The world of cryptocurrency is full of abbreviations and new terms. One such term is “dApp”. But what exactly is a dApp?
In the most basic sense, a dApp is a decentralized application. That is, it’s an app that runs on a decentralized network (like a blockchain) as opposed to a centralized network (like the internet).
What makes dApps different from regular apps?
There are three main characteristics that make dApps different from regular apps:
1. They’re open source
2.
They’re decentralized
3. They have token incentives.
Let’s take a closer look at each of these characteristics.
NOTE: Warning: It is important to note that although Ethereum is the most popular platform for decentralized applications (dApps), dApps can also be built on other blockchain platforms. There are various other blockchain platforms, such as EOS and Cardano, which offer their own dApp ecosystems. Additionally, depending on the use case, dApps can even be built on non-blockchain platforms such as Hyperledger or Corda. Therefore, it is incorrect to assume that all dApps are only on Ethereum.
1. Open source: A dApp is open source, which means that anyone can view and contribute to its code.
This makes dApps more transparent and secure than regular apps, which are usually closed off and proprietary.
2. Decentralized: A dApp is decentralized, which means that it runs on a decentralized network (like a blockchain) as opposed to a centralized network (like the internet).
This makes dApps more resistant to censorship and tampering than regular apps.
3. Token incentives: A dApp has token incentives, which means that users are rewarded with tokens for participating in and contributing to the dApp.
This incentive structure helps to ensure that the dApp remains secure and decentralized over time.
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