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What are DApps?
What are DApps?

A deep dive into DApps, reasons to use them and best practices.

Brittany avatar
Written by Brittany
Updated over a week ago

Diving Deeper into DApps

Decentralized Applications, also known as DApps, are digital applications that combine a smart contract backend and a user interface frontend on a peer-to-peer decentralized network. DApps are just like any other software application you use, like a website or an app on your phone, but it's built on a decentralized network, like Ethereum.

The overall purpose of a DApp is to allow users to interact with a product/service without the need to interact with a server. Instead, a DApp interacts directly with the blockchain. DApps can operate without human interference or oversight.

DApps can only be built on smart contract networks, such as Ethereum. This is because smart contracts allow for 2 users to come to an agreement, written in code, without the use or need of a third party. That means that the smart contracts can be reviewed by users and other developers to verify their integrity, thus creating an ‘open source’ contract.

DApps, like most apps, can be placed in many categories and serve varied purposes, like exchanges, games, finance, gambling, development, storage, governance, property, real-estate, identity, media, art, social networks, security, insurance, health, and more.

Why would I interact with a DApp?

DApps are very similar to the current application software that we know (apps) in terms of functionality. The main difference is that the DApp itself lives on a blockchain rather than a computer server, and allows its users to transact with one another directly, cutting out the middleman.

Depending on the DApp itself, they all serve a different purpose for the user. Many DApps resemble traditional financial tools like trading and earning interest, but the main benefit is their open-source, peer-to-peer functionality.

Some examples of the popular DApps:

  • Rarible

  • OpenSea

  • Uniswap

  • SushiSwap

  • Cryptokitties

  • PokerKing

  • Chainlink

  • MakerDAO

  • Aave

& so many more

Best Practices:

  1. Make sure that the DApp is legitimate and reputable

  2. Always be aware of the approvals and permissions that you accept for DApps

  3. Double-check URL’s and certificates of websites. Make sure that they are trusted and secure.

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