Typically associated with the Ethereum project, a decentralized application, or DApp is an application that runs on a peer-to-peer network of computers as opposed to a single computer. The key benefit of this is, users of the network do not depend on a central computer in-order to send and receive information.
In-order to fully understand the difference between a decentralized application and a centralized application, let us consider some examples of centralized applications such as: Facebook, Twitter and YouTube. These are all examples of centralized applications, because in-order to use them, the user is dependent on a network owned and operated by a central entity. This is in contrast with a decentralized application, where the user is not dependent on a central entity to send and receive information.Even though a DApp does not necessarily require a blockchain from which to operate on top of, most DApps harnesses the power of blockchain technology using what is known as, smart contracts.
Smart contracts are self- executing contracts designed to enforce the terms of an agreement. For example, if you want to purchase a house, this process would involve multiple third parties such as estate agents and lawyers, who would settle the purchase for you. However, with the use of a smart contract, the process need only involves the buyer and the seller. Once all the conditions are met, the smart contract would execute independently of any third party.Smart contracts can be termed as the most utilized application of blockchain technology in the current times. Using smart contracts in place of traditional ones can reduce the transaction costs significantly. Ethereum is the most popular blockchain platform for creating smart contracts. A smart contract is an agreement between two people in the form of computer code. They run on the blockchain, so they are stored on a public database and cannot be changed. The transactions that happen in a smart contract processed by the blockchain, which means they can be sent automatically without a third party. This means there is no one to rely on.
Smart contracts are automatically executed once the conditions of the agreement are met. This means there is no need for a third party, like a bank, a broker or a government.Smart contracts are capable of tracking performance in real time and can bring tremendous cost savings. Compliance and controlling happen on the fly. In order to get external information, a smart contract needs information oracles, which feed the smart contract with external information. Another advantage of blockchain technology being incorporated into smart contracts is flexibility. Developers are able to store almost any type of data within a blockchain, and they have a wide variety of transaction options to choose from during smart contract deployment. Smart contracts eliminate many operational expenses and save resources, including the personnel needed to monitor their progress.
Private key generation and secure management
Mnemonic phrase generation and secure management
Wallet address generation
Uploading private keys and mnemonic phrases generated by other wallets
Facility to create addresses to receive digital assets
Facility to create addresses to transfer digital assets
Facility to check the balance and transaction histories.