A decentralized system is the best thing about blockchain, among all allowed parties, with no need to pay middlemen which saves time and makes all your business easier. Despite its drawbacks, blockchain is still considered faster, cheaper and more secure than traditional systems, which is why banks and governments are turning to it.
Smart Contract
Before we go into discussing Dapps, we will discuss smart contracts first, because smart contracts are computer protocols that are meant to digitally facilitate, verify, or enforce negotiations or contract performance. Smart contracts also allow for credible transaction performance without a third party, i.e. run alone with the terms of the agreement between the buyer and seller written directly into a line of code. The code and agreements contained therein exist throughout the distributed and decentralized blockchain network so transactions are traceable and irreversible. What’s more, a smart contract not only defines the rules and penalties around a deal in the same way as a traditional contract, but also automatically enforces those obligations.
IBM vice president for blockchain technology, Jerry Cuomo, believes that smart contracts can also be used in every chain from financial services to health to insurance.
Decentralized Application
Before discussing Dapps further, we should familiarize ourselves with the underlying technology –blockchain. Put simply, a blockchain is a ledger of records organized into ‘blocks’ linked together by cryptographic validation. Meanwhile, the decentralized application (dapp) itself is an application built on a decentralized network that combines smart contracts and a frontend user interface. So, open source software that utilizes blockchain technology is called Dapps, because Dapps is an implementation of a smart contract.
Dapps is a peer to peer (P2P) application, does not have a middleman / intermediary so that users can conduct peer to peer transactions directly between them. In addition, Dapps also has various benefits that can be developed, including:
- Zero downtime – once the smart contracts are implemented on the blockchain, the network as a whole will always be able to serve clients who wish to interact with the contract. Therefore, malicious actors cannot launch denial-of-service attacks targeted at individual Dapps.
- Privacy – You don’t need to provide real identity to apply or interact with Dapps.
- Resistance to censorship – no single entity on the network can block users from sending transactions, implementing Dapps, or reading data from the blockchain.
- Complete data integrity – the data stored on the blockchain is irreversible and undeniable, thanks to the cryptographic system. Malicious actors cannot fake transactions or other published data.
- Trustless computation/verifiable behavior – smart contracts can be analyzed and guaranteed to be executed in a predictable way, without the need to trust a central authority. Of course this is not justified in the traditional model; for example, when we use an online banking system, we must trust that financial institutions will not misuse our financial data, destroy records, or get hacked.
From the benefits or advantages of Dapps mentioned above, we can conclude that there are decentralized applications, there are also centralized applications. Rarely discussed, but the two have differences. Centralized application (Capp) or a centralized application, one server cluster contains all the logic to perform the required steps. The cluster accepts your request, processes it, stores what it needs, and returns the correct response. Generally used in the banking world. Whereas a decentralized application (or Dapp), all nodes on the network accept the logic that you have implemented in your contract. Once a contract is mined, all nodes have the exact same logic, based on the contract, stored on their copy of the blockchain. After you interact with this contract the same signal must be processed with the logic applied in the same way, then save the same data and return the same signal.
Types of Decentralized Applications (Dapps)
Here are some examples of blockchain technology that have been implemented.
Digital Identity
To prevent third parties or other parties from using user data without the user’s knowledge, blockchain users can control their own data. In addition, a decentralized system can also store data to make it more secure. One of the Dapps built on the Vexanium blockchain network in this ecosystem is Trusti.
Game
Verifying and securing digital information, in-game history, tokenized assets, and other digital things can be done by games with a blockchain-based system. This method allows each gamer to have full control over their account and digital assets. There are many different ways to maintain and develop a game blockchain.
Finance
Banks and other financial services are still struggling with outdated financial operational processes, slow settlement of payments, lack of transparency, and vulnerability of security systems. However, blockchain technology can answer these problems.
From a financial perspective, some of the things that can be solved with blockchain technology are like directly connecting banks from different parts of the world without intermediaries in near-instant transactions. This can enable small and medium sized investors to access investment opportunities that were not previously available to them.
