What are the benefits of dapps?
More secure than regular appsOne of the most important advantages of decentralized applications compared to central applications is a much improved security. All data is cryptographically encrypted and stored throughout the network. Central servers are all too often victims of hackers, because they basically only need to attack a single location. Due to the encrypted distributed data within a blockchain, money and information can be managed in a more secure way.
Attack resistantDDoS attacks, phishing and identity fraud are an increasing threat in our current digital society and central systems make us very vulnerable in all kinds of ways. The decentralized nature of dapps and blockchain technology make it a lot more difficult for malicious parties.
All data is cryptographically encryptedAll nodes within a blockchain accurately track every action within the network and verify every new transaction. An attacker who wants to attempt an intrusion must take control of the majority of all computers on the network. Only then can he or she obtain or obtain information and that is in principle not possible. Bypassing cryptographic encryption within a distributed system is an extremely difficult task. It goes without saying that there is no guarantee that a decentralized distribution of data is always secure. Future technologies such as the quantum computer, for example, could change this in the future. That is why developers are researching dapps that are quantum-proof and can withstand the computing power of such a supercomputer.
No downtimeDapps do not suffer from downtime. That is, they are always accessible, no matter what is going on within a network. Users can use the dapp at all times, even if there are malfunctions or updates somewhere within the blockchain.
Increase in trustThe consensus mechanism of blockhain technology ensures a strong increase in trust in such networks. Security is increased and the risks of fraud and other malicious practices are drastically reduced. That is why it is also referred to as “distributed trust” when it comes to decentralized distributed networks.
Fast and Cheap TransactionsGlobal transactions can be executed very quickly as there are no third parties to approve these transactions. After all, that approval takes place within the network, on the basis of the consensus algorithms. By eliminating these expensive third parties, transactions can also be carried out much cheaper.
What are the disadvantages of dapps?
Dependence on a consensus mechanism
The execution of dapps depends on the consensus mechanism (such as proof of work). A transaction then depends on miners who work with the cryptographic hashes. If there is no incentive to start mining, the decentralized application cannot be executed or much later. In other words: the process time is far too long compared to a “central” transaction that does not depend on miners.
Growth would reduce efficiency
Another common objection to dapps is that blockchain networks would become less efficient as they grow in size. On the other hand, blockchain experts say that blockchains get much stronger as they get bigger. The truth will no doubt lie somewhere in the middle. Blockchain technology is still in development and this technique is not yet widely used, so not much can be said with certainty yet.
High energy costs
The energy consumption to provide the necessary computing power is a major drawback of blockchain networks that use a mining process to run dapps. Certainly in that respect, proof of stake is a much better alternative to the consensus mechanism than proof of work.
Exciting development, but not without risks
The rise of blockchain technology, dapps, smart contracts and virtual currencies is an exciting development. However, there are also a number of significant risks associated with such autonomous disruptive techniques. Decentralized distributed networks may have the capacity to thoroughly overhaul the financial sector, numerous industries, but also the entire chain management. What could be the consequences of proper decentralization on a very large scale? It is probably not unwise to start delving into the blockchain or to learn a programming language such as solidity!