How is blockchain Shaping a decentralized Web 3.0

By Michael Kordvani

There are many benefits of avoiding the middleman while doing business or exchanging data, information or services on the web. For mobile apps, these benefits can turn into fewer resource investments, be it in terms of money, people or time. Processes that can be simplified, innovative and cost-effective are an exciting area for businesses to be put to good use. For these reasons, we are witnessing a rise of interest in blockchain app development.

When an application is not run on a single computer, but rather on a peer-to-peer computer network that can be created and developed by an unlimited number of users, it’s called decentralized. Think of decentralized apps or DApps like a software that is not controlled by a single institution. Therefore, there is no censorship, no single regulator and no classic hierarchy of decisions. Dapps are overtaking the interest of app developers, who are eager to investigate the options of making them work as practical solutions.

But, how did DApps ever come to exist? If you know that they have a lot to do with Blockchain and cryptocurrency, you are right: Bitcoin, for example, is a type of DApp. Cryptocurrency, though, is only one side of the coin (no pun intended). Blockchain app development can be used to create transactions that go way over the financial exchange.

What makes an application decentralised ?

DApps must meet specific criteria to be called decentralized. Here is what you need to keep in mind to be able to define an application as a DApp:

• DApps works by autonomous operation on a fully open-source platform without central control by a single player. Changes are adopted by a democratic consensus of everyone on board. Market feedback plays a role, but only within the consensus.
• All app data and records are encrypted and stored in a public blockchain to avoid any pitfalls on the central level.
• DApps use cryptographic tokens (such as Bitcoin) to enable access to the application and reward the work made by contributors (case in point – Bitcoin miners).
• A decentralized app uses definitive cryptographic algorithms to support the value of the token. The token is a proof of value for the contribution.

How are DApps different from conventional Web Apps?

As we all know, when we engage with a product or a service on the Internet, we don’t have a 100% control of how we use it. There are countless intermediaries – expensive software, strict policies, localization restrictions, or support costs, making it difficult for us to exercise a lot of freedom.

DApps change all that. The initial idea for creating the general platform Ethereum was to overcome some of the centralization disadvantages of the web as it is designed today. By using blockchain app development, its creators made a peculiar decentralized app platform where members can offer DApps without the help of third-party middle persons. In this sense, Ethereum is different than Google Play, which is a centralized software store. Consequently, DApps provide a plethora of possibilities to avoid the cumbersome functioning of conventional apps.

Since they connect users and providers directly, the opportunities for blockchain app development for mobile apps are even more amazing. Send a message, and it’s out there for good. Published content by contributors in a DApp can’t be erased; this makes the information put out there flow in full free circulation.

DApps have a significant impact on the legal framework of software: since they are based on open-source systems, there is no need to found a company or set copyrights. Individuals can own and exchange tokens, making legal entities obsolete. These are only a few of the specifics that make DApps unique, popular and marketable.

DApps Demand: Where does it come from?

If you follow at least one popular information channel, you know that a large part of the blockchain app development is related to cryptocurrency. The popularity of cryptocurrency is on the rise; thousands of new ‘coins’ are constantly created. In parallel, there is a surge of investment and interest in DApps. Although the new market is wrapped in volatility, specific DApp platforms create stability due to their accumulated success. In the chaos of supply and demand, Ethereum currently has a well-established spot for publishing DApps in the long run.

So, who creates the demand for DApps?

A vital source is comprised of uneducated investors in search for a quick return on investment. The desire for fast profit is in the human psychology, and many individuals who trade with cryptocurrency belong to this group. Despite the element of risk involved, it’s important to recognize the wave created by these users in the blockchain app development.

The second legion of contributors is institutional. Even if decentralization seems like an oxymoron in terms of financial control, financial institutions do show interest in DApps. Banks and investors are looking for ways to decentralize goods and services, producing innovative ways for creating and trading with value. For example, exchange-traded-funds are based on the blockchain.

In the end, the market itself and the cryptocurrency community are worthwhile demand architects. Since markets are underwritten in Bitcoin, they contribute to the overall demand.

The place for App Developers: How to respond to the demand

As with any new disrupted market that requires extra knowledge and tools, so is blockchain app development a bit under the radar due to the excessive demand. DApps are created along with the efforts of blockchain app developers to find advantageous new decentralized solutions, while adopting the skills necessary to make it work.

Due to the nature of DApps, there is no better way to learn new skills than actually practicing them. A good skill testing experiment would be to get into cryptocurrency mining. Still, if you are a total blockchain newbie, you need a solid knowledge base. Large industry players, such as IBM or Microsoft, have produced white paper resources dedicated to the blockchain technology. It would be ludicrous to miss on the alphabet of Bitcoin – Satoshi Nakamoto’s paper about inventing the Bitcoin. Udemy, as an informal online academy, offers cheap learning resources for blockchain app developers. Advanced developers can find their own way among the maze of online tutorials; Python is one solution in the area.

Blockchain emergence in the ASEAN

With a dose of due care, we can say that the Asian software development region has been carrying a large share of the blockchain load since its beginnings; the Ethereum, as a generalized DApps platform, was set in place by Vitalik Buterin, and even Satoshi (albeit many agree that his nationality is under a big question mark) is related to the region.

As we are hypothetically moving toward Web 3.0, which means Internet based on distributed DApps with more control in the hands of the mobile phone users, the ASEAN offering for blockchain expertise stands out; this is maybe exactly because of the proliferating combo of DApps in the fintech industry, where the greatest growth has taken place in the last couple of years. For example, India and China have had an overhaul of fintech investment.

With this excellent starting point, the region has a promising potential in at least one area of blockchain app development – crypto economics, as well as in messaging platforms, file exchange and cloud computing.

About the author

Ever since he was a child, Michael was captivated by technology. He now spends his time exploring and writing about captivating new technologies to introduce to the people.