A dApp, short for decentralized application, is a software application that runs on a decentralized network, typically a blockchain. Unlike traditional apps that run on centralized servers controlled by a single entity, dApps operate on a peer-to-peer network of computers, ensuring transparency, security, and immutability through blockchain technology.
Key features of dApps include:
Decentralization: They don't rely on a central authority, making them resistant to censorship and single points of failure.
Open Source: The code behind dApps is usually open source, allowing anyone to view and contribute to its development.
Tokenization: Some dApps utilize tokens or cryptocurrencies as part of their functionality or for incentivizing network participants.
dApps have various use cases across industries, including decentralized finance (DeFi), gaming, supply chain management, social networks, and more. Examples of dApps include Uniswap (a DeFi protocol), XOXNO (an NFT marketplace), Cyberpunk City (gaming).