Are Dapps the next big investment opportunity?
Dapp is a short form or abbreviation for a “decentralized application.” The difference between regular apps and Dapps is that these applications are built on a decentralized network that combines a smart contract with a frontend user interface. With the help of blockchain networks like Ethereum, which make them accessible and transparent, the functioning of Dapps has become very interactive and easy. Dapps hold a lot of promise as an investment strategy. Here are some of the benefits people can get from investing in the growth of Dapps as a concept and an asset:
- Complete removal of transaction fees when transferring funds from one channel to another either for e-commerce or personal uses
- Users have complete control of their data and can do whatever they want with it
- Completely open-source software
- Censorship-proof to avoid interruptions and investigations from various governments and State-sponsored organizations
- Generates income for users in a passive manner
- No central authority or monopoly on the usage of apps
- Readily scalable across industries, workspaces, and corporate houses
- Crypto is readily accepted as payment for services because it is based on the blockchain network predominantly
Due to the technology provided to the world by Dapps, we have access to DeFi, a new financial ecosystem that is devoid of control from a third party. DeFi runs on trusted and distributed servers across various networks, and hence, it allows everyone to access a very wide range of financial products from any point in the world. The growth of DeFi in the financial sphere can reduce physical location to insignificance. This also means that there will be fewer barriers for people to enter this ecosystem, unlike several others that already exist.
DeFi is just another example of how Dapps can change the world in terms of finances. Dapps also have the functionality to provide P2P marketplaces like eBay,a low where people can sell their goods and services for free. Cloud storage, which has become the future of online storage options in 2021 is also offered by Dapps. P2P markets like the App Store and Google Play are also compatible with the latest versions of various Dapps. All of this functionality is possible through the constant development of the blockchain network, which can help change businesses’ landscapes through decentralization.
However, as good as Dapps sound to the everyday investor, many developers and enthusiasts have raised concerns over various aspects of this technology. The Dapps space is a multi-million dollar market in many countries around the world. Even though they propagate inclusivity, the barrier to entry in the Dapps space is very high in terms of money. These applications are very costly to develop. They also have very poor interfaces and a scarce number of users who are willing to invest their time and resources here. While a multi-million dollar market might sound like a lot, millions are just drops in a bucket in the tech industry. The traditional app markets are worth billions of dollars and have been evolving ever since the tech boom at the beginning of this decade. Competing with traditional apps and app markets is something that not many technology concepts have been able to do, and developers fear that the same fate awaits Dapps too, if the entry-to-market barrier rem