What is a decentralized application?

Dapps - decentralized app - XEP Dapp - Electra Protocol apps

A decentralized application does not necessarily need to run on top of a blockchain network, such as Electra Protocol. Software such as Tor and BitTorrent are examples for decentralized applications that run on a peer-to-peer network, but not on a blockchain – which is a special kind of peer-to-peer network.

Decentralized applications (dApps) are a piece of so ware that communicates with their corresponding blockchain, which manages the state of all network actors. The interface of the decentralized applications does not look any different than any website or mobile app today. The smart contract represents the core logic of a decentralized application. Smart contracts are integral building blocks of blockchains, that process information from external sensors or events and help the blockchain manage the state of all network actors. Electra Protocol plans to release smart contracts during 2022. After that developers will be able to create smart contracts, their own public tokens, and decentralized applications using Electra Protocol. Stunning times ahead for Decentralized Finance and other possible use cases.

Blockchain as the backend

The frontend of a decentralized application represents what you see, and the backend represents the entire business logic. This business logic is represented by one or several smart contracts interacting with the underlying blockchain. The frontend, as well as files like a photo, a video, or audio, could be hosted on decentralized storage networks such as Swarm or IPFS. Traditional Web applications use HTML, CSS, and javascript or the like to render a webpage. This page interacts with a centralized database, where all the data is stored. When you use a service like Twitter, Amazon, or Airbnb, for example, the webpage will call an API to process your personal data and other necessary information stored on their servers, to display them on the page. User ID and passwords are used for identification and authentication, with low levels of security, since personalized data is stored on the server of the service provider.

Decentralized applications are similar to a traditional Web application. The frontend uses the exact same technology to render the page. It contains a “wallet” that communicates with the blockchain. The wallet manages cryptographic keys and the blockchain address. Public-key infrastructure is used for user identification and authentication. Instead of an API connecting to a database, a wallet so – ware triggers activities of a smart contract, which interacts with a blockchain, which is in our case the Electra Protocol network.