What are dApps?
The dApps are decentralised or digital applications that operate in a public, open-source environment on a blockchain or peer-to-peer network of computers, rather than a single one. Since dApps are decentralised, they are free from restrictions and the intervention of any authority. The benefits of dApps include user privacy protection, freedom from censorship, and the flexibility of development. There are a few challenges in dApps as well, such as those in scalability, developing a user interface, and editing the coding.
For example, a standard web application like Airbnb functions on a computer system that is owned and operated by the organisation. The full authority over the application and its working rest with the organisation owning it. The app could be used by multiple users at the same time, but the backend control remains with the organisation. In contrast, the dApps could operate on a P2P or blockchain network, where numerous users consume content, feed or seed content, or perform both functions simultaneously.
Challenges in dApps Scalability
CryptoKitties—a dApp developed on the Ethereum blockchain platform—went viral in 2017 and caused congestion in the network due to its online games. This raised a question on the dApps scale in general, and Ethereum dApps in particular.
The majority of blockchain networks, including Ethereum blockchain, encounter the dApps scale issue, transaction latency, and high transaction costs. There are limitations on the block size and the intensely competitive proof-of-work (POW) mining. These result in delayed processing of transactions and users are required to pay enhanced fees to the miners. Therefore, industry experts and blockchain users are now questioning whether blockchain networks will be able to cater to real-time business applications. These questions have increased after an online game (CryptoKitties) congested the entire blockchain network.
Best Blockchain dApps in 2022
The dApps developers are inducing users for the usage of three blockchain platforms. These dApps are very useful and considered the future of the technology. They were developed by Daniel Larimer. Let’s discuss them one by one.
EOS: Is designed as a smart-contract-based operating system with the objective of running large-scale decentralised applications. This platform allows users to create applications without thinking about infrastructure requirements.
Steem: Uses Graphene technology. Steemit is a social-media-based dApp, which is used by 100k users and accessed by 1 million unique visitors every month. This blockchain issues Smart Media Tokens that enable it to stand out among other blockchain platforms. Steemit users can earn money by sharing content on a routine basis. Additionally, the availability of several Steem-based dApps enables users to spend their earnings. One has to consider multiple factors like security protocols and scalability issues before choosing a platform for creating one’s own blockchain dApps.
BitShares: Distinguishing feature is its integrated decentralised crypto exchange platform (DEX), which permits users to buy and sell cryptos, as well as conventional financial instruments, without an intermediary. Its aim is to integrate companies, stakeholders, and business assets into a unified open-source blockchain ecosystem. This is expected to make businesses effective, trustworthy, and transparent.
dApps Scalability in 2022
Ethereum developers are exploring multiple solutions for dApps scalability in 2022. A noticeable one is Sidechains for dApps, also known as DAppChains. It’s based on the concept that all Ethereum dApps do not require the same level of security. To illustrate, funds transfer would require full security, whereas microblogging dApp would not attract hackers, thereby requiring lesser protection. The dApps requiring lesser security could move to Sidechains, having custom rule-sets. These Sidechains could be used to offload computation from the main chain.
However, Sidechains are not enough to enhance dApp scalability in 2022. The reason is that Sidechains increase the block size by accommodating more transactions in a single block. It’s a temporary solution, not an automated scalability one. However, more experiments are possible on Sidechains by defining their own rules. It would help to optimise for dApps requiring high speed, while dApps requiring high security will continue to use the main chain.
Loom Network is creating a software development kit (SDK), which will allow developers to build their own DAppChain. This DAppChain will use Ethereum as the base layer and operate on Plasma technology. It will facilitate the transfer of assets back and forth from Ethereum. Plasma is a scaling infrastructure that permits decongestion of the Ethereum network. It reduces processing power and allows higher transaction speed, thus benefiting dApps.
Other scalability solutions under consideration are the Raiden network and Sharding technology. Both these solutions are under development, which will improve transaction processing speed and dApp scalability in 2022.
Having understood the concept of dApp, its workings, and dApps scalability in 2022, it is possible to get rid of the congestion in the Ethereum network, if any. The dApp scalability in 2022 solutions includes DAppChain, Raiden network, and Sharding technology, which will not only enhance transaction processing speed but also bring down transaction costs. It would be possible for businesses to provide real-time transactions on the dApps when the scalability process is completed.
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