DApps: Decentralized Application | What Is It?

DApps are true innovation that masterfully uses the benefits of decentralization to provide end users with the utmost security and sensitivity. Decentralized applications created on top of blockchain are referred to as DApps.

What are DApps?

The backend software of a dApp runs on a decentralized peer-to-peer network. Compare this to a typical app, where the backend code runs on centralized servers.

The sole difference between blockchain-powered decentralized apps and the mobile or web apps we now use daily is how you conduct transactions or connect with other users through the blockchain network. The data being transacted in this case is dispersed throughout a decentralized network of millions of nodes, keeping user records and identity secure and impermeable rather than being under the jurisdiction of a single large corporation, intermediary, or company.

It’s Unique Characteristics:

The extraordinary qualities and attributes that DApps possess are what set them apart. Let’s mention some of them and quickly go over them.

Censorship Proof: 

If you utilize a decentralized app, no one in the blockchain network can restrict your profile or account since it is not under the jurisdiction of a central organization or owner.

Let’s examine it with yet another example:

Suppose you use a dApp similar to Facebook and post messages to the app network. No one, not you, can take those messages down after they’ve been published.

Open Source: 

DApps must be open-sourced, and the developer community must have access to the code base. However, any improvements in the open-sourced DApp code must be made by a consensus method that essentially amounts to a majority vote rather than a developer.


Because a DApp is decentralized, its anonymous data must be kept on an immutable, public blockchain.

Dapps provide complete data integrity and are cryptographically secured. Thanks to cryptographic primitives, everything saved on the blockchain is unchangeable and incontrovertible, preventing hackers and attackers from forging your transaction without your permission. Your credentials are kept secure by using your wallet to approve DApp operations with your DApp user account.

Maintain Anonymity:

As a dApps user, you may maintain anonymity throughout any transactions in the DApp.

Get Incentivized: 

Tokens produced in DApps are used in the blockchain ecosystem to reward validators.

Zero Downtime DApps: 

DApps are hosted on decentralized blockchain platforms like Ethereum and polygon, guaranteeing high availability around the clock. It is exceedingly unlikely for a blockchain technology like Ethereum to be compromised or experience downtime.

The Function of DApps

The backend code for DApps is stored and executed on a decentralized network, such as the Ethereum blockchain, where smart contracts are used for the app logic and data storage.

In this case, smart contracts are a collection of protocols that are publicly available on the blockchain and may be seen and executed in accordance with those protocols. As a trustworthy intermediary, smart contracts facilitate agreements and transactions. The intelligent smart contract that stores the logic to regulate the DApp’s transactions is the main reason DApps can be decentralized on a specific blockchain network.

Use Cases and Examples:

It includes running decentralized finance (DeFi) lending services, games, NFT, collectibles, and marketplaces. 

DApps Case Study:

Decentralized Trading Protocol: UniSwap

Open-sourced liquidity protocol: (AAVE)

Most Effective aggregator of DeFi: 1-inch

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Rarible is both a marketplace for these assets and an Ethereum-based distributed network that facilitates direct exchange.