What is DApp in Web3: Guide on How to Build Your Profitable DApp for Not-tech Founders from Tech Geeks

The public opens its eyes a little and starts to see all the benefits of blockchain and other innovative technologies. For example, in 2022, about 1.13 million unique wallets interacted with gaming dApps, which is 60% more than in 2021. These dApps operate on a distributed network, ensuring decentralized control and resistance to censorship.

dApps operate within a blockchain ecosystem like Ethereum or Solana, which supports the development and execution of decentralized applications through smart contracts.

If you want to build your own dApp with Web3, you’re on the right track. We at ProCoders are ready to enrich your knowledge. How to approach the development? How much will it cost? How to invest properly?

This guide will answer all of your questions. Code included!

Key takeaways:

• Web3 dApps are applications based on blockchain. They have no central authority or control, integrate crypto easily, and are open-source.
• The challenges connected to Web3 dApp development are the security and scalability of the approach, as well as the search for engineers with fair prices.
• Typically, the architecture of such applications consists of a smart contract, a front-end section, and a wallet platform for transactions.
• The tech stack includes Solidity, JavaScript, Web.js, and other useful languages and frameworks.
• To develop a Web3 dApp, you need to make 3 big steps: creating a smart contract, connecting it to the front-end part, and writing the features of the app. We cover these steps in detail in this guide.
• To invest properly in Web3, you could develop your own dApps or invest in other profitable projects with potential. Find more ways in the guide.

Introduction to Web3

Web3 is the next generation of the internet, characterized by decentralized applications (dApps) and blockchain technology. Unlike traditional apps, which operate on centralized servers, dApps run on a decentralized network, allowing for peer-to-peer interactions and transactions without the need for intermediaries.

This decentralized nature enables dApps to provide a secure, transparent, and censorship-resistant way of conducting transactions. Web3 is closely tied to the concept of decentralized finance (DeFi), which aims to disrupt traditional financial systems by providing decentralized alternatives for lending, borrowing, and trading crypto assets.

Understanding Decentralized Systems

Decentralized systems, such as blockchain networks, are the foundation of Web3 and dApps. These systems operate on a peer-to-peer network, where multiple participants work together to confirm transactions and maintain the integrity of the network. Decentralized systems are resistant to centralized control and single points of failure, making them more secure and resilient than traditional systems.

Smart contracts, which are self-executing contracts with the terms of the agreement written directly into lines of code, play a crucial role in decentralized systems. They enable the automation of various processes, such as the transfer of digital assets, and provide a secure and transparent way of conducting transactions.

Decentralized Applications Using Web3: Basic Definitions

So, what is Web 3 technology? What are dApps?

Web3 decentralized applications’ purposes may be the same as those of regular Web2 apps, but these are more innovative and democratic as they are:

• Open-source – heavy support, encourages engineering and improvements.
• Crypto-integrated – you can easily use cryptocurrency in your dApps.
• Decentralized – there’s no central authority, which means no censorship and process transparency.

The main thing to remember here is that dApps reside on blockchain. When you create your own dApp using Web3, keep in mind that you’ll need a smart contract as a basis for it. Ethereum smart contracts using the Solidity programming language will work perfectly.

For example, if you build a Web3 marketplace, the contract will automatically transfer the ownership rights to the buyer immediately after the purchase. This tech is responsible for the execution of the key processes of your app.

Unlike traditional Web 2.0 applications, dApps work on blockchain technology, allowing them to operate autonomously without central control. This unique structure enables dApps to function independently of corporate or governmental oversight.

In centralized authority apps, users interact by downloading the app and communicating with a central server. In contrast, on decentralized platforms, users interact directly with each other, emphasizing a shift towards more user-controlled interactions and ownership.

Additionally, dApps can function as a payment system without traditional intermediaries, facilitating direct exchanges of assets and showcasing the innovative financial applications of blockchain technology.

When you read the general information about creating a dApp using Web3, it may sound too good to be true. Which we at ProCoders find correct, that’s why we’ve created a list of challenges you may face when opting for Web3 technologies and decentralization.

Honest communication is one of our superpowers, so we’re always open to discussing not just the roses but the thorns as well.

Possible Challenges You May Face When Making Decentralized Applications Using Web3

Here are some of the most common challenges businesses and developers may encounter when building a decentralized application using Web 3.0 tech. Decentralized networks play a crucial role in enhancing the security and resilience of these applications by leveraging blockchain technology. Additionally, private keys are essential for securing interactions with dApps, ensuring the integrity of the user’s assets and transactions.

Security

Dependence on third-party tech, potential hacker attacks, and data manipulation can all undermine the security of a Web3 application. These are pre-existing risks that all organizations take when entering the sector. However, the decentralized nature of dApps ensures that no single entity has control, enhancing their security and operational autonomy. Additionally, dApps are less vulnerable to single-point-of-failure issues, such as power outages or network disruptions, due to their distribution across a decentralized network of nodes.

Scalability

Scalability is still a challenge for Web3 technologies, as it’s not possible at the moment to balance security, scale, and maintain decentralization. Many dapps face scalability challenges, which impact their performance and user experience. That’s why many projects compromise the latter to maintain scalability and offer premium security, which basically brings us back to centralization. However, advancements in cross-chain technology within blockchain systems, such as token bridges and message bridges, are enhancing interoperability and value exchange, potentially offering solutions to these scalability issues.

Lack of developers and high rates

As the industry is quite new compared to Web2, you have to really look for skilled professionals with fair rates. Gladly, there are lots of people with proper expertise. We know it better than anyone, as many Web3 developers work for ProCoders and put all their effort into overcoming the previous challenges.

Developing a blockchain-based virtual game requires specialized skills, particularly in understanding the Ethereum Virtual Machine (EVM). The EVM plays a crucial role in enabling smart contract execution and ensuring compatibility with various blockchain ecosystems, which is essential for developers building dApps on non-Ethereum networks.

But if you want to find the staff yourself, prepare for some high rates due to the lack of competition, especially among senior engineers.

Regulatory considerations

The regulatory landscape for dApps and Web3 is still evolving and varies by jurisdiction. However, most regulatory considerations focus on issues such as anti-money laundering (AML), know-your-customer (KYC), and consumer protection. dApp developers must ensure that their applications comply with relevant regulations and laws, such as the General Data Protection Regulation (GDPR) in the European Union. Additionally, dApps must be designed to provide transparency and accountability, enabling users to make informed decisions about their interactions with the application.

Typical Architecture of a Simple Web3 DApp: What to Consider for Future Scaling

An important part of the answer to the “How to create a Web3 dApp?” question is the architecture of the future project. Basically, a dApp consists of:

• A smart contract – acts as the back end of the app. This is where you apply the business logic of your application.
• A wallet – takes care of the transactions necessary to operate the app, join its community, etc.
• Front end – user interface that receives requests and transfers them to the back end to execute. This frontend interface allows users to interact with the decentralized app.

Decentralized apps (DApps) differ from traditional apps in terms of architecture. While traditional apps rely on centralized servers, DApps function on decentralized networks utilizing blockchain technology, offering a more open and secure internet.

To combine all of these, you needed the JSON-RPC API by Ethereum before. Now, you can use Web3.js for this. It translates JavaScript requests into JSON-RPC.

Tech Stack You Need to Build a Decentralized Application with Web3

Before we get into details on how to create a DeFi app or any other decentralized project, we have to mention the tech must-haves that will lead you to success.

You’ll need knowledge of Solidity to write smart contracts for the app. For the client-side app, you’re going to use HTML, CSS, and JavaScript (frameworks like React.js work great for dApps). DApps can also be integrated into web browsers as plugins, enhancing functionality, by serving ads, tracking user behavior, or facilitating crypto donations.

Some other things you’ll require:

• Personal blockchain for app development (such as Ganache)
• Node.js for development environment configuration
• A Solidity framework like Truffle to make it easier to create smart contracts
• MetaMask Ethereum Wallet to turn a simple browser like Chrome into a blockchain one.
• Web3.js to translate JavaScript requests to JSON-RPC.

Decentralized exchanges (DEXs) are a significant type of dApp that rely on smart contracts for executing trades autonomously. They facilitate cryptocurrency trading without a central authority, highlighting their regulatory considerations and operational mechanics within the broader blockchain ecosystem.

Keep in mind that the final tech stack may be different, depending on your requirements and the needs of the project.

And now you officially have enough knowledge to finally find out how to make a dApp with Web3!

Steps to Make Decentralized Applications with Web3

So, how to make a decentralized app using Web3? Here, we provide clear steps and code samples with easy explanations. Something here may sound complicated, but remember that ProCoders’ specialists are always there for you, ready to take up your project. Certain dApps, like Uniswap, enables users to engage in direct trading without intermediaries, highlighting the benefits of a seamless and secure trading experience facilitated by automated smart contracts.

OK, let’s dive into the steps of how to build a decentralized app, allowing users to view, verify transactions, and interact seamlessly across different blockchain networks. For anyone interested in taking full advantage of these capabilities, it’s worth exploring how to create a DAO, which can enhance autonomy and resource access. This enhances efficiency, control, and trust, facilitating users’ autonomy and access to a broader range of resources and features from multiple ecosystems.

Step 1. Create a smart contract and deploy it

If you already have Truffle installed, which you should, start by initializing the space you’ll be coding in by writing:

mkdir greeting
cd greeting
truffle init

If not, write

npm install -g truffle.

The next step is to open your code editor and add the port and IP of your Ethereum network. Then, install a Solidity compiler by writing the following:

npm install -g solc// check the installed version
solc --version

Next, we create the greeting contract with:

truffle create contract Greeting

One of the final steps here is to add a migration file such as 2_deploy_greeting.js:

const Greeting = artifacts.require("Greeting");module.exports = function (deployer) {
     deployer.deploy(Greeting);
};

To deploy, type:

truffle compile
truffle migrate

Smart contracts execute actions automatically once the parties involved meet specific conditions. This ensures that transactions are carried out seamlessly and without the need for intermediaries.

dApps provide significant benefits, such as anti-censorship features and transparency through blockchain technology. The ability to access public ledgers and read smart contracts ensures accountability and encourages open-source development, allowing users to contribute to and audit these decentralized applications.

Step 2. Join the frontend and backend

The next big step in our “How to create a web3 dApp?” guide is setting up the front end of the app and joining it with the contract we have already deployed. For that, you need to create a Client folder, adding two files:

• index.html
• package.json

For that, input:

mkdir client
cd client
npm init -y
touch index.html

The next part of the mission is dependencies installation:

npm i web3 --save
npm i lite-server --save-dev //for running a development server

Then, we work with the scripts utils.js and index.js. Make sure to create a new src folder for them and add them to the file with HTML code:

<script type="text/javascript" src="node_modules/web3/dist/web3.min.js"></script><script type="text/javascript" src="src/utils.js"></script><script type="text/javascript" src="src/index.js"></script>

Next, we optimize the MetaMask provider to make sure we’ll get all the benefits of a Web3 dApp we code now. You can use these docs to get all the needed knowledge on the provider and its functions. Here, we need to use window.ethereum to communicate with the users and ask if they are OK with the app accessing their accounts.

To achieve that, we have to create an instance of our contract. For that, we need its address and ABI. All that and more you can find in the Greeting.json file.

So, you can just copy the file and paste it into Contracts under the Clients folder. To make sure the extension is available to you, don’t forget to install jQuery by inputting the following:

npm i jquery

Next, the ID of the network MetaMask uses. For that, use web3.eth.net.getId(). This data allows us to get the smart contract’s address from the Greeting.json file we talked about earlier, creating an instance.

Step 3. Write the methods of the contract

The final step to make your own dApp with Web3 is writing the methods of your contract:

• For read-only features, write

myContract.methods.myMethod([arguments]).call()

• For modification features, input

myContract.methods.myMethod([arguments]).send()

This is a brief guide, but you can find the whole code here to help yourself out.

dApps operate on decentralized networks, which eliminates intermediaries, reduces costs, and increases efficiency. This unique functioning within peer-to-peer and blockchain networks ensures that no single authority controls the operations, providing significant autonomy and preventing any single entity from having complete control.

Coding a dApp using Web3 can be a difficult task. To make your life easier, you can find out how to hire Web3 programmer with ProCoders and skip all the technical difficulties, focusing on the core business and marketing efforts for your new product.

The topic of money is surely important, as any project requires investment, and you can only succeed at monetizing the app.

Best Practices for Development

When developing dApps, it is essential to follow best practices to ensure the security, scalability, and usability of the application. Some best practices include:

• Using secure and well-tested smart contracts
• Implementing robust user authentication and authorization mechanisms
• Providing transparent and clear user interfaces
• Ensuring compliance with relevant regulations and laws
• Conducting thorough testing and auditing of the application
• Continuously monitoring and updating the application to address potential security vulnerabilities and improve performance.

By following these best practices, dApp developers can create secure, user-friendly, and scalable applications that provide real-world value to users and contribute to the growth and adoption of Web3 and decentralized technologies.

How to Invest in Web3?

Here are some effective ways to invest funds in Web3:

• Hire Web3 dApp coders and create your own product
• Participate in promising Web3 projects
• Invest in cryptocurrency, new tokens, etc.
• Invest in decentralized social media dApps to explore new monetization models

Web3 gaming also offers significant potential by transforming ownership and monetization through in-game assets. Players can truly own digital content, such as characters and items, by tokenizing these assets on the blockchain, enabling a play-to-earn economy that facilitates the buying and selling of in-game items across platforms.

How to hire crypto developer? Just contact ProCoders, and the rest is our job!

You can use all of the aforementioned ways or choose one that, in your opinion, will bring more profit and help you achieve your business goals.

How ProCoders Can Assist You in Creating a DApp Using Web3?

ProCoders is a treasure chest with experienced developers, designers, testers, and other tech staff you may need for the project. As an outstaffing company, we hire the best talent from Central Europe to complete your teams.

This means that we may already have the right engineers who can develop dApp with web3 for you on the bench. ProCoders can help develop unique dApps like those that allow users to trade virtual cats, similar to CryptoKitties, where players can adopt, raise, and trade these unique digital pets.

ProCoders can:

• Provide you with additional staff who can take up the project at any stage
• Create a separate dedicated team specifically for your dApp
• Provide analysis and estimates on whether the project is still an idea

Why choose us? Because we offer:

• Highly experienced middle and senior specialists
• Honest communication and process optimization
• An individual approach to every case
• Vast experience in multiple industries
• Fair prices
• Long-term commitment
• Full tech support of the project, even post-launch
• Proper scalability

If you’re looking for a true tech partner, ProCoders must be on your list!

Conclusion

Web3 is growing and gaining new followers every year. It’s not too late for you to find out how to develop a Web3 dApp and bring one to life yourself or with the help of professional engineers. Decentralized applications (dApps) are accessible to anyone with an internet connection, highlighting their global reach and significance in the Web3 landscape.

There are still challenges in this sector, such as security, scalability, and the effort you need to find proper coders, but with the right team, they are all possible to overcome. As dApps grow in use cases and mainstream adoption, they will increasingly transform key sectors like the supply chain by enabling greater efficiency and transparency. The quality of your app says a lot about your company to its customers and program users, so it makes sense to hire the best people to create it.

We at ProCoders are looking forward to scheduling a call with you about your next project! We’re sure that there are available developers for you at the moment.