dApp development

What Is DApp: Introduction, Working, and Pros & Cons

Blockchain and cryptocurrencies have been making people all over the world excited. Because the global blockchain market is expected to reach $69.04 billion by 2027, this isn’t a surprise. Demand for technologies that don’t have to be kept in one place is clearly on the rise.

You’ve probably seen a lot of headlines that use words like “NFTs,” “Bitcoin,” and “crypto wallets” in them. Because DApps aren’t something you hear about very often,

What Is a DApp?

Many types of apps can run on their own, called “decentralized apps” or “dapps.” Dapps are apps that can run on their own, like smart contracts. They run on decentralized computing, which is called “blockchain.” DApps, like traditional apps, have a function or use for their users. However, unlike conventional applications, DApps run without human intervention and are not owned by anyone or a group. Instead, DApps give out tokens that represent ownership. These tokens are given out to the people who use the DApp in a way that makes them less likely to own and control it. Without a single person or group controlling the system, the application becomes decentralized.

Using distributed ledger technologies (DLT), such as the Ethereum blockchain, has made decentralized applications more popular. DApps are built on the Ethereum blockchain and other public blockchains, and they can be used to do things like send money using Defi smart contract.

The trustless and transparent nature of DApps has led to greater developments in the utilization of these features within the decentralized finance (DeFi) space.

Digital assets (DApps) are broken down into 17 different types: exchanges and games; finance and gambling; development; storage; high-risk; wallet; governance; property; identity; media; social; security; energy; insurance and health; and more.

How the Blockchain Works

Bitcoin is the most well-known type of currency. When talking about blockchain technology, it might come to mind immediately. However, when focusing on DApps, Ethereum is the most common term. That’s because most decentralized apps are built on this blockchain platform.

Finally, DApps use intelligent contracts to connect to the blockchain instead of traditional apps, which relate to centralized servers to get data as conventional apps do. A smart contract is at the heart of a DApp because it makes it easier for people to follow their agreements.

Platforms for making DApps

As we said above, most DApps are built on the Ethereum platform. With more than 3,500 DApps and more than 160k people using them every day, these apps may soon become the norm.

In May 2021, State of the DApps said that the top five development platforms are Ethereum, EOS, Steem, TRON, and Klaytn. These are the platforms that people use to make apps.

As you can see, Ethereum is far and away from the most popular platform regarding the number of DApps and people who use them every day. If you look at the most popular apps, you’ll see that they all use Ethereum.

DApp features that are important to know about

Now that you have a general idea of what DApps are let’s get more specific and talk about what makes them up.

A project that is open source To make a DApp, it must be open-source, with no single person or group in charge of it. It must be able to run on its own, and the code must be available for people to look at.


It has to keep its operational records on a blockchain that no one but itself runs.

Incentivized. It must be able to generate tokens as proof of value and distribute these tokens as rewards on the network.


To show that a DApp is worth something, all stakeholders must agree on a cryptographic method. For example, both Bitcoin and Ethereum use Proof of Work to make sure that everyone agrees. Because the latter plans to switch from Proof of Work in the next few years to Proof of Stake.

To sum up, end users may not be able to tell DApps from traditional apps because the main difference is in the blockchain protocol.

Find out why Blockchain is suitable for mobile apps and why it’s not good for them.

The following is a list of apps that are not controlled by anyone else.

Before you start making your own DApp, it’s good to look at what’s already out there. State of the DApps is a great website with a lot of information and statistics about decentralized applications.

In this writing, three of the top five DApps are built on Ethereum. Two of the five are in games, and the other two are in business.

Tether, a cryptocurrency whose tokens are backed by an equal amount of real money, is at the top of the list. It is an Ethereum DApp with more than 67,000 users who use it every day.

Splinterlands and Upland fill the second and third places. Each game is made for a different platform: Hive and EOS.

The following is a list of apps that are not controlled by anyone else.

There is no doubt that Ethereum DApps are the most common type of app. It’s a fight between finance apps and games to see who can be first in the market.

We hope we’ve helped you understand the basics of decentralized apps. They have both good and bad things. If you want to know more about them, keep reading.

