Crypto glossary

dApp (decentralized application)

Definition

A dApp, or decentralized application, is software whose core logic runs on smart contracts on a blockchain instead of on a company's private servers.

A dApp usually combines a familiar web or mobile interface with smart contracts that hold the rules and the funds. Users connect a crypto wallet such as MetaMask, sign transactions and interact with the contracts directly, without opening an account or handing over custody of their assets.

Common categories include decentralized exchanges, lending markets, NFT marketplaces, games and prediction markets. Uniswap, Aave and Polymarket are well-known examples.

Decentralization is often partial. The front end may be hosted on an ordinary server, admin keys may allow the team to upgrade contracts, and data may come from centralized providers. Users still face smart contract bugs, phishing sites that copy popular dApps and the cost of on-chain fees.

Example

To borrow USDC on Aave, you open its dApp, connect your wallet, deposit ETH as collateral and sign the borrow transaction; the smart contract releases the loan within seconds.

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