, and even those that attract widespread initial popularity struggle to retain it.
441:. Decentralized finance protocols validating peer-to-peer transactions, such as Aave Protocol, are expected to disrupt centralized finance and lower costs. 527:– game built on Ethereum. It slowed Ethereum down due to insufficient transaction processing and exposed the scaling limitations of public blockchains. 489:
users. Additionally, the user experience for DApps is often poor, as they are often developed to prioritize functionality, maintenance and stability.
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DApps can be classified based on whether they operate on their own block chain, or whether they operate on the block chain of another DApp.
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Andoni, Merlinda; Robu, Valentin; Flynn, David; Abram, Simone; Geach, Dale; Jenkins, David; McCallum, Peter; Peacock, Andrew (2019-02-01).
313:. That is, the application operates autonomously without a centralised entity in control of the majority of the application’s associated 374:
Consensus mechanisms are used by DApps to establish consensus on the network. The two most common mechanisms to establish consensus are
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blockchain may fail to be deployed if it costs too much gas, leading to lower throughput and longer wait times for execution.
2338: 1166: 1153:. Advances in Intelligent Systems and Computing. Vol. 965. Cham: Springer International Publishing. pp. 608–616. 907:"Are decentralized finance really decentralized? A social network analysis of the Aave protocol on the Ethereum blockchain" 123: 1005:"It's DeFi season and things got a little too hot to handle for Solana and Arbitrum One as transaction volumes ballooned" 575: 414:
There are three main steps that always occur in the formation and development of any DApp: the publishing of the DApp’s
2013: 473:(NFTs). Transaction fees are affected by the complexity of a DApp's smart contracts, and by the particular blockchain. 2154: 321:
blockchain that is used by the application to keep a cryptographic record of data, including historical transactions.
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This article is about trustless decentralized applications (DApp). For other types of decentralized applications, see
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DApps are divided into numerous categories: exchanges, businesses, gambling, games, finance, development, storage,
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There are a series of criteria that must be met in order for an application to be considered a DApp.
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and another similar gaming-based DApp Dice Games have failed to attract similar traction since.
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Cai, Wei; Wang, Zehua; Ernst, Jason B.; Hong, Zhen; Feng, Chen; Leung, Victor C. M. (2018).
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handles approximately 10,000 transactions per second. More recent DApp projects, such as
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Proof-of-work utilises computational power to establish consensus through the process of
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Please help update this article to reflect recent events or newly available information.
1968: 1922: 1473: 1444: 1424: 1172: 1127: 1101: 1053: 950: 906: 869: 762: 736: 669: 554: 470: 276: 404: 386: 2225: 1706: 1434: 1429: 1276: 1176: 1162: 1131: 1119: 1057: 970: 873: 861: 766: 754: 673: 661: 576:"CVC Money Transmission Services Provided Through Decentralized Applications (DApps)" 530: 518: 2383: 2333: 2313: 2169: 2149: 2119: 1844: 1839: 1820: 1577: 1154: 1111: 1045: 960: 851: 746: 651: 514: 318: 269: 501:, which heavily slowed down the Ethereum network at the height of its popularity. 446: 2353: 2303: 2114: 1158: 251: 965: 938: 465:, which is attributed to increased network traffic caused by DApps built on the 2179: 2109: 2059: 1963: 1740: 1711: 1483: 1478: 1449: 1380: 656: 639: 379: 352: 332: 2442: 2232: 1498: 1488: 1280: 1123: 974: 865: 758: 665: 524: 497: 375: 1191:"People have spent over $ 1M buying virtual cats on the Ethereum blockchain" 392: 309:
Traditional definitions of a decentralised application require a DApp to be
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blockchain, on which DApps are built, amongst other public blockchains.
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Advances in Artificial Intelligence, Software and Systems Engineering
1115: 856: 839: 750: 536: 450: 840:"Comparative evaluation of consensus mechanisms in cryptocurrencies" 72: 2124: 2104: 2084: 2074: 2069: 1993: 1953: 1932: 1795: 1775: 1769: 1749: 1726: 1696: 1626: 1616: 1611: 1571: 1562: 1547: 1542: 1537: 1439: 1349: 1106: 955: 741: 689:"Understanding Ethereum, Bitcoin's Virtual Cousin (Published 2017)" 481: 466: 462: 363: 280: 888:"Why 'DeFi' Utopia Would Be Finance Without Financiers: QuickTake" 2272: 2237: 2194: 2089: 2064: 2036: 1810: 1552: 1517: 548: 542: 328: 2247: 2174: 2094: 2079: 2026: 1830: 1764: 1656: 1606: 1587: 1244:"CryptoKitties Mania Overwhelms Ethereum Network's Processing" 1145:
Glomann, Leonhard; Schmid, Maximilian; Kitajewa, Nika (2020).
