What Does dApp Mean and How Can It Be Applied to Business Models?
Blockchain development is taking the world by storm, helped at least in part by the success of bitcoin. Blockchain was originally created as a critical part of bitcoin, helping to ensure the integrity of transactions and solving the double spending problem—whereby a digital asset could be duplicated or counterfeited—that other digital currencies had previously struggled with.
In short order, however, the tech industry saw a great deal of potential in blockchain development as a way to improve security and guarantee identity verification. One of the central components of blockchain its its decentralized nature.
DApp: What It Means
DApp stands for decentralized application. In other words, a decentralized app does not rely on a single authority source, such as the Apple App Store or Google Play Store. Similarly, with many traditional applications, the app will tie into or otherwise use the backend services of the company that created it. For example, a database or accounting package will use the backend databases of its creator to power the application, even being hosted by the company in the case of web apps. In contrast, a dApp does not store its data via a traditional method. Instead, a dApp’s backend is connected to a blockchain, using it to handle information storage and financial transactions, as well as ensuring that no one company or entity controls it.
Because of this, one of the requirements of a dApp is that it be completely open-source, along with having all of its data encrypted and stored in decentralized blockchains.
How dApp Can Be Applied to Business Models
There are a number of business models that can benefit from the adoption of blockchain technology.
Privacy-Based Businesses
Because of blockchain and dApp’s focus on decentralization, this makes it an ideal option for privacy-focused apps and services. Since no one corporation or entity controls the backend, users’ privacy and security is better protected.
Supply Chains
Because blockchains create an unchangeable, immutable record of a transaction, dApps are a perfect match for the supply chain industry. This ensures no misplaced, lost or altered records after the fact.
Contracts
By its nature, a block in a blockchain only knows about the block immediately preceding it. Because of this, blockchain is an ideal option for smart contracts, as it allows large sums of money to be moved and accounted for without divulging sensitive information.
Medical Records
For similar reasons, dApps can greatly benefit the medical community, as they provide a way for patient records to be stored in a safe, encrypted format that not only protects patient privacy, but is also resistant to tampering.
DApp and Blockchain: The Future
Without a doubt, dApps and blockchain development represent a radical new way to approach business, even for age-old industries like banking. As the technology continues to mature and evolve, the sky’s the limit.
If your company is looking at blockchain development, it’s important to choose a that has the experience and expertise to help you apply it to your business model.
This article appeared here first on OhioBitcoin.com
