Is it really true that DAPPs cannot be owned by anyone, it is impossible to shut them down and they can’t ever have a downtime?
Even if there is an actual definition of DAPPs but it is difficult to summarize DAPPs in a few lines. An application needs to have a specific set of characteristics to qualify as a DAPP.
The characteristics are as follows:-
1. Open Source – Source code of app is available to all.
2. Decentralized – Uses a blockchain-like cryptographic technology.
3. Incentive – App has crypto-tokens/digital assets for fueling itself.
4. Algorithm/Protocol – Generates tokens and has an inbuilt consensus mechanism.
Based on blockchain DAPPs are classified into three categories:-
TYPE l :- These types of DApps have their own blockchain (like Bitcoin). Other altcoins also fall under this category as well.
TYPE ll :- These types of DApps use the blockchain of Type I DApps.
Type II decentralized applications are protocols and have tokens that are necessary for their function.
The Omni Protocol is an example of Type II decentralized application.
TYPE lll :- These types of DApps use the protocol of a Type II DApp.
For example, the SAFE network uses the Omni Protocol for issuing SafeCoins that are then used to build distributed file storage.