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DApps distribute their tokens through three main mechanisms:
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that can operate autonomously, typically through the use of
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DApps have their backend code running on a decentralized
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Wu, Kaidong; Ma, Yun; Huang, Gang; Liu, Xuanzhe (2021).
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Ao, Ziqiao; Horvath, Gergely; Zhang, Luyao (June 2022).
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Wu, Kaidong; Ma, Yun; Huang, Gang; Liu, Xuanzhe (2021).
533:– a platform for developing decentralized applications. 1034:"Transaction fee economics in the Ethereum blockchain" 437:(DeFi), in which dapps perform financial functions on 1144: 637: 275:
Decentralised applications have been popularised by
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(2019). 837: 1087: 1032:Donmez, Anil; Karaivanov, Alexander (2022). 880: 722: 396:A Bitcoin mining rig composed of dozens of 60:Learn how and when to remove these messages 2421: 1372: 1358: 1216: 1105: 1002: 964: 954: 855: 740: 655: 215:Learn how and when to remove this message 157:Learn how and when to remove this message 644:Renewable and Sustainable Energy Reviews 391: 1222: 2441: 2208: 1266: 1241: 686: 457:, have attempted to exceed that rate. 2339:Decentralized autonomous organization 1353: 1203: 1083: 1081: 1079: 1077: 1075: 1073: 1071: 1069: 1067: 1027: 1025: 1003:Prabhjote, Gill (15 September 2021). 932: 930: 928: 926: 924: 922: 920: 718: 716: 714: 712: 710: 708: 706: 704: 702: 2409: 1379: 833: 831: 829: 819: 817: 815: 813: 811: 809: 807: 805: 803: 801: 687:Popper, Nathaniel (1 October 2017). 633: 631: 629: 627: 168: 95:adding citations to reliable sources 66: 25: 987: 13: 1334:from the original on June 18, 2023 1223:Leising, Matthew (July 26, 2018). 1138: 1064: 1022: 917: 699: 469:blockchain, such as those used by 421: 346: 14: 2475: 2349:Distributed ledger technology law 1094:Software: Practice and Experience 826: 798: 729:Software: Practice and Experience 624: 595: 41:This article has multiple issues. 2420: 2408: 2397: 2396: 173: 71: 30: 1311: 1293: 1260: 1235: 1197: 1183: 996: 981: 898: 613:from the original on 2020-04-26 495:A notable example was the DApp 277:distributed ledger technologies 82:needs additional citations for 49:or discuss these issues on the 781:"Where did Bitcoins come from" 773: 680: 568: 1: 561: 539:– platform on smart contract. 301: 1159:10.1007/978-3-030-20454-9_60 545:– blogging and social media. 433:DApps have been utilized in 369: 317:. DApps also have a public, 16:Type of computer application 7: 1410:Cryptographic hash function 1242:Kharif, Olga (2017-12-05). 1204:Vigna, Paul (29 May 2019). 966:10.1109/ACCESS.2018.2870644 844:Internet Technology Letters 508: 445:seconds on average (called 335:, is an example of a DApp. 106:"Decentralized application" 10: 2480: 1267:Corbyn, Zoë (2018-09-08). 657:10.1016/j.rser.2018.10.014 551:– cryptocurrency exchange. 350: 191:Last update: March 7, 2021 18: 2392: 2369:Initial exchange offering 2344:Decentralized application 2324:Cryptocurrency in Nigeria 2286: 2260: 2050: 2012: 1941: 1898: 1829: 1739: 1689: 1665: 1649: 1625: 1586: 1561: 1507: 1497: 1463: 1387: 1149:. 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For comparison, 279:(DLT), such as the 1474:Proof of authority 1445:Non-fungible token 1425:Distributed ledger 1307:. 16 October 2020. 1193:. 3 December 2017. 1050:10.1111/ecin.13025 785:The Times of India 693:The New York Times 401: 2436: 2435: 2256: 2255: 1735: 1734: 1435:Lightning Network 1168:978-3-030-20454-9 1100:(10): 2033–2050. 894:. 26 August 2020. 787:. 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