Embarrassed By The Speed Of Your DApp? Use DApp Scaling

DApps are the focal point of widespread blockchain adoption. According to the State of the DApps, nearly 4,000 active decentralized applications exist. Some are facing a significant obstacle: the sluggishness of their decentralized applications. This occurs when the decentralized network cannot handle the influx of new users. There is, however, a solution known as scaling.

Given that DApps can function independently of centralized financial institutions, it isn’t easy to imagine a more revolutionary concept in the world of technology. However, DApps, or Decentralized Applications, are far more than that. Their eerie brilliance creates an innovative, secure, and resilient open-source software ecosystem.

In Case You Still Don’t Know: What Is a DApp?

A decentralized application (DApp) is an application that operates on a decentralized network. It combines a smart contract with a user interface on the front end. Users can utilize DApps as they would traditional apps, taking advantage of features such as social platforms, entertainment, and games.

The primary distinction is that user data is stored on a blockchain network. These conditions eliminate the need for third parties to establish transaction and usage terms.

In addition, many DApps are consumer access points to DeFi or decentralized finance. These are financial applications based on blockchain that enable digital transactions between parties. DeFi is a perfect match for crypto, opening the door to lending and investing.

This article explains why DApps are superior to traditional applications in greater detail.

DApps Are BFFs with Ethereum Blockchain

Since its inception, the Ethereum network has been a driving force behind the rise of decentralized applications. Ethereum DApps are applications that operate only on the Ethereum network.

This is because smart contracts have been deployed primarily on the Ethereum network and store data on the platform’s blockchain.

Smart contracts are computer programs that execute transactions automatically when all parties meet certain criteria, eliminating the need for a third party.

To clarify, a DApp is a type of button that enables the operation of smart contracts. It allows two anonymous parties to conduct a transaction without requiring a central authority or middleman. It reduces formalities and expenses, thereby streamlining transaction processing.

Smart contracts are less expensive, faster, and more secure than traditional payment systems. They allow users to save time and avoid conflict. It is, therefore, not surprising that smart contracts have gained popularity.

The First DApp on Ethereum Blockchain

The date, April 22, 2016, marked a turning point for DApps. That day, the first decentralized application (DApp) appeared on the Ethereum blockchain network.

A year later, the rate at which DApps were being created accelerated. Since February 2018, a new DApp has emerged nearly every day.

As stated previously, 4,000 fully functional DApps are currently operational. In addition to the Ethereum blockchain network, Cardano, Solano, and Polkadot have introduced decentralized applications that employ smart contracts.

What Do DApps Require?

Speed

The primary objective of every product owner is to create a successful product. However, the adage cautions, “Be careful what you wish for.” Moreover, this is especially true for dApp development services.

DApps operate on a blockchain network with its constraints. The greater the number of DApp users, the greater the likelihood their performance will begin to degrade.

Nowadays, the speed of an application is the most important factor in deciding whether or not to use it. If a DApp is noticeably sluggish, users will likely abandon it in favor of a faster alternative.

Congestion

All programs operating on the blockchain network require processing power. DApps require more computing power than traditional apps. When a single DApp consumes excessive computational resources, it causes a network bottleneck.

This causes a multitude of pending unconfirmed transactions in DApps. Eventually, DApp developers will resolve this issue, but that day still needs to be fixed.

Is DApps Scalable?

The development of DApp technology is still in progress. It indicates that the product owners have sprung into action to find a solution to the lagging issue.

It requires figuring out how to speed up transactions and increase throughput (the number of transactions per second). All of these factors should prevent DApps from becoming too slow.

How they will do it is a million-dollar question. The obvious answer is “by scaling.”

A scalable app is a blessing. It entails a quicker speed, greater adaptability, and the capacity to add new features and functions.

But How to Scale a DApp?

First, it is important to note that there are concurrently two types of scaling: on-chain and off-chain scaling.

The most prevalent on-chain scaling recommendation is to improve the network’s base layer throughput by increasing the amount of data that can fit within each block.

Improving the scalability of existing blockchain base layers is improbable, unfortunately.

Creating additional layers of transactions that can rely on the core blockchain is the solution to this issue. This is how off-chain scaling is implemented. It involves combining multiple payments into a single transaction and developing payment channels and sidechains.

Off-chain scaling aims to reduce the role of the primary blockchain to that of a trust and arbitration layer.

Best Practices in Scaling Ethereum DApps

State Channels

State Channels allow users to conduct peer-to-peer transactions “off-chain,” transferring messages to the main chain only when leaving the channel. They are similar in design to Bitcoin’s Lightning Network.

Essentially, they are payment channels where users transact value off-chain and then return to the main chain to settle the track. This is straightforward in terms of functionality.

Casper

Miners must expend energy to solve a cryptographic equation and mine a block using PoWTo solve a cryptographic equation and mine a block using PoW, miners must expend energyTo solve a cryptographic equation and mine a block using PoW, miners must expend energy. If they solve the problem, they receive the reward, but the process is very energy-intensive (and will continue to require more and more).

This is both costly and ineffective. Casper is a protocol for converting Ethereum’s Proof of Work (PoW) model to Proof of Stake, in which “validators” replace miners and “validate” (instead of “mine”) blocks onto the blockchain network.

Sharding

Sharding is the process of horizontally partitioning a database to distribute the load. Sharding reduces network congestion and increases the number of Ethereum transactions per second by generating additional chains known as “shards.”

There is, however, a disadvantage. Before it can be implemented, sharding requires extensive research and testing, making it one of the most complex solutions on the Ethereum network.

Plasma

Plasma is a scaling technique that conducts transactions “off-chain,” or away from the main decentralized Ethereum network. From the initial blockchain, multiple blockchains (called “child chains”) can branch off (referred to as the “root chain”).

Consequently, each child chain can process and store its transaction records while still relying on the security provided by the root chain.

Raiden

Raiden is an off-chain scaling solution that lets nodes keep track of each other’s transactions without requiring the root chain to verify each transaction. Between two nodes, a “state channel” can be constructed. It is a communication channel between users.

To ensure immutability, “messages” are transferred between the two nodes in the form of transactions and signed by both parties.

Key Takeaways

Some argue that a vision of the future in which many things are decentralized is utopian. It is the furthest thing from the truth. DApps are proving to be a future technology, bringing various innovations and advancing blockchain technology.

There are costs associated with this expansion. Product owners who want their DApps to become household names should consider DApp expansion. Scalability is crucial to managing high demand. Improved resource management is required.