Decentralized Applications (dApps)

Decentralized Applications (dApps) are software applications that run on peer-to-peer networks rather than centralized servers, eliminating single points of control and failure. Unlike traditional applications where code and data are controlled by a single entity, dApps operate on distributed networks where users retain control of their data and interactions, with core functionality typically implemented through smart contract and peer-to-peer protocols.

The key characteristics of dApps include open-source code, cryptographic consensus mechanisms, and token-based incentives that align network participants' interests. Common examples include decentralized exchanges, social media platforms, marketplaces, and gaming environments where users can interact directly without intermediaries. These applications often integrate cryptocurrency for value transfer and digital signature for user authentication.

dApps represent a paradigm shift in software architecture, enabling the creation of parallel digital infrastructure that operates independently of traditional corporate or institutional control. By combining peer-to-peer networks, cryptographic primitives, and economic incentives, dApps create resilient systems where users maintain sovereignty over their data, assets, and interactions while participating in community-governed digital spaces.