A decentralized application, or DApp, is like a regular app but operates on a blockchain. DApps utilize the unique features of the blockchains they're built on to provide enhanced security, transparency, and independence compared to traditional apps. The key lies in distributing control among multiple participants, ensuring that your data isn't under the control of a single company or server. Instead, it's recorded on the blockchain and verified by numerous nodes in the network.
đ Consider a social media DApp: when you post something, it gets stored on the blockchain, visible to everyone in the network. This contrasts with typical social media apps, where your data resides in a centralized database owned by a company. With multiple computers validating the information, it becomes challenging for the app creator to manipulate or monetize your data.
âïž DApps serve various purposes and functions. Some revolve around financial transactions, like DeFi or payment systems enabling direct money transfers without relying on a bank. Others focus on gaming, supply chain management, voting systems, or even the creation of digital art and collectibles. The beauty of DApps lies in their decentralized nature, offering new possibilities across diverse domains.