Blockchain technology is really innovative, cutting-edge and also complicated. Therefore, the process of utilising blockchain is quite challenging so businesses need to comprehend some special terms and tools. In the beginning, we need to examine the typical tools and products of this new kind of technology. Therefore, to help you get on well with blockchain technology, our article today will give you details about dapps vs smart contracts, and then you can differentiate them and take advantage of them efficiently.

Dapps vs Smart Contract: 2 Main Differences

Smart Contract

Differentiating dapps vs smart contract with 2 key points

To get started, we need to investigate the term “smart contract” and how it works. As blockchain includes the process in which many parties collaborate, it needs a tool to express and ensure agreements among participants. Then we have a smart contract. A smart contract is a combination of code and it will be active when the conditions among parties are passed. In other words, it runs like a trustworthy digital contract so the partners can work fairly together with without a middleman. A smart contract can run automatically and notify the next step when the participants finished the previous ones. In form of “if, when, then”, smart contract code can keep track of and operate the procedure really smoothly. When the exact step was done, the blockchain can automatically update to the new blocks.

Dapps

Differentiating dapps vs smart contract with 2 key points

Next, we need to understand the definition and main features of DApps. DApps are decentralized apps which run on various blockchain platforms. The main function of dapps is to connect with the blockchain platform and monitor the status of users, who take part in the network. Moreover, smart contract plays a critical role in building the logic of decentralized app and connecting the apps with blockchain platforms. Also, the number of smart contracts for each Dapp could be one or more, varying from one to another.

Key Differences

Differentiating dapps vs smart contract with 2 key points

There are two main points to distinct dapps vs smart contracts. Firstly, we focus on its main features. Decentralized applications (or dapps) are blockchain products, which operates on blockchain-powered sites and serve specific demands of users. A smart contract, however, is only an API tool to bridge Dapps with blockchains and ensure consistent operating flow. Secondly, each decentralized application has a system of backend code to program the apps, which also contains a smart contract. In other words, a smart contract is just a part of the dapps backend, contributing to reinforcing the connection among users. While decentralized applications are a program, a smart contract is just a tool installing it.

Conclusion

After reading this article, we hope you have a better understanding of dapps vs smart contract, their features, and their contribution to the blockchain systems. Moreover, we believe that you will no longer make mistakes in differentiating them, which may cause unexpected results when developing and utilising blockchain products. If you want to gain more knowledge of blockchain, as well as find the way to adopt it to your business, you can try to contact SmartOSC to have the best advice from experienced partners.


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