Nowadays, Internet users don’t have total control over anything they’re sharing on websites.
Ethereum is unique for its attempt to use the blockchain as a mean to fix whatever its developers think is problematic about the current internet’s design.
It’s something like a “decentralized appstore” where anyone can publish their ‘dapps’, which compared to today’s apps don’t need an intermediary to launch or to edit a user’s information.
Dapps are able to connect providers and users directly.
For instance, once a user publishes a message, even the developers who created the system can’t delete it.
However, there’s not a clear definition of a dapp, as it’s something new yet.
Some of the main characteristics are:
- they’re open source
- they don’t have a central point of failure.
The three types of dapps
The ethereum white paper divides dapps into three types:
1. Money management apps
A user in order to settle a contract with another user has to exchange Ether. The use of the network’s distributed nodes facilitates the distribution of the data.
2. Money-involving apps (they require also another piece)
This type of app combines money with information from outside of the blockchain. These smart contracts rely on known as ‘oracles’. Oracles provide up-to-date information regarding the outside world.
3. “Other” category apps, like apps which includes governance systems and voting.
Cryptocurrencies can perform well without the need for any financial authority. Is it also possible for other types of organizations or companies?
Decentralized autonomous organizations (DAO) are one challenging form of dapp.
The aim is to form a company without a leader, with the only program rules at the beginning regarding the way the members can release company funds or vote and that’s all is needed.