What are dApps?

Most beginners face the challenge of picking the best-decentralized gambling apps and casinos out of hundreds of online available on the web. Luckily, you won’t have to go through that trial and error period searching for the best gambling dApp because dappGambl already did the work for you. Here’s a list of the best dAppCasino list.

Decentralized casinos and dApps are still a new concept yet gaining traction faster than fire in the wild. By now, you have a rough idea about dApps. Think about software with a network of data points or nodes communicating. To understand the concept of decentralized casinos and gambling apps, we need to discuss a broader field that includes software centralization and distribution. Let’s get started.

• Deterministic: These are built on a set of rules that are predetermined and enforced by the blockchain. Thus, the outcome of any given game is determined by the code and cannot be changed by the operator. One example is Edgeless, a decentralized casino that offers a range of games including blackjack, dice, and slots. Edgeless uses smart contracts to ensure that all games are fair and transparent and that the house edge is kept to a minimum.
• Isolated: These are designed to run independently of the blockchain, and do not rely on smart contracts. This can make them faster and more efficient than others, but they may not offer the same level of transparency and security. One example is FunFair, a platform that offers a range of casino games including slots, roulette, and baccarat. FunFair uses its own proprietary technology to run games on its platform, but all outcomes are still verifiable on the blockchain.
• Turing Complete: These are able to perform any computation that can be done by a Turing machine, which makes them highly flexible and versatile. Thus, they are ideal for complex gambling applications that require a high degree of customization. One example is Augur, a decentralized prediction market that allows users to bet on the outcome of real-world events. Augur uses a complex set of smart contracts to facilitate bets and payouts, and all data is recorded on the Ethereum blockchain.
• Centralized: Centralization doesn’t only refer to a central system of authority, like government. There are communication end-points called nodes in software, such as dApps, and online casino platforms. Only a single node exists for a centralized system, establishing communication among all system users. Centralized nodes have a single communication point, hence easy to control. On the contrary, they are hacker-friendly, meaning if the central client-server is hacked, all other users will be affected too. Similarly, the main system administrator can effect change on all users with just a single click of the button. Traditional applications like Facebook, banking systems, and Alibaba operate on this model, explaining why they experience total system downtimes occasionally.
• Distributed: Distributed software systems are more advanced than centralized ones. They were mainly developed to offer temporal solutions to the challenges of centralized software. How they work is that communication is spread across multiple nodes meaning there is no single communication point in the system.
• Decentralized: Lastly, we have decentralized systems, as our primary focus area. Decentralized systems are made up of numerous data centers connected to various nodes, eliminating the need for a central server. This makes the network sophisticated; hence, it is impossible to tamper with or pull it down. Even if one node is affected, the remaining ones will keep working, meaning the system will remain stable.

Decentralized Casinos and dApps

Decentralized casinos are built on this concept, which is an advantage as it eliminates the need for mediators. At this point, smart contracts come in to implement any requirements needed for a successful transaction. Smart contracts may be a challenging concept for many, but in a simple form, they are automated agreement implementation.

In traditional online casinos, you’d be required to sign up, verify your account and make a manual deposit before you could start playing. Then, after making profits, a player would initiate a withdrawal, which would have to be approved by the system administrator for processing. So if the admins were busy or facing high transaction rates, players would have to wait longer to receive their cash. Fraudulent operators would also make it hard for one to cash out, hoping that you would continue playing and eventually lose your money to the house. At its very basic, decentralized gambling is about eliminating such custodial elements of online betting.

Decentralized wagering incorporates digital coins for transactions on the immutable, trustless encrypted blockchain network. This entire process ensures high-level integrity for gamblers as their bets remain secure and fair. Each transaction is visible on the transparent blockchain network system. decentralization also removes standard fees that players have to foot while playing in traditional online casinos. Since this is still a new technology, perhaps we are yet to experience the full potential of decentralized casinos and gambling dApps. For now, there is tough competition between early entrants such as BC.Game, MBet, Woltbet, and Moonbet, as each of them, strive to offer the most outstanding services to their customers. On the hand, the rise of metaverse casinos and dApps such as FUN and Decentral can’t be ignored too.

