Learn about dApps

How Do Dapps Work?

Decentralized apps are taking up a large space in the world of developers and cloud-based applications, replacing traditional apps with their attractive decentralized features and distributed ledger systems. In addition to this, they are providing developers with a better way to monetize their coding powers and retain the control and governance of their Dapp. But how are Dapps achieving this? How do dapps work? We are here to answer this question for you. 

What are Dapps?

Dapps are applications that run and are governed by a network of computers and blockchain smart contracts. These are based developed and deployed on the Ethereum blockchain. However, lately, developers are developing apps based on other blockchains such as Binance, Polygon, Polkadot, etc. There is no single authority that controls the working of dapps or regulates the operations being performed on them. This is one of the reasons why users are getting massively attracted to the world of dapps and decentralization. 

In contrast to the traditional apps we use on a daily basis which are controlled by a single authority at the back, dapps run on a peer-to-peer network of computers where users can either consume, feed, seed, or do all of the above operations on the dapp. The most striking feature of dapps is that once a transaction is performed on the dapp, basically on the blockchain, there is no way to undo that. 

If we talk about the advantages of dapps, we can count a number of advantages. Some of them that prominently stand out are the decentralized nature, user privacy, and freedom of expression. Dapps do not require users to enter their personal information on the blockchain to carry out transactions between two points. These unique applications use smart contracts to facilitate transactions, keeping the user information completely confidential. 

Secondly, when it comes to the activities on existing social networking channels, there are a lot of regulations related to user behavior and it takes a split second for a user to get blocked by the platform for unruly behavior.  This is something that’s turning the attention of users toward decentralized social networking platforms. Moreover, the digital infrastructure required to develop dapps is readily available, especially in the case of the Ethereum blockchain. So, the only thing that the developers have to focus on is finding innovative solutions to serve users through their dapps. 

Now, coming to the limitations of dapps, there are only a few drawbacks. Firstly, the user interface can be a little tricky, especially for the newly-onboarded users. Secondly, if the dapp requires a load of computations, scalability can be a major concern as long loading times may lead to network congestion. Lastly, as mentioned above, once the code is fed into the blockchain, it is almost impossible to make any modifications. Therefore, adding new and improved features is a major concern for dapps. 

How do Dapps work?

Dapps, as mentioned above, do not run on a centralized server. While the internet is still needed to run the dapps, the computational power doesn’t belong to a single computer or a single person. A network of contributors based on the blockchain facilitates the working of dapps. These contributors can either feed the data or download the data from the blockchain by paying a certain amount of fee in the form of cryptocurrencies, usually ETH if the dapp is based on the Ethereum blockchain. This fee goes to the developers as well as the blockchain. 

Can you make money with Dapps?

Yes, it is possible to make money through dapps. There are several ways of making money through dapps such as transaction fees, subscription fees, premium features, digital assets, and so on. Charging a transaction fee and creating digital assets such as NFTs, and native tokens are some of the most common ways of earning money through dapps. 

On the other hand, charging subscription fees and premium features costs are some other ways that require developers to do a bit of diligence in setting up the pricing and features model. For example, you can set up a subscription model if your dapp is offering a solution that users require only one time. Similarly, while setting up free and premium subscriptions, developers have to be very careful in choosing the features that should go in a free version and a premium version. 


Dapps are blockchain-based applications that shift the power from a single authority as in the case of centralized apps, to a network of contributors and smart contracts. These smart contracts execute themselves only when a pre-defined set of conditions are met. Also, smart contracts rule the transactions between two users. So, there is no concern about the personal information of the users getting compromised. Planning to explore some of the best dapps in Web3? Check out dapps.co now.