Decentralized Application (dApp)
A Decentralized Application (dApp) is a software application that runs on a peer-to-peer network, utilizing Blockchain technology to ensure that no single entity has control over the entire application. dApps are designed to be open-source, operate autonomously, and have a specific purpose, often involving Smart Contracts to facilitate transactions and interactions without intermediaries.
Examples of dApps include:
- Ethereum-based Games: Games like CryptoKitties, where players can buy, sell, and breed virtual cats on the Ethereum Blockchain.
- Decentralized Finance (DeFi): Platforms like Uniswap and Aave, which allow users to trade cryptocurrencies or lend and borrow without traditional banks.
- Decentralized Marketplaces: OpenSea, a marketplace for buying and selling non-fungible tokens (NFTs), operates as a dApp.
Use cases for dApps include:
- Financial Services: Enabling peer-to-peer transactions and decentralized lending platforms.
- Supply Chain Management: Tracking goods and verifying authenticity using Blockchain technology.
- Social Media Platforms: Creating censorship-resistant platforms where users maintain control over their data.