Emerging Technologies
Decentralized Application (DApp)
Definition
A decentralized application (DApp) is a computer application that runs on a decentralized computing system, such as a blockchain. Unlike traditional apps that run on a centralized server, DApps are censorship-resistant and operate without a central point of control.
Why It Matters
DApps represent a new paradigm for building applications that are more transparent, secure, and user-centric, where users can interact directly with each other without relying on a central intermediary.
Contextual Example
Uniswap is a popular decentralized exchange (DEX) built on the Ethereum blockchain. It allows users to trade cryptocurrencies directly from their wallets using smart contracts, without a central company holding their funds.
Common Misunderstandings
- The "backend" of a DApp is a set of smart contracts running on a blockchain.
- Building DApps comes with unique challenges, such as transaction costs ("gas fees") and the difficulty of updating code once it's on the blockchain.