What Is DApp (Decentralized Application)?
Also known as: Decentralized Application, dApp
In short
A DApp (decentralized application) is a web or mobile application whose backend logic runs not on a single company's server but in smart contracts on a blockchain, and which users connect to with their crypto wallets.
A typical DApp consists of two layers: the user interface works like an ordinary website, but critical operations such as balances, swaps or voting are executed by smart contracts. The user logs in to a DApp not with an email and password but by connecting a wallet such as MetaMask, and signs each transaction in their wallet. Because the application's rules and data are public on the blockchain, its operation can be audited independently.
Decentralized exchanges, lending protocols, NFT marketplaces, blockchain games and DAO tools are common examples of DApps. For example, even if Uniswap's official interface becomes inaccessible, its smart contracts keep running on the blockchain and can be used through other interfaces or by calling the contracts directly.
In DApps, the need to pay gas fees for transactions and block confirmation times can make the user experience harder. Hosting the interface on centralized servers creates a partial point of centralization; smart contract bugs and fake interfaces imitating the real application are also among the main risks.
Last updated: · This content is for information purposes only and is not investment advice.