What is a Decentralized Application (dApp)?
Decentralized Applications or dApps are applications that run using blockchain technology. They are permissionless, open-source, and allow the use of cryptocurrency to perform a wide variety of opportunities. A dApp has its backend code running on a decentralized peer-to-peer network.
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A dApp is typically used with cryptocurrency to interact with blockchain technology. dApps have a front-end interface for users to interact with, and back-end coding which reads and writes data to the internet and the blockchain. The first dApp was created on April 22, 2016, on the Ethereum blockchain.
More About Understanding dApps
dApps or Decentralized Applications are apps that run using blockchain technology. They are permissionless, open-source, and allow the use of cryptocurrency to perform a wide variety of opportunities.
dApp users may feel more secure in the knowledge that the creators of the application cannot control how it is used - at least, not in the conventional way. For example, the creators of a social network dApp are powerless to remove a post or exclude a user. They are also unable to sell users’ data to other entities because dApps run autonomously once they’re launched. - CoinDesk full article
A dApp has its backend code running on a decentralized peer-to-peer network. Contrast this with an app where the backend code is running on centralized servers. A dApp can have frontend code and user interfaces written in any language (just like an app) to make calls to its backend. Furthermore, its front end can get hosted on decentralized storage. - Ethereum.org
Like most internet-based technology, dApps need to be hosted by a web hosting provider so their dApp may be accessible to users.
What Are Some Of The Most Common dApps?
- Dashboards - Used by many Altcoin projects, dashboards show users information from the blockchain.
- Swaps - Swaps allow users the ability to transfer and exchange cryptocurrency tokens.
- Staking - A staking dApp provides a front-end interface for users to interact with smart contracts, read our article about staking crypto.
- Games - Many play-to-earn NFT games are dApps that connect to your wallet and the blockchain.
As the concept of Defi is going mainstream, new applications keep showing up.
Unfortunately, they all allow you to borrow, lend, trade, and invest your crypto assets, making it difficult to make a choice.
So, to help you tap into the fastest-growing sector in the crypto-verse, we've revealed the 7 best decentralized finance applications in 2022. By the end of the road, you'll be able to make an informed decision about a suitable DeFi app to use.
