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Analyzing Market
Glossary

DApp

A DApp (decentralized application) is software whose core logic runs on a blockchain via smart contracts, rather than on servers controlled by one company.

How it works

A DApp typically pairs a normal web interface with smart contracts deployed on a public blockchain that handle its rules and store its state. Users interact by connecting their own wallet and signing transactions, so they keep custody of their assets and the back-end logic runs on the network instead of a private server.

Why it matters

Because the contracts are public and run on a decentralized network, a DApp can keep operating without a central operator and is harder to censor or shut down. The trade-off is that bugs in the contract code are exposed to everyone and, once deployed, can be hard to fix.

Example

A decentralized exchange that lets you swap tokens straight from your wallet is a common type of DApp.

DApp: Frequently Asked Questions

How is a DApp different from a normal app?
A normal app runs its logic on servers controlled by one company, while a DApp runs its core logic on a public blockchain via smart contracts. A DApp usually still has a familiar web interface, but users connect their own wallet and sign transactions, keeping custody of their assets instead of trusting a central operator.
Why are DApps considered censorship-resistant?
Because the contracts are public and run on a decentralized network, a DApp can keep operating without a central operator and is harder to censor or shut down. There is no single company that can be pressured to take it offline. This resilience is one of the main reasons developers build on public blockchains.
What are the risks of using a DApp?
The main trade-off is that bugs in the contract code are exposed to everyone and, once deployed, can be hard to fix. A flaw can be exploited before it is patched, potentially leading to lost funds. Because users sign transactions directly from their wallets, it is important to understand what each transaction approves.
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