Thread by @alvinfoo

𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐝𝐀𝐩𝐩𝐬 𝐚𝐧𝐝 𝐰𝐡𝐲 𝐚𝐫𝐞 𝐭𝐡𝐞𝐲 𝐢𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭?

#Decentralized apps, or "#dApps," are #smartcontract enabled software that work just like regular #apps but without a central authority. dApps instead utilise a peer-to-peer #blockchain to function.

For example, the user data for a standard #Web2 service, like Twitter, is stored on centralized servers and is managed by a single organisation. Web2 apps are therefore vulnerable to censorship and one-sided control of user data, which makes them vulnerable to security flaws.

In contrast, #Web3 dApps are permissionless, open-source protocols that spread user data throughout the network. Dapps are therefore less vulnerable to security concerns and resistant to censorship because there is no single point of failure.

C𝐡𝐚𝐫𝐚𝐜𝐭𝐞𝐫𝐢𝐬𝐭𝐢𝐜𝐬 𝐨𝐟 𝐝𝐀𝐩𝐩𝐬:
◾️ Open-source code and be operable
◾️ The back-end code must run on a blockchain
◾️ Execution of the DApp must be autonomous
◾️ #Data storage is cryptographically on public, distributed networks instead of a centralized server

◾️ A cryptographic #token powers the decentralized application as app users, stakers, yield farmers, and miners earn the tokens as incentive models
◾️  dApps rely on a consensus mechanism like #proofofwork or #proofofstake

𝐔𝐬𝐞 𝐜𝐚𝐬𝐞𝐬 𝐨𝐟 𝐝𝐀𝐩𝐩𝐬
◾️ Decentralized Finance (#DeFi)
◾️ Decentralized Exchanges (#DEX)
◾️ Governance (e.g. #DAOs)
◾️ Entertainment
◾️ GameFi

𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐜𝐨𝐧𝐬 𝐨𝐟 𝐝𝐀𝐩𝐩𝐬:
◾️ High maintenance costs
◾️ User Experience
◾️ Slow speed
◾️ Lack of scalability

Despite a bear market and turbulent global economy, dApps experienced a 50% increase in unique active wallets (dUAW) in 2022, rising from an average of 1.58 million daily dUAW in 2021 to 2.37 million in 2022 on average. solving real world problems!

There is no doubt that dApp usage will steadily rise over the years as the sector diversifies its offerings. 
However, dApps need to address scalability challenges and work on developing better user interfaces for greater accessibility.

The key to mass adoption, therefore, lies in lowering entry barriers, enabling a smooth experience for users and