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Decentralized Application Meaning

Aug 10, 2023 | Updated Aug 10, 2023
A decentralized application is a software program operating on a peer-to-peer network. It runs independently on the internet using smart contracts, outside the control of a single entity or authority.

What is a Decentralized Application (dApp)?

Decentralized application (dApps) are software applications that run on a blockchain network or a distributed system of computers. A dApp is like a typical web application, but one that operates on a peer-to-peer (P2P) network. Hence, you can think of a dApp as a combination of a graphical user interface (GUI) and smart contracts as the backend. dApps are open-source software applications built almost exclusively on the Ethereum network.

DApps allow two parties to transact or enter a contract without the need for an intermediary or central authority to oversee the process. Smart contracts allow dApps to operate autonomously, ensuring that the contract or agreement is automatically fulfilled without human involvement.

Characteristics: What Defines a dApp

DApps are also open source and censorship-resistant. This means that a dApp’s source code is available for anyone to view, inspect, copy, modify for their own use, and contribute suggestions.

dApps are decentralized since they operate on a decentralized network and no single entity controls them. In addition, they have no single point of failure.

What are the Advantages of Using a Decentralized Application?

Some of the benefits decentralized applications have over regular applications include:

  • User privacy – dApps are secured using cryptography, meaning that your information is encrypted so that no one else in the network can access it.
  • Fault-tolerance – Unlike traditional apps that store data on a centralized server that is controlled by a single entity, dApps’ decentralized nature eliminates the possibility of a single point of failure.
  • Data integrity – On top of each node (or computer) storing every transaction, the blockchain’s consensus mechanism ensures that the data cannot be manipulated. This improves the security and integrity of decentralized applications.

The distributed nature of dApps ensures their transparency, resistance to malicious attacks, and decentralization.

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