2.2.0. Second Component – Decentralized Applications
Once Charis has succeeded in connecting her lending application to a smartchain, her business now becomes decentralized. That is, there is no more need for a central person to authorize submissions. Thus, Charis’ lending application has become decentralized, and it is called a Decentralized Application (or DApp, for short).
Hope you do understand what DApp means! It simply means an application that has become automated and does not require any central control to operate it. That is, it is automatedly decentralized.
DApps are the second component of a decentralized market system. DApps are one of the most beautiful inventions of this emerging Digital Age, and the blockchain has made them very user friendly. Through DApps, you don’t need banks, governments, or any other centralized authority to run financial activities.
Besides running financial services, you can build DApps for teaching, gaming, controlling crowds in public gatherings, and indeed, for many other daily activities.
DApps are at the early stage of development. As the technology evolves, we are bound to see virtually all the activities we do becoming digitalised by building DApps to execute them.