The Future of Crypto Apps: A Revolutionary Shift Awaits
Written on
Chapter 1: The New Wave of Crypto Innovation
A groundbreaking change is approaching the realm of crypto applications. Unlike many current offerings, this new wave aims to address genuine issues in the industry.
> Let’s be honest, a lot of today’s crypto solutions are largely ineffective. Take NFTs, for instance.
Non-Fungible Tokens (NFTs) are primarily composed of digital images whose worth is predominantly influenced by speculative trends. For the most part, they lack practical utility and can easily lead to scams, with just a few exceptions. However, despite the shortcomings of many NFT applications, the underlying technology holds significant potential that could disrupt numerous sectors.
But today, our focus isn't on NFTs.
Instead, we are delving into something much more thrilling.
The advent of Non-Fungible Apps (NFAs) has the potential to permanently alter the landscape of crypto applications. Imagine, rather than merely tokenizing mundane images, we could tokenize entire applications, thus fostering genuinely valuable new economies.
Section 1.1: The Challenges of Current Crypto Applications
Crypto advocates often claim that decentralized applications (dApps) are immune to censorship and shutdown. However, this assertion is misleading.
In truth, the decentralization aspect of dApps is often overstated. To grasp how NFAs can change this narrative, it is essential to first understand the composition of decentralized applications.
Subsection 1.1.1: What Are dApps?
Decentralized applications, or dApps, operate on a blockchain. Developers write code that facilitates various functions and publish it as a transaction on the blockchain, creating a contract that users can interact with.
This is what we call a smart contract.
The advantage here is that once the code is published on the blockchain, the developer loses ownership, making it accessible and immutable for others to utilize.
Consequently, apps powered by smart contracts lack centralized components.
However, this raises a question: How can dApps evolve if smart contracts are immutable?
The answer lies in the ability to replace an old smart contract with a new one. dApps can utilize multiple smart contracts, allowing for upgrades while keeping the previous versions permanently stored on the blockchain.
Thus, what comprises a dApp?
Section 1.2: The Anatomy of a dApp
A dApp, similar to conventional applications, consists of three main components:
- Front end: The user interface typically accessed through a web browser.
- Back end: Unlike traditional applications, dApps have smart contracts that define the app's functionalities.
- RPC API: This interface connects the front end to the blockchain, enabling communication.
In the past, applications were tightly integrated, making debugging challenging.
Chapter 2: The Implications of Centralization
The first video, "Is Bitcoin Ready For THIS? Jeff Garzik Reveals A Game-Changing Revolution!" discusses the upcoming changes in the crypto landscape.
The day of August 8, 2022, marked a significant turning point when the U.S. government blacklisted Tornado Cash, a crypto mixer that uses zero-knowledge proofs to facilitate private transactions.
While the smart contract of dApps is embedded in the blockchain and thus immutable, their user interfaces depend on centralized hosting services. When Tornado Cash was blacklisted, access to its interface was swiftly cut off.
This raises an important question: Are dApps genuinely decentralized?
Section 2.1: The Centralization Dilemma
To deploy a dApp's interface, developers must rely on hosting services like AWS or Microsoft Azure. These companies can easily shut down a website if mandated by regulators.
If a traditional bank were to be blacklisted, users would instantly lose access to their accounts, highlighting the risks of centralized hosting.
Although smart contracts can sometimes be accessed through command lines, this requires a technical background that most users lack. If developers create a new front end to restore access, it often leads to reduced adoption and the eventual failure of the application.
Section 2.2: The Solution: NFAs and Decentralized Hosting
Non-Fungible Apps offer a solution by allowing smart contracts to govern all aspects of the application, including the hosting of its interface.
In technical terms, this setup resembles a ‘Serverless.yml’ file, streamlining the backend management to the cloud providers. In this scenario, the power lies with the smart contracts rather than centralized entities.
With the rise of decentralized content delivery networks like Fleek Network, crypto companies can launch their projects on decentralized hosting platforms. This innovation is crucial for achieving true decentralization in crypto applications.
As NFAs gain traction, they will enable communities (DAOs) to collaboratively control and upgrade the code, ensuring that these applications remain uncensorable and beneficial for all users.
The future for crypto applications, including DeFi and decentralized exchanges, looks promising, as this approach will likely become the standard design framework.
Moreover, the ability to tokenize entire apps will pave the way for app marketplaces, fostering vibrant economies around these applications.
Exciting times lie ahead!
However, it's important to remember that without decentralization, crypto remains as ineffective as a mop trying to clean a beach.
A Final Thought
If you found this article insightful, consider subscribing to my newsletter, where I explore complex innovations and provide the latest updates on crypto and AI technologies.
Stay informed about the advancements shaping our future and be prepared to capitalize on this knowledge.
TheTechOasis, the newsletter simplifying Tech & Crypto
Landing page of The Tech Oasis newsletter about technology, crypto, and markets in a digestible format.
www.thetechoasis.com
Join today! Don’t hesitate to enhance your knowledge.