Benefits of Decentralized Applications

Often, when technology is centralized, that means that it is run and controlled by a single company, government, or person. On the other hand, decentralized technology is run by a group of people who no one person can control or shut down. As you can see, there are many benefits to decentralization.

Users don’t have to put their trust in a single person.

Our information and money go to businesses and governments all the time. It’s fine to make these decisions on a case-by-case basis, and it’s not wrong. You may believe that the product you use to back up your photos will work for a long time even if the company that makes it is bought or goes out of business. The social media company may sell your data to advertisers who follow you around the internet. Well-designed decentralized networks should make it possible for you to lessen or eliminate the trust that you have to put in other people.

There is less of a chance that one thing will go wrong.

We see single points of failure in the form of websites going down. You can’t get your emails when Gmail goes down. Your bank’s website shuts down for maintenance, and you can’t do an online transfer to pay your bills. In decentralized networks, no one node going down can take down the entire network, so no matter how many users come and go, your applications should remain up and running.

There are fewer rules. 

It’s becoming more and more common for governments to block their citizens’ access to social media to keep people from hearing about what is happening inside their own countries. It is very easy for them to stop people from using Twitter because they only have to prevent traffic from going to Twitter’s central servers. In a peer-to-peer network, every outbound packet could be communicating with another peer on the web, who could then pass the message on. This makes it very hard for them to censor traffic.

People who use decentralized networks are more likely to be able to build things on them.

No one controls these networks. This means that anyone can build great tools, products, and services on top of them. This contrasts with centralized technology, which is more likely to be closed off and not open to new ideas. The fact that a company is open and decentralized doesn’t mean that it can’t make money. In fact, it means the opposite. The more great products and tools are made, the more network effects keep users in the network, and the more opportunities there are to build great businesses on top. The world wide web itself is an excellent example of an open network. Many great companies, like Amazon, we’re able to grow hugely because of the network effects of all the great things built on top of the network.

There is a chance that network owners could work together.

If you help a decentralized network, you should be able to own or have an economic stake in it. This makes the network more valuable as the network grows. This is one of the most exciting things that blockchain technology can do for decentralized networks because it allows economics to be built into the networks themselves. This makes it easier for early participants to become influential evangelists and value-contributing users. In contrast, only the company that owns the network in a centralized network gets the value as the network grows. This is why it’s exciting for users to be part of a decentralized network.

Decentralized networks can be more meritocratic.

In the long run, when everyone plays by the same rules, the best things will get more attention and be rewarded. It might not be as fair if traffic, engagement, and money are given out instead through a closed, centralized algorithm.

Downsides of Decentralized Apps

Most things have a downside or a limitation that you should think about before buying them. DApps aren’t any different. So, let’s quickly go over their main flaws.


 Many DApps have a terrible user experience that needs to be fixed. In reality, it can be hard to find your way around. However, the more businesses are likely to use the blockchain, the more valuable it will become.


DApps can be hard to keep up with because the code and data on the blockchain can’t be changed. It’s hard for an Ethereum DApp developer to make changes if old versions have bugs or security flaws.

People are having problems with the network. If one DApp takes too many resources from the blockchain network, it can be prolonged. As a result, DApps cannot work correctly, which slows down the speed of payments and makes them take longer.

How Do You Start Making DApps?

The blockchain world is giving businesses a lot of new chances. It’s a good bet that if you want more transparency, security, and efficiency, blockchain technologies and DApps will be on your radar.

How do I make a DApp, and what is the process of creating one? Making decentralized apps is very different from making other types of custom software. Let’s look at each step below.

Steps in the process of making a DApp

1. Find out what the issue is

First, you need to figure out what you want to do with your DApp or, in other words, what the problem is that you want to solve. Start by writing down your concerns and seeing if a decentralized application can help you solve them.

If so, do you want to get rid of third parties from your deals? Or, maybe, you want to spread information and services outside of a single place. You need to figure out what a DApp can do for you first.

2. Make a Proof of Concept.

Next, you need to make a Proof of Concept (POC) to show that your idea works and that it’s possible. Overall, it will help you test your DApp before you spend a lot of time and money on it, saving you both time and money. Take this step seriously because it can help you figure out where you have problems and where you can improve.

There are lots of examples of Blockchain Proof of Concepts in different industries.

