Why Businesses Should Care About Decentralized Apps (dApps)
What are decentralized apps? To be considered a decentralized app or dapp it must meet a set of criteria.
What Are Decentralized Apps?
To be considered a decentralized app or dapp it must meet a set of criteria:
- Open source — it has to be available free and must be capable of modification and redistribution.
- Decentralized — it has to be able to use blockchain and cryptographic tech and there must be some kind of token or cryptocurrency use to incentify users.
- Built in consensus mechanisms for security.
If an application fits all three of these criteria, then it can be considered a dapp.
There are three main ways that a decentralized app can be used to benefit business:
1. A Cheaper Alternative to Cloud Storage
Sia is a blockchain app that utilizes unused hard drive space on a global scale in order to provide cloud storage. At present 1.8 billion people use cloud storage worldwide and the decentralized servers cost 90% less than other providers. For just $2/month a business can access 1 terabyte of space with all files encrypted and the key under their own full control. In addition, no third party can access the storage — it is incredibly secure. In order to gain more storage users can mine and trade the cryptocurrency Siacoin.
2. Good Security and Identity Protection
Identify theft is a huge problem; in 2016 alone around 66% of fraud-related complaints to the FFC were identity theft related. This is something that dapps can help alleviate. Civic, for example, uses blockchain technology to give a secure identity platform. The app has a variety of solutions to protect identity including secure logins, document verification, multi-factor authentication and more. This dapp provides useful tools for businesses needing to verify the identity of employees, freelancers and other workers. Secure login and registration means that only approved workers have access to any sensitive information that is stored.
3. Business Intelligence and Invoicing
Populous is a dapp that runs on blockchain and provides business intelligence and invoicing services. The dapp’s invoicing system offers funding until the user is paid, meaning that invoicing systems are faster, businesses are not waiting long periods for payments and they can manage their budgets more efficiently as a result. The business intelligence program offered by Populus gives its users a lot of data sets and analytical tools with which they can analyze business scenarios, benchmark performance and look at trends. Recorded through blockchain, the data is accurate and secure.
Although blockchain technology is traditionally associated with BitCoin and cryptocurrency trading it has multiple uses and is currently developing new services. The dapps are the largest area of growth and has great potential to offer open source, secure software. It is something that all modern businesses should seriously consider.
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