Centralized and decentralized apps are two different types of applications with contrasting architectures, data storage, and control. While centralized apps have been the norm for a long time, decentralized apps are gaining momentum due to their increased security and transparency.

Centralized apps, as the name suggests, operate through a central authority, where data and information are controlled and managed by a single entity. Examples of centralized apps include social media platforms like Facebook, Twitter, and Instagram, as well as online marketplaces like Amazon and eBay. In centralized apps, user data is stored on a central server, which is managed and controlled by the app’s owners or administrators. Since these apps have a high degree of control over user information, users have little say over how their data is used.

On the other hand, decentralized apps are designed to operate on a decentralized network, where there is no central authority controlling the app. Instead, they use blockchain technology, which is a distributed ledger system operating on a peer-to-peer network. Decentralized apps are highly secure and transparent, as the data is stored across multiple nodes on the network. Thus, no single entity has control over the data. Decentralized applications can be built on various blockchain platforms such as Ethereum, Binance Smart Chain, Polkadot, Cardano, and more. These platforms provide the infrastructure for developers to build various use cases, including finance, gaming, social media, supply chain management, and more.

One of the main benefits of decentralized apps is that they offer users greater control over their data. Since there is no central authority controlling the app, users have the power to manage their data and control how it is used. Decentralized apps also offer greater security, as the data is distributed across multiple nodes, making it difficult for hackers to compromise the system. Additionally, there is less risk of censorship or manipulation due to the absence of intermediaries.

Thus, the difference between centralized and decentralized apps lies in their architecture, data storage, and control. While centralized apps have been the norm for a long time, decentralized apps are gaining popularity due to their increased security and transparency. With the rise of blockchain technology, we can expect to see more dApps in the future, offering users greater control over their data and a more secure online experience.

One of the key technologies that enabled dApps to function is blockchain, which is a decentralized digital ledger system that ensures secure and transparent transactions. In this section, we will explore the relationship between these apps and blockchain technology, and how they utilize blockchain technology to create a decentralized network to store data and transactions securely and transparently.

What is Blockchain Technology?

Blockchain technology is a distributed database that consists of a continuously growing list of records called blocks, which are linked and secured using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. The decentralized nature of blockchain implies there is no central authority controlling the network, and all participants have a copy of the ledger.

The concept of a decentralized ledger is one of the key features of blockchain technology. Unlike traditional centralized ledgers, which are controlled by a single entity, a decentralized ledger is distributed across a network of computers. Thus, there is no single point of failure, and the ledger is immutable and tamper-proof.

The use of cryptography ensures that transactions on the blockchain are secure and transparent. Each transaction is verified by a network of computers, and once verified, it is added to the blockchain. This creates a transparent and secure record of all transactions on the network.

How dApps Utilize Blockchain Technology?

These apps use blockchain technology to create a decentralized network and store data and transactions securely and transparently. Unlike traditional applications, which rely on centralized servers and databases to operate, Decentralized Applications operate on decentralized networks such as Ethereum, EOS, and TRON. Thus, they are not controlled by any central authority or organization, but rather operate on a peer-to-peer network of computers.

Here are some ways they utilize blockchain technology:

Now that we have mentioned dApps several times, we must talk about them in-depth, especially for the sake of our readers coming across this topic for the first time. First, let’s clarify that not all crypto casinos are decentralized platforms. While they may all require you to play with cryptocurrencies, they may not necessarily record all transactions on the blockchain. That means crypto is only used as payment and has nothing to do with how the games are played. Actual gambling on decentralized applications operates on a blockchain network and is 100% powered by smart contracts. The two main aspects of gambling dApps are:

• Payment: Like any other crypto casino, all dApps payments are made in crypto. However, unlike regular bitcoin casinos, dApps mainly support native network tokens. For example, Ethereum dApps use ERC tokens for betting, although they may accept other forms of crypto payments.
• Randomness: Most online casinos use a similar RNG method to ensure their games’ randomness. However, gambling dApps use an advanced blockchain process called fairness provably to guarantee randomness and fairness. You can click this link to read about what is provably fair.

