For an application to be considered a Dapp (pronounced Dee-app, similar to Email) it must meet the following criteria:
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The application must be completely open-source, it must operate autonomously, and with no entity controlling the majority of its tokens. The application may adapt its protocol in response to proposed improvements and market feedback but all changes must be decided by consensus of its users.
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The application's data and records of operation must be cryptographically stored in a public, decentralized blockchain in order to avoid any central points of failure.
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The application must use a cryptographic token (bitcoin or a token native to its system) which is necessary for access to the application and any contribution of value from (miners / farmers) should be rewarded in the application’s tokens.
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The application must generate tokens according to a standard crytptographic algorithm acting as a proof of the value nodes are contributing to the application (Bitcoin uses the Proof of Work Algorithm).
Type I: have their own blockchain (Bitcoin, Litecoin, alt-coins). Type II: are protocols and have tokens, use type I blockchain (Omni protocol). Type III: use protocol of type II (SAFE Network).
A useful analogy for a type I Dapp is a computer operating system (Linux, Android, iOS) for a type II Dapp a general purpose software program (Dropbox) and for type III Dapp, a specialized software solution (blogging platform that uses Dropbox)
There will be a few type I Dapps, more type II Dapps and even more type III Dapps.
POW, POS.
Mining (operation), fund-raising (token sale) and development
- Step 1: A whitepaper is published describing the Dapp and its features
- Step 2: Initial tokens are distributed
- Step 3: The ownership stake of the Dapp is spread