What exactly do dapps bring the table?

in #cryptocurrency6 years ago (edited)

So many people don't realize why you would ever use blockchain tech. The most common argument is that centralized systems are always going to be more effective and reliable. This argument was a lot more effective with first generation proof of work based cryptocurrencies. These days the idea that blockchain is nothing more than a slow and inefficient database is fairly weak. Considering the fact that we have next generation crypto coming a long that can handle tens of thousands of transactions per second I would say that the gap between a centralized server and a decentralized blockchain is sufficiently small at this juncture.

So what are the tradoffs with a blockchain vs a centralized database? And why are decentralized applications like steemit/busy/Dlive so important? The most important thing to keep in mind with this kind of system is to understand revenue models for content creators. The people who will most be effected by decentralized technology are the content creators like Youtubers, streamers, and bloggers. Next in line will be gamers. Gamers are going be swarmed in the next couple of years.

Dapps, or decentralized applications, such as Dlive and Steemit provide an additional revenue model as an option for those who are interested.

  • Currently right now the most common revenue model is ad revenue.
    The ad revenue model allows for content creators to make money by showing advertising in conjunction with their content.
  • Another very common revenue model is direct donations.
    Patreon is a good example of this model but really all it takes is a pay pal account honestly.
  • You, of course, also have merchandising and things of that nature.
    Selling products, t shirts mugs and things like that is usually pretty common.

I am probably leaving out a couple of other revenue models but those are the most common. Every content creator has different ideas on what models work best for them. So in the case of a dapp the product itself is the real world use case and the crypto it is tied to is the speculative asset. A really well created dapp will tend to raise demand for the coin that the dapp uses. This will generate wealth for the creator of the dapp.

Dapps are just like any other kind of application really. The goal of creating the dapp is to make money. The difference is that dapps are free to use and the only reason the application gains value is demand for the dapp. Its a new profit model that can be used for all kinds of thing from corporations to content creators. Zero cost entry fee, and if the dapp is something that people think will hold value then investors will buy the crypto it uses while

  • "If its free you are the product"

You may have heard of this adage before and it usually rings true. But in the case of dapps its not true at all. There is no way to convert you into a product on a dapps platform. Most things will either be fully public or hidden below layers of encryption. Nobody is going to be able to really own the platform. Not even the nodes or block producers.

What specific advantages does a dapp bring to the table?

  • You do not have to provide an identity
    Dapps can work without even knowing who or what you actually are.
  • You can profit from releasing your content seamlessly without even needing to reveal your identity.
    Nothing else really provides this in such an open manor.
  • Censorship resistence
    Its way harder to censor people on a dapp. Now I know a lot of people will say certain coins are more decentralized than others but ultimately. The bar is low as hell for this particular aspect. All a dapp needs to do is be more censorship resistant than Facebook, Youtube, Twitter, Twitch and Reddit to be an improvement on that front. Its literally impossible to be worse than those platforms at this point in time. The blockchain is a massive upgrade vs those platforms. Ill take 21 block producers with a consensus model over fucking Facebook any day. Its not even a contest.
  • Dapps are free and they dont have any hooks like centralized applications do.
    Make an account and chances are you have a minimal amount of coinage to use whatever dapp you want.
  • Dapps are the most efficient model right now for spreading the cost of running nodes across all people rather than placing the cost on any one individual. I don't think this system exists at all outside of the crypto space.

As dapps begin to become more popular you will begin seeing people monetizing things they do a lot more seamlessly without red tape or hassle. Content creators will not live under the rule of the ever present ban hammer and people will be able to speak their minds.

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Superb post brother, you really hit the nail on the head there.

The one piece of the puzzle missing for dApp’s dominating the hosting space is web socket access. Front end servers are still needed to interact with smart contracts.

My hope is that EOS evolves into true global OS and allows smart contracts to present socket access to the outside world, similar to what AWS do with lambda functions. Or another chain steps up and does this for us and as EOS has cross chain communication built in, the EOS ecosystem will still thrive.

Again great post and here is too the future.

We should use cryptocurrencies because it's a step in the right direction for global trade where everyone can be involved. Send Money to anyone, anytime, anywhere in the world, almost instantly, with no middle man, no banks and with little or no fees.

Yes this is a good use for crytpocurrencies.
But this was about blockchain and Dapp's.

The 1st step in replacing the existing financial system is getting people paid in the new one (crypto) Dapp's are the 1st step in this.

So to fulfill the dream of removing the printing of currency from nation-states to the people, we 1st need to pay people. It looks like the 1st ones to get paid will be content creators. Then we need to get merchants to accept it so the content creators can travel, buy food, pay rent etc...

This is a whole movement. I support the concept you are talking about of moving money around the world, but please don't only focus on that.

Thank you.

Steem on !!!!

for me the idea of dapp is a hope of freedom. we are never truely free till now. maybe someday. the idea of dapp is more appealing than the dapp itself.

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