Supply Chain
Many gaps are difficult to detect due to corrupt behavior or the attitude of arbitrator workers in the company causing losses, making the supply chain or logistics network very inefficient both universally and globally.
The blockchain network within the company can form a combined Information Technology that simplifies the workflow for stakeholders across the supply chain flow. Blockchain facilitates accurate asset tracking, allows for increased licensing of services, products and software, and ultimately increases transparency on the source of consumer goods, upstream to downstream consumption. If this is implemented, errors are intentional or not can be reduced to zero (0), so the company can achieve more profit than before.
Government and Public Sector
Central and local governments rely heavily on processes that have been passed down from generation to generation, old software, and organizational structures that are no longer efficient. In addition, the public sector needs a high level of security.
Vexanium encrypted ledgers and smart contracts enable governments to build networks, increase responsibility and responsiveness to problems, increase efficiency, reduce costs, and create high-performance government functions with structures that are more secure, agile, and of course cost-effective .
Vexanium Dapps
One of the technologies utilized from smart contracts is decentralized application technology, which means this is also the role of the Vexanium blockchain, which is to become a Dapps platform. Vexanium Dapps means a decentralized application built on top of the Vexanium blockchain network. Here are some of the Dapps that are built on the Vexanium blockchain network.
VEX REX
VEX REX stands for “Resource Exchange” or Decentralized Marketplace for “network resource” in the Vexanium blockchain, REX is also a DeFi (Decentralized Finance in Resource Leasing). VEX REX allows users to lease their network (CPU / NET) resources to other users for 30 days on loan terms.
VEX REX works simply by means of token holders lending their VEX (which has not been staked) or already staked in their own account, while Dapp developers borrow their VEX to ensure they have enough resources for their application to work smoothly without shortage of resource quotas. From this collaboration process, VEX holders receive additional income without doing anything and Dapp developers get almost any free access to unlimited resources. This is the ideal exchange.
VYNDAO
VYNDAO is a DAO (Decentralized Autonomous Organization) which can also be called DeFi (Decentralize Finance) which consists of a decentralized balance sheet of guaranteed VEX cryptocurrency and other cryptocurrencies built on the top layer of the Vexanium Public Blockchain, with the vision of creating a dynamic token ecosystem with benchmark of the real value of world assets.
Currently, VYNDAO is using the Vexanium blockchain network for the development of its platform. In other words, this platform is also registered as one of the Dapps (Decentralized Application) in the Vexanium blockchain network.
This system focuses on providing a decentralized smart token creation mechanism that is reliable, effective and developer friendly. The initial expression of the VYNDAO platform would support the printing and retirement of USD-pegged assets, referred to as USDV.
Trusti
Trusti, one of the Dapps on the Vexanium blockchain network, was created to certify documents, business contracts, or any digital information with the blockchain. In just two easy steps, you can confirm the validity of a digital file on the Ethereum and Bitcoin blockchain. Firstly, Trusti will “paste” unique data (hash data) to a file using the SHA256 method. Second, the hash data will be collected and then reconstructed through the Merkle Tree function. In this way, data and content will be more efficient and safer to be published on the Ethereum or Bitcoin blockchain.
For example, you put a certificate on a blockchain network, so the document cannot be faked. There is already an organization that records personal data, such as membership cards and employees in Trusti. Making it easier for organizations to verify employee data.
Dapps’s Potential in the Future
Going forward, decentralized applications (Dapps) will continue to grow exponentially, after 2020 has brought rapid progress and expansion of blockchain technology and its applications. And this is inevitable, which can make existing practices obsolete. Companies starting to flock to secure a place on the blockchain network is living proof. In addition, the use of Dapps will be more often involved in everyday life. Reducing costs and eliminating middlemen from all personal and business transactions conducted. These applications are expected to take transaction automation and security to the next level with blockchain as the next step forward towards a future world that is united by shared data.