A dApp is a decentralized app. It differs from traditional apps in that it is open-source, operates autonomously, and there is no central company controlling it. If changes are to be made, they must be made through the consensus of its users. The data from the dApp are stored on the blockchain. These dApps use a cryptocurrency or token to access it.
Now for the big question, why does society need dApps? Here are some of the arguments:
• New ways to monetize digital assets
• One entity cannot take full control; changes made through consensus
• New way to conduct transactions
Read: Why Build Decentralized Applications: Understanding dpps
As an investor, it is important to know which cryptoeconomic protocols will successfully have dApps built on them; hence, they will be a good investment. Some of the protocol coins include Etherium, ESO, NEO, Cardano, and more. They all have a chance to change the world, but this article is going to concentrate on NEO.
NEO, formerly known as Antshares, is a protocol from China. Considering the success of a giant company like Alibaba, a blockchain out of China seems like a great investment (not to mention the 1.4 billion people; more than 700 million of them online). NEO is in competition with Ethereum and could potentially win. For more detailed information on the differences (or similarities) between Ethereum and NEO, check out this article: NEO versus Ethereum. Nonetheless, the price of NEO went up parabolically in the summer of 2017.
Cryptocurrency Market Capitalizations
However, after China announced regulations on cryptocurrencies and ICOs, the price plummeted and stayed down for more than three months. With China's 700 plus people out of the game, it was unclear if NEO would survive.
Cryptocurrency Market Capitalizations
NEO has come back though, and even through the bearish cryptocurrency market of January 2018, it is at all time highs. Why? Well, there is a lot of speculation, and I am only speculating as well. However, many dApps are being built on NEO. Furthermore, it hasn't had it's "CryptoKitties" moment; in other words, a dApp that took down the whole system.
If Ethereum, EOS, Cardano, NEO, or any protocol coin can successfully run thousands of dApps, the price of these projects will skyrocket. At the same time, the usefulness of dApps will obviously be necessary. If an App could do the job better than a dApp, well, I don't think I need to finish the sentence. In fact, I am personally excited about the Decentralized Revolution, but I have doubts as well. You can read a blog I wrote expressing my concerns: Growing Pains and Imperfection.
As an investor, keep an eye on these projects and the dApps they have planned for the future, and the ones that are up and running. Maybe there will be room for all protocol coins to strive in different capacities.
As of right now, NEO has a lot of dApps in the making. For example, Imusify. It is decentralized platform for music related digital content that incentivizes artists. Phantasma is another one; they allow users to control their own content including emails, chat logs, money transactions, and more. THEKEY is an identification validation project. Take a look at the NEO website to see the dApps they have lined up: NEO dApps. Hey, some or all of these dApps might fail; maybe just one hits it big, I don't know. At the same time, maybe a killer dApp is in the mind of some young genius and it will become something we all use everyday. Who knows.
The important point is that the protocol that can successfully run these dApps will be a great investment.