Gambling dApps work hand in with crypto wallets or DeFi wallets to create an automated flow of funds, as per the terms of the existing smart contracts. How it functions is that instead of manually sending funds and initiating withdrawals, users attach their wallets to the gambling dApp. This way, funds can be automatically deducted while betting, and profits sent back in the same fashion. Most decentralized gambling applications, however, still have an option for manual transactions. Attaching a wallet to the dApp allows users to bypass many traditional gambling requirements, such as disclosing their identification and transaction details, since crypto payments are automatically secured and verified by the public blockchain network. Withdrawals can be processed instantly by the power of smart contracts without needing extra verification and authorization. At advanced levels, decentralized casinos and dApps eliminate the element of the house edge in some game categories by allowing peer-to-peer gambling where wagerers stake against each other without having to pay the house.

By now, you understand decentralized apps, but it’s common to be confused about casino dApps and decentralized casinos. dApps, as discussed, dApp casinos are simply software programs operating on a decentralized platform such as the Ethereum blockchain network. Decentralized casinos, on the other hand, offer a gambling environment where every player can view the public ledger and verify the outcome of each game. Decentralized casinos and decentralized gambling applications serve the same purpose, except that one is an app.

Just like traditional casinos, you can play various conventional and modern games like poker, slots, baccarat, blackjack, craps, dice, roulette, scratch cards, lottery, coin toss, and even sports betting. Gamblers can play peacefully with confidence that they can track and confirm their game results through a provable fair system. Early dApps run on ETH, EOS, and NEM, but TRON, QTUM, and NEO are now coming up strongly as dApps alternatives. The total market cap of Ethereum-built dApps stands at nothing less than $13 billion. Considering that the global gambling market is valued at more than $460 billion, Ethereum-built dApps alone take up about 3% of the total industry cap.

If you have read up to this point, you probably have an idea about smart contracts and how they work already. Let’s now get deeper and dissect the working of smart contracts and gambling dApps. A smart contract is a self-executing contract carrying the terms and conditions of a transaction in lines of code. The code is distributed in a decentralized manner across a blockchain network like the Ethereum blockchain and controls the execution of the contract in a traceable and immutable nature. The history of smart contracts dates back to 1994, when the American programmer Nick Szabo first introduced a concept of a self-executable digital set of instructions and protocols.

In gambling dApps, smart contracts increase player operator trust by creating a trustless ecosystem where gamblers can bet anonymously yet safely without the need for a central authority or external enforcement mechanisms. Gambling dApps are developed with smart contracts and deployed to a blockchain network for execution. However, users must have a web or mobile interface to access them. Many other dApps are not necessarily casinos but offer money-making opportunities not far from gambling. Compound, Maker, and Uniswap are among the significant Ethereum blockchain dApps you should know about.

• Compound: Compound, as the name suggests, is a decentralized money market protocol built on the ETH blockchain. Instead of your money sitting idle in a crypto wallet, this decentralized application allows users to earn continuous interest by supplying their assets to a liquidity pool.
• Maker: Maker, commonly called the first DeFi, is an Ethereum-developed financial app behind the stablecoin DAI. It was created to lessen crypto volatility’s impact on DAI and give it stability.
• Uniswap: Uniswap is a top Ethereum blockchain decentralized crypto exchange platform with its own governance token, UNI. Unlike Binance and Coinbase exchanges, Uniswap isn’t run or controlled by anyone. There is also no order book as the system uses an automated liquidity protocol.

Interaction in all the above applications is also made successful by the power of smart contracts. Unlike traditional institutions where banks could hold back onto some clients’ funds and scam casinos would make away with players’ deposits, smart contracts execute each aspect of their agreement as they should and never fail.

As seen earlier, the Ethereum blockchain so far hosts the highest number of dApps. Developers prefer ETH because it already has a large community of loyal users apart from offering robust creation tools. These factors make the development and deployment of a dApp more affordable and efficient on the ETH network compared to newer platforms. However, network congestion issues pose a significant challenge to the future of dApps on this platform. Congestion impacts negatively on the user experience through inflated gas fees. Already, some developers have started to create their dApps on competing blockchain networks EOS and TRON. Research by dAppRadar on the three networks, ETH, TRX, and EOS, indicated that while ETH is leading in the development, TRX,s is fast catching up.

