Web 3.0 Decentralized Applications

What are Web 3.0 Decentralized Applications?

Web 3.0 DeFi (abbreviation for Decentralized Finance) Dapps (or decentralized applications) are applications hosted by blockchains that allow users to perform financial operations such as lending, borrowing, mortgaging, loaning, and saving, and more. These platforms operate based on crypto tender (cryptocurrencies and stable coins), and collaterals can include non-fungible tokens (NFTs). Popular Web 3.0 Decentralized Applications include Sushiswap, PancakeSwap, and MakerDAO.



These applications operate based on the concept of decentralization, which makes it impossible for anyone to steal user data. However, all the transactions on the network are visible without revealing the real identity of the user. All the information is spread across many devices, meaning that even a refrigerator can contain the information of DeFi transactions if it is an IoT (Internet of Things) device.



The Technology Behind Web 3.0 Decentralized Applications

Decentralized Applications development obviously does not include centralized servers. So, it is best to forget anything related to servers and server storage protocols before reading further.

Blockchains form an inseparable part of any DeFi platform development. While Ethereum is the currently popular network used by most DeFi Dapps, other networks such as Hyperledger Sawtooth, HyperLedger Fabric, EOS, and Polygon can also be used.

The front end of a Decentralized Application development is written using programming languages such as HTML, CSS, and JavaScript, which have been extensively used for existing Web 2.0 applications.

The Web 3.0 is part of a DeFi Dapp is a JavaScript library where the frontend interacts with the blockchain where the application is hosted. Nodes help computers in connecting to the blockchain to run such applications, and there are even third-party node providers such as Infura.

Smart contracts form an essential part of decentralized finance Dapp development. These are lines of code written in Solidity that execute automatically when the conditions provided to them are met. They also record transaction history, which makes them an attractive option for decentralized finance companies.

Ethereum Virtual Machine (EVM) is the technology behind the execution of smart contracts and updating information accordingly on the blockchain. Although based on Ethereum, it allows the running of smart contracts in various blockchains.



Advantages of Web 3.0 DeFi Dapp Development

Due to the inherent nature of DeFi Dapps, the privacy of the users is preserved, and monopoly by a few powerful companies is prevented. Now, users dictate how their data is used, so inadvertent advertising based on purchased data sets will never be possible.

With blockchains hosting these Dapps, security will never be compromised as data gets distributed to devices across the world, and attempting to steal information might end up as a costly failure.

Interoperability is another great feature of DeFi Dapps as users can access multiple applications from a single platform (much like super apps in the Web 2.0 ecosystem), hence ruling out the time between switching applications.

Since blockchains are decentralized, no one needs to authorize people to use the platform. This makes it possible for anyone to create and access DeFi platforms irrespective of gender, location, demographics, and other social barriers

References 

[1] <marketing>, '<Web 3.0 Decentralized Applications – The Path to Tomorrow’s Financial World>' (online, <2022>) <https://www.blockchainappfactory.com/blog/web-3-0-decentralized-applications-the-path-to-tomorrows-financial-world/>.