The current financial sector and the overall business environment is built upon a centralized structure that has provided order and standardization to transactions and processes. With a system in place that has worked for decades and maybe even centuries, why would you ever want to change it, especially in terms of adding in decentralized applications (Dapps)?

Yet, that is just what is now happening as the list of benefits associated with a decentralized model continues to grow and as applications , such as Ethereum appear.

A white paper on the subject of decentralized applications, also known as dapps, has presented numerous reasons why it makes sense to build them given their ability to be flexible, transparent, and resilient.

What are Dapps?

According to the dapp white paper, for an application to be considered truly decentralized, it has to:

To provide a detailed picture of dapps, they have been further classified into three types:

Type I dapps have their own blockchain. An example of these are Bitcoin, Litecoin, and other “alt coins.” :

Type II dapps use the blockchain of a Type I dapp. They are their own protocol, and have tokens to provide the necessary functionality. The Omni Protocol is an example of a Type II dapp. This type is like a software program.

Type III dapps leverage the protocol of a Type II dapp to become their own protocols. They also have their own tokens so as to generate a use. As an illustration, the SAFE Network uses the Omni Protocol for issuing safecoins that are then used to get distributed file storage. This type of dapp is like a specialized type of software that fulfills a unique need or function.

This is how each level of dapp builds upon the next one for more sophisticated application.

The Case for Dapps

Dapps add value in a number of ways :

Dapps in Action

To further justify the case for dapps, here are some prime examples of decentralized applications. See how they are actually changing the present and future of many industries:

Build Dapps and They Will Come

That was just a short list of the dapps already at work changing how we work, live and transact. The decentralized environment of dapps demonstates that it can result in more innovation and more solutions to long-standing business and consumer challenges.

As more applications become developed across a wider industry net, a better picture will emerge of the robustness of dapps and why so many people are so excited about building them.

See some sample dAPPS Here