Ethereum is undoubtedly facing intense competition as the preferred platform for dApp development and deployment. When it comes to gambling, speed, and cost are everything. That is why TRON and EOS seem to be winning the appeal of decentralized casinos dApp creators. EOS has zero fees and can handle up to 4000 transactions per second compared to Ethereum, which hardly goes past 30 transactions per second. EOS is also pretty fast, with a speed of up to 2000 transactions every second.

Accepts Most Cryptocurrencies: Decentralized casinos accept most cryptos and altcoins, including newer tokens. So, for example, an Ethereum-based dApp would support nearly all ERC20 coins.

• Anonymity: Crypto transactions are anonymous with zero connection to your everyday life, including banking. Players can enjoy gambling without being monitored by the government or credit providers.
• Privacy: dApps don’t require you to provide your private data or verify your address and ID. Thanks to smart contracts, your privacy is protected without compromising on safety.
• Negligible Fees: Unlike traditional casinos, the cost of gambling on dApps is nearly zero.
• Instant Payouts: Smart contracts allow dApps to run without third-party interference. Transactions take place with zero need for manual approval and instant payouts.
• Dividends: DApps give players extra benefits outside gambling. For example, players can earn bonuses by staking the native token of a dApp. 888TRON casino is one platform where players make dividends. All it takes is holding 888tron tokens in your gambling account to benefit from a 65% share of the platform’s profit.
• Provably Fair Games: Provably fairness makes it impossible for anyone to manipulate game outcomes and enables players to verify the results of every round.

dApps and their underlying technology have grown into an over $10 billion market with research. This figure may hit at least $300 billion by 2030, at a CAGR of about 57%. However, one of the critical issues facing the industry is the cost of production. It’s costly to develop decentralized applications, with developers having to invest an estimated minimum of $45K-$50 for an end-to-end, fully functional dApp. It doesn’t end there; the app owners still have to go further and invest a market fee fond users for their platform. Developers for applications like Augur have invested tons of money to a point where the ETH-based dApp now has a market cap of more than $300 million, yet it hardly sees more than 60 daily users. This is a demotivating factor to less established programmers who may not have excess resources to build a dApp and maintain it until it attracts enough users to make it self-sustainable.

Dapps hold an immense capability to transform the way we live. This is mainly due to their attributes such as:

• Have zero downtime
• Reduced risk of cyber attack
• They can’t be shit down
• Are unownable.

These characteristics have resulted in dApps being adopted in major industries, from the health sector to banking and even real estate. Of course, uptake is still slow, but as smart contracts become more acceptable in the real world, we will see more individuals and organizations shift to decentralized applications. Some of the noteworthy uses of dApps are:

• Gambling, e.g., Wink
• Voting, e.g., Maker
• Property Registers, e.g., eeshau
• Portable personal records, e.g., yStrack
• Speculative investments, e.g., UniSwap
• Mass Market Storage e.g., Filecoin
• Digital Ownership, e.g., Decentral
• Lending, e.g., Compound

We’ll use Ethereum dApps as an example. The process will be generally the same for dApps on other blockchain platforms.
To get started with dApps, follow these steps:

Overview

As per our research, there are currently over 3,000 decentralized applications in existence, with the majority of them, built on the Ethereum blockchain. The top categories are currently gaming, marketplaces, and finance.

In terms of user adoption, the number of daily active users (DAUs) has been steadily increasing. According to DappRadar, the total number of daily active unique wallets on Ethereum has increased from around 5,000 in January 2018 to over 25,000 in January 2022.

Thus, the future is promising, as more companies and developers are investing in blockchain technology and exploring its potential applications. According to a report by MarketsandMarkets, the global blockchain market size is expected to grow from USD 4.9 billion in 2021 to USD 64.7 billion by 2026, at a compound annual growth rate (CAGR) of 68.4% during the forecast period.

Moreover, the increasing adoption of decentralized finance (DeFi) is expected to drive the growth of such apps in the finance and banking sectors. The DeFi market has grown rapidly in recent years, with the total value locked (TVL) in DeFi protocols reaching a record high of over $84 billion in May 2021, according to DeFi Pulse.

