Why dApp is important for finance industry

Updated on 27 December 2022

By Eliana Ward

13 min read 16 views

Updated on 27 December 2022

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Introduction

Dapps are the backbone of the blockchain industry. Most people don't know how it works but a lot of people use dApp without even knowing what they are. In this article, I will tell you why dApp is important in the finance industry and how it is manipulating the economy by using smart contracts.

The tech-savvy world is increasing day by day and shifts in the finance sector have taken a whopping 60% of the total market. This explains the importance of Dapp continuing to grow in this industry.

What is dApp?

Dapp is a decentralized technology that helps in creating apps. Dapps are android applications which can be downloaded from the web or even from a desktop system. These dapps can be stored in any computer or mobile device and this helps in having access to the same application on multiple devices without having to download them again.

There are many people who believe that the current finance industry is corrupt and this has resulted in a lot of fraud. However, as per a study performed by The Economist, 1/6th of the revenue generated by banks comes from private clients. Most of these clients who come to banks feel that there is nothing wrong with using their money to perform everyday transactions such as buying groceries, getting their children admitted in schools etc.

Importance Of Dapp

There are many startups right now which are doing something different in the finance industry. Moreover, businesses are trying hard to find ways to make banking easier for the customers and more profitable for the business and our reach to dApp Development Companies. Dapp is one such "Decentralized application" which might transform the whole finance industry. As per the blockchain market report released by Coherent Market Insights, "the global blockchain market size was valued at USD 411.5 million in 2017 and is anticipated to grow at a CAGR of 61.7% during the forecast period 2018-2022".

Dapp is a decentralized application that runs on top of Ethereum blockchain. Dapp is not limited to any particular kind of application but has the potential to run on every type of technological platform like Android, iOS, cross platform or through any other browser. A Dapp resides on a server called a node and consists of smart contracts written in Solidity programming language which are used to automate the system operations.

Conclusion

Dapp is important for the finance industry because it will help to connect the economies of different countries and will make the people connected through Dapp. At present, many countries are still developing, and each country has some bad needs. If a developed country provides what the other needs, then both of them can develop rapidly.

Know about - ethereum dapps development company

The blockchain and cryptocurrency are innovative technologies that are changing how the world operates. The decentralized network structure and consensus mechanism of blockchain technology has inspired many entrepreneurs, business leaders, and developers to create a Dapp. Dapp provides equal opportunity for every individual by eliminating a centralized authority. The only competitive edge that an individual or company can seek is based on the value and merit of the products and services provided.

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