What is DApps?
Imagine if the spare capacity of computers around the world can be utilized to serve business and people. The definition of Store of Value (SoV) has been redefined by Bitcoin and other cryptocurrencies, contributing to the future of applications in the form of Decentralized Applications (DApps).
Decentralized application (DApp) is an application on a P2P network of computers than a centralized server. DApp is developed on a blockchain that makes it safe and secure. The software program is designed on the Internet where consensus is the control rather than a single entity.
The total number of downloads of Apps in 2017 was 178.1 Billion and is expected to grow to 258.2 billion by 2022 with revenues touching $189 billion by 2020. The DApps focus on decentralized networks will cause a paradigm shift in the industry’s software models. The distributed, resilient, transparent, and incentivized applications will transform technology, especially the app industry.
The DApp is governed by autonomy and the changes must be decided through consensus or majority of the users. The open-source code will invite scrutiny and therefore improve the features of DApps. Developers and enthusiasts across the world can create open source community projects.
The records are stored on a public and distributed ledger that is immutable and unhackable. This means that DApps run on a cryptographic network, without a central server or a network hierarchy. This means that all nodes are essentially equal and accessible to all participating nodes of the DApp.
The DApp will allow an incentive-based system that rewards participation of network nodes in the DApp. The validators of these blockchains must be incentivized with crypto-tokens in terms of native tokens. Crypto-tokens or coins that are native or non-native can be used for in-app purchases.
Every decision in the DApp is subject to a protocol which is implemented as a cryptographic hashing protocol; Proof of work & Proof of Stake. Since DApp is autonomous, these protocols help achieve consensus. The decision making and governance are based entirely on the consensus mechanism of the DApp.
Monetizing Your DApps!
Launching your Token
The ideation for the requirement of the token must be defined in terms of core functionality, network access, and profit distribution mechanism. The AML, GDPR and KYC compliances must be strictly followed for the token or coin to be considered secure.
The commissions from each successful auction will prove to be a successful revenue model. The right amount of commissions must be charged to your users, as the users might be poached by a competitor who has lower fees.
Freemium services are DApps that will have a free version and a premium version. Users can operate the DApps at the premium level and skip efforts to level up in a game or close an advertisement. These are targeted at people who would pay a premium for comfort.
The DApp membership will be based on subscription to the DApp services. These can be either Time-based or Usage-Based. Adding functionalities to smart contracts allow paid members to have additional functions.
Advertisements are the least popular method, however, you will be able to offer an array of slots in the smart contract for companies to advertise. These are represented by pixels in the front end of your DApps. Companies can use the pixels in order to advertise their brand.
You can ask donations from generous users for the updates and maintenance of the DApp. These donations can be used for the implementations of new features and upgrades in the DApps. This will allow the DApp to be up to date at all times.