Overall, the growth and adoption are expected to continue to accelerate in the coming years, driven by advances in blockchain technology and the increasing recognition of the benefits of decentralized systems.

Adoption

Adoption is on the rise, and several factors are driving this growth. These factors include:

• Advancements in blockchain technology make decentralized apps more scalable, efficient, and user-friendly.
• Increased public awareness of the benefits of decentralized systems, including enhanced security, transparency, and user control.
• A growing number of use cases in various industries, such as finance, supply chain management, and digital identity.

Use Cases

The potential use cases are numerous, and they have the potential to disrupt traditional industries and create new opportunities for innovation. Here are some examples:

• Finance:It can be used for a range of financial applications, such as decentralized exchanges, lending platforms, and asset management tools. These can provide greater security, transparency, and accessibility than traditional financial systems. Some examples include Uniswap (decentralized exchange), Aave (decentralized lending platform), and Melon (decentralized asset management platform).
• Supply Chain Management:It can be used to create more efficient and transparent supply chains, from product tracking and inventory management to supplier verification and payment processing. Some examples include Provenance (product tracking and tracing), Ambrosus (supply chain management for food and pharmaceuticals), and Skuchain (blockchain-based supply chain solutions).
• Digital Identity: It can be used to create more secure and user-controlled digital identity systems, enabling individuals to own and control their personal data and identity information. Some examples include uPort (self-sovereign digital identity platform), Civic (decentralized identity verification), and Sovrin (decentralized digital identity network).

Thus, the future is very promising, and as blockchain technology continues to evolve, we can expect to see more innovative and disruptive use cases for this exciting technology.

Security is a top-tier aspect of gambling. Luckily, crypto takes it a notch higher with decentralization. Unlike single data-point systems, blockchain-based data is spread across different nodes, making it more secure than traditional banking methods. In addition, players are not required to fill in personal data like names and credit card details during payments, eliminating the chances of private data leaking to fraudsters. In terms of transparency, decentralized gambling is open source, meaning anyone connected to the public ledger can validate the information. This is made possible by provable fairness decentralized gambling system that allows players to confirm the fairness of their game outcomes.

Traditional gambling always favoured the house in all aspects. First, players would have to contribute a percentage of their capital in favour of the house edge, and the return to players would always be unfair. This is not the case with dApp casinos. With low costs of transactions, zero rental costs, and no employees to pay, decentralized casinos can offer insanely high RTPs to their players. Average payouts range from about 94% to 97%, but this usually goes to as high as 99.90% in some game categories. Besides that, the percentage return for each game is usually clearly indicated.

DApp casinos and regular casinos have a lot of similarities. For example, you can play the same games in both. Whether you’re a slot lover, baccarat, roulette, or poker fan, you will not miss what to play in both regular online and dApp casinos. That aside, decentralized casinos have additional money-making opportunities such as staking, which are not available in traditional online gambling platforms. The operation model also varies greatly since decentralized operators run their business on blockchain compared to the web. This gives dApps an upper hand in terms of security due to the inherent safety features of crypto and fairness through provably fair technology. On the other hand, regular online casinos seem to be more sustainable in the long run. Cryptocurrencies can be highly volatile, forcing some players to return to less volatile FIAT casinos. That said, the decentralized ecosystem is still growing, and it’s safe to say that once dApps become more efficient, they will overtake standard online casinos very well.

In conclusion, decentralized applications are innovative tools that enable a range of decentralized services and functions, including decentralized finance, social networks, and gaming. One of the most popular use cases is decentralized gambling, which offers a range of benefits over traditional online casinos. One of the most significant advantages of decentralized gambling is the security and transparency of transactions, which are managed through the use of blockchain technology and smart contracts. Additionally, decentralized gambling offers a high level of fairness and trust through the use of Random Number Generators (RNGs) and other mechanisms.

When it comes to choosing a decentralized gambling platform, there are several factors to consider, such as the selection of games, ease of use, and security features. Some of the best casinos on the market today include EOSBet, FunFair, and Decent.bet, among others. As blockchain technology and decentralized applications continue to evolve, the potential for innovation and growth is enormous. In the future, we can expect to see even more use cases, such as decentralized supply chain management, voting systems, and identity verification, among others.