Pick a DLT Platform:

You should start thinking about making your project work after your POC is done. Because there are so many different platforms for making DApps, you need to figure out which one is best for you. It’s important to figure out which blockchain platform will work best for your needs.

Ethereum is probably the best choice because it can make smart contracts. However, make sure to do your research to choose what works best for you.

4. Make and Test the DApp.

Then, after you choose a DLT platform, you can start working on and testing your app. Make sure the DApp is thoroughly tested, whether you hire a company to make it or build it on your own. After all, you don’t want to launch your new software and have problems that could have been easily fixed.

Launch your DApp.

This is the end of the process. Your DApp is ready to go! Remember to be extra careful when launching on the production server because there is no room for mistakes. Keep in mind that it’s hard to make changes once the application is up and running. So don’t rush the process.

The technical side is more complex because these are high-level steps. You don’t have to figure out how to make a DApp on your own. You can get help. Instead, think about hiring experts to help you develop your blockchain-based DApp.

Take a look at how Velvetech made a browser that could help people mine for crypto.

Related Blog: BSC Vs Solana – Which one is better for dApp development?

Factors Affecting the Cost of DApp Development

This means that the following question on your mind is how much this will cost you. As it turns out, there isn’t a simple answer to this. Instead, there are a lot of things that affect how much it costs to make a DApp, so we’ll cover the four main ones below.


The type of business where the DApp will be used has a big impact on the cost of making it. Primarily, this is because each industry is different and requires a different level of skill. Some industries have very strict rules that need to be met. It’s possible that a lot of people will use some DApps at once.

There may be many people in the insurance business who need to use the same app at once, like customers, brokers, and insurers. These differences add up to a higher development cost in the end.


A significant factor in the cost of making a DApp is how complicated each project is. Which blockchain platform are you going to use? The technology stack that will be used is called a technology stack. Do you need to make your API, or will you use one that’s already been made? You’ll have to answer these questions to figure out how challenging your project will be.

This is a simple example of a DApp: a payment app that works with existing cryptocurrencies. If you were to start from scratch and build a blockchain platform from the ground up, it would be a lot more complicated and cost more money.

Different types of dApps

Based on the blockchain model that is used, there are three types of decentralized applications:

Type one:

There is a blockchain for each of these dApps, like the Bitcoin blockchain. Other cryptocurrencies that have their blockchains are also in this group.

Type two:

They use the blockchain of Type 1 apps. These apps are called protocols and have tokens needed for them to work. In terms of Type 2 applications, the Omni Protocol is the best one. Omni is a trading platform built on top of the Bitcoin blockchain as a “layer” to make it easier for people to exchange assets or value without the help of middlemen.

Type three:

This is how type 3 dApps work: They use the same protocol as type 2. If you want to know what a Type 3 dApp looks like, look at the SAFE Network (Secure Access for Everyone). Decentralized data storage and communication network: It doesn’t have data centers or servers but instead uses the extra computing power of its users to make up for them. It is an independent data network that lets you make websites and apps that can’t be censored. It uses the Omni Protocol to make SafeCoins, which are then used to make it work.

Costs of labor

There’s also a big difference in labor cost when you’re making a DApp. Fees will change depending on the size of the team, where it is, and how qualified it is. Make sure you don’t forget about recruiting, insurance, and holidays when you figure out how much it will cost to run your business.

When hiring blockchain experts, there are many things to think about, so make sure you’ve looked at both options.

The Pitfalls of Outsourcing Software Development will show you how to avoid them.

This is just the beginning. DApps, on the other hand, are already being used in financial and gaming services as well as logistics and other industries. People will start using them soon because businesses are looking for ways to cut down on time and improve security, so they’ll start using them more. You should not fall behind now.

If you want to stay on top of digital innovation and start using blockchain-based technologies, don’t be afraid to contact us. When you need to hire dApp developers, Suffescom can help you because they have a lot of experience with custom blockchain development and building solutions that solve unique business problems.

If you get ahead of your competitors with this new technology, you’ll be able to grow and succeed in the long run. DApps are still very new. You should look into what decentralized applications can do for you right away, so don’t put it off and hire dApp developers for your project now.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *