August 2024 AMA Question Submission - How do you define decentralized applications (DApps)?

Question: How do you define decentralized applications (DApps)? In your view, what is the future direction for their development?

Additional Context: My understanding of decentralized applications is that they consist of two main components: the server-side and the client-side. The server-side functions as a platform providing core business services, while the client-side is focused on traffic aggregation and information distribution, such as web applications, browser plugins, mobile apps, or desktop clients. For example, if Alice and Bob each run their own community applications, Cindy, as a user, could use a single client to access both communities simultaneously, even utilizing AI to filter or moderate posts. At the same time, the server-side interfaces are open and transparent, similar to smart contracts, allowing for various client implementations and enabling more complex and transparent business logic operations.

Question: Based on this understanding, what are your thoughts on the future development and implementation of decentralized applications? Do you see any areas for further improvement?

What is the biggest need for users of centralized applications? I believe it’s traffic. Both viewers and content creators rely on traffic, and centralized applications generate revenue by controlling traffic through ranking and recommendations. This is the core competitive advantage of Web 2.0. If Web 3.0 or decentralized applications (DApps) can't address the traffic issue, they will struggle to achieve significant growth. Therefore, we must consider how DApps can tackle this challenge. I believe that AI-driven traffic aggregation and intelligent distribution will be the key drivers for DApps to take off.

The value of Ethereum smart contracts lies in their transparency and trustlessness, but they support limited business logic. ArcBlock's DApps should build on these strengths while addressing the limitations, with a focus on achieving transparency and trustlessness. The APIs provided by the DApp server should be treated like smart contracts—open and testable.