DApp (Decentralized Application) is a type of application that operates on a blockchain or other distributed network, without relying on a central authority.

Why DApps are Different

Traditional applications like social media or banking apps are built on centralized servers controlled by a single company. This gives the company full control over the user data and the rules of the application, which can lead to censorship, server downtime, and data harvesting.

A DApp, on the other hand, has its backend code and data running on a decentralized network. This means no single company can shut it down, censor it, or control the user's data. All of its rules are encoded in a smart-contract, which is a self-executing agreement that lives on the blockchain. These applications are censorship-resistant and operate autonomously without human intervention.

The Building Blocks of DApps

The key components of a DApp are its smart-contract, a blockchain for security and data storage, and a user interface. To use a DApp, you typically connect a wallet, which gives you control over your digital assets and identity. Every interaction with a DApp costs a small fee, called gas, which is paid to the validators who process the transaction. This cost prevents network abuse.

The Big Picture

DApps are the foundational layer of the Web3 movement. They are used for a wide range of services, including DeFi protocols for lending and trading, NFT marketplaces for digital art, and even gaming. By removing the need for intermediaries, DApps aim to create a more open, transparent, and user-owned internet.