What is a Decentralized Application?
A decentralised application (DApp, dApp, Dapp, or dapp) is an application that can operate autonomously, typically through the use of smart contracts, that runs on a decentralized computing blockchain system. Like traditional applications, DApps provide some function or utility to their users. However, unlike traditional applications, DApps operate without human intervention and are not owned by anyone entity, rather DApps distribute tokens that represent ownership. These tokens are distributed according to a programmed algorithm to the users of the system, diluting ownership and control of the DApp. Without anyone entity controlling the system, the application becomes decentralised.
Decentralised applications have been popularised by distributed ledger technologies (DLT), such as the Ethereum blockchain, on which DApps are built, amongst other public blockchains.
The trustless and transparent nature of DApps has led to greater developments in the utilisation of these features within the decentralized finance (DeFi) space.
DApps are divided into 17 categories: exchanges, games, finance, gambling, development, storage, high-risk, wallet, governance, property, identity, media, social, security, energy, insurance, and health.
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