What is a DApp, utility tokens and how are they used?

27 Apr 2024

VeriDoc Global

A Decentralized Application (DApp) is very similar to a traditional web application. The front end uses the same technology to render the page. The one critical difference is that instead of an API connecting to a database, there is a smart contract connecting to a blockchain.

Utility tokens are services or units of services that can be purchased. They don’t represent a share of the business. They can be compared to API keys, used to access a service.

ERC20 is a guide of rules and regulations that help create a blueprint for Ethereum based smart contracts to create tokens. The VDG token is an ERC20 digital cryptographic utility token issued by VeriDoc Global. VDG is necessary to pay for transaction costs on the blockchain network when protecting an original document.

VDG token is implemented on the application-level on top of Ethereum blockchain. It is integrated within the application and is part of the application incentive mechanism for nodes and/or users. VDG token adheres to the ERC20 token standard of how to access information, transfer assets, and fire off events.