The primary status of cryptocurrency is given to none other than bitcoin. To date, it is the primarily used, widely circulated, and easily available cryptocurrency. Every payment corner of the world now supports bitcoin and this is a big achievement for the platform and bitcoin as a whole. Apart from bitcoin, there are more than a dozen cryptocurrencies available in the market. The second spot is held by another popular cryptocurrency called Ethereum. Second largest circulated cryptocurrency and is now being recognized in most places. The situation of Ethereum has completely changed and the credit goes to various developments on the ethereum platform. From NFTs to decentralized applications and smart contracts, ethereum has come a long way. Use Bitcoin Trader if you want to get started with bitcoin trading.
Well, the journey was not easy as ethereum was launched as the competitor of the number one spot holder that is bitcoin. In this article, we are going to discuss the applications of decentralized applications developed along the lines of Ethereum. The blockchain technology being used by ethereum is very well established and the derivatives which have established themselves in the market are proof of it. So, let us start the journey of Dapps and their applications in the chain.
Security and decentralized nature of ethereum
Every digital currency that is available online can be seen as a source of decentralized applications. The decentralization helped the digital zone to get popular and somewhat independent because it is far away from the reach of the government and other authorities’ intervention. As a result, the investors feel more comfortable dealing in this market and their funds are equally secure on the platform. The sole reason behind the powerful security in this zone is because of the P2P network that is the base of decentralized platforms. This is helping Dapps and other derivatives to outgrow and develop.
Consensus algorithm and related terms to Ethereum
The protocols decide the working of a specific entity. Right now, Ethereum uses Proof of Work which is the PoW algorithm. The several transactions happening on the Ethereum platform are validated using this protocol and as a result, the chain is result-oriented and progress seeker. The protocol of PoW helps the concerned miners to solve complex and intensive algorithms and thus solve the puzzle to get the solved blocks of information. The energy used is massive and thus miners spend a lot of it behind attaining this motive. On every node is a miner that solves the algorithm for the customer and in return charge the same coin or some percentage of the transaction value as a commission.
Scaling ethereum from the decentralized platforms
Though everything seems good for ethereum this is not true. The combination of non-centralized and secure networks has made the scaling of ethereum a difficult task to perform. This will look stupid but this is true. As the nodes involved are many more in number, there is a lot of information and data is also highly accumulated on the chain making it difficult for the smooth processing of the same. The phenomenon is referred to as the blockchain trilemma and it is quite hard when the question of solving this dilemma arrives. Though there is research going on to solve this crucial problem still attainment is somewhat far away from achievement and this will take some more time before it is finally done.
As discussed earlier, the trilemma causes a lot of problems with its scaling and other operations. For scaling Dapps though there are options available in the form of several platforms. Some of the names of platforms are Plasma, the two-way peg process and many more that are constantly working towards solving the issue of scaling Dapps out of the ethereum blockchain.