Understanding dApps and Smart Contracts
A dApp uses a smart contract to run. dApps are the front end of the smart contract. This application is a blockchain enabled website. It is very similar to the traditional website. dApps are decentralized. These applications are peer-to-peer networks which run on hardware devices, like computers, cellphones, and printers. The dApp connects a user directly with the provider and use smart contracts to operate.
The smart contract connects the dApp with the blockchain. The smart contract is developed on the blockchain which makes it safe and secure to transact. A smart contract is a computer code running on top of the blockchain and can create simple tokens. This technology is based on crypto technology. It also contains a set of rules under which parties can agree to interact with each other.
This contract code can facilitate, verify, and enforce an agreement transaction between parties. The smart contract facilitates the exchange of money, shares, and property and much more in a transparent and trustworthy manner. It also contains terms and conditions of mutually agreed contracts between peers.
What happens in smart contracts?
There is an agreement code in the smart contract. The result is being verified by the users on the Ethereum blockchain network. Once the contract is executed it cannot be tampered with or deleted.
To make it more simple:
- dApps are Front end.
- Smart contracts are back end coding.
- Blockchain is a P2P network system.