Global Fintech and Crypto Boom Is Leading to dApps and Smart Contracts Adoption

Consumers and businesses are searching for better ways to interact. Decentralized applications, or dApps, offer a promising opportunity to leverage the benefits of technology. But what are dApps anyways? In simple terms, they are just like the apps you use on a daily basis but they might not be controlled by a single or centralized entity. Meanwhile, so-called smart contracts are blockchain-powered snippets of code that are executed as long as certain conditions are met.

dApps or Decentralized Applications Could Be Unstoppable

But what on Earth does all this have to do with our daily lives? If you’re like most folks, then all you care about is a seamless user experience. In other words, you couldn’t care less if something is a dApp or an app as long as it serves the purpose. But what arguably makes dApps better is that they cannot be turned off or shut down by a single authority. So it is hard or even impossible to completely censor all content or functions of a dApp in case of a conflict of interest. Now what about these so-called smart contracts?

Well, smart contracts are just a fancy name given to something that could be referred to as stored procedures, according to prominent Ethereum developer Vlad Zamfir. But to keep things exciting, we call them smart contracts. When you commit to one of these, then the terms and conditions of such contracts will only be carried out if certain conditions are satisfied. For instance, a yield-generating crypto account might issue rewards after a users’ funds have been deposited and maintained in a particular account for an extended period of time.

Decentralized Prediction Markets Gaining More Users

These days, you might have heard of so-called prediction markets where people bet or try to predict the outcome of future events. These types of apps can be shut down if controlled by a centralized entity. However, if they are decentralized applications or dApps, then they could be unstoppable because they cannot be shut down by a single user or a small group of users. While this can be dangerous if the nature of the content is problematic, it is also quite powerful.

If there is a certain kind of activity that users want to carry out without asking for permission or obtaining authorization, then properly implemented dApps can be an immensely powerful tool. Currently, the development of dApps is still in its early on nascent stages. And a lot more needs to be done in terms of technical refinements and onboarding mainstream users. Most people may also not fully understand related terms like smart contracts due to their technical nature.

However, we need not know how to fly a plane if we want to travel. We also do not need to build planes from scratch. Similarly, as long as we can harness the benefits of dApps and Web3 technologies, then we are all set. We just need to learn how to become competent users of a system!