Decentralized Application (DApp)
What Is a DApp?
Decentralized applications, or DApps, are applications that are built on blockchain technology to create more transparent, secure, and inclusive systems. Regular applications are typically controlled and operated by a central entity, such as a company or organization. DApps, on the other hand, run on a blockchain
and operate autonomously, relying on the collective efforts of a blockchain’s nodes and encoded rules on smart contracts
What Is a DApp Used For?
DApps empower users by giving them more control over their data and removing intermediaries. They allow individuals to have a greater say in how their data is used and shared, reducing reliance on centralized entities that often monetize users' data. Users can start using DApps by simply connecting to them with their crypto wallets and begin trading and performing other functions without lengthy registration processes or sharing personal information.
DApps also encourage open-source development and community participation by empowering users to take on a more active role in the direction of these platforms if they wish to do so. They invite users and developers to contribute to the application's code, governance, and decision-making processes, encouraging collaboration and innovation.
Here are three common examples of DApps:
Decentralized finance (DeFi)
DApps enable users to access financial services without the need for traditional intermediaries, such as banks. They allow individuals to lend, borrow, trade, and earn interest on cryptocurrencies. DeFi DApps can bring financial inclusion to people who may not have access to traditional banking services.
DApps are increasingly being used in gaming
to create decentralized and transparent gaming experiences. These DApps can enable players to own and trade in-game assets, participate in provably fair competitions, and earn rewards in the form of crypto tokens.
Governance and voting