Glossary

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Glossary: Decentralized Application (dApp)

A decentralized application, or dApp, is an app that runs on a blockchain or decentralized network, using smart contracts instead of relying only on a central company-controlled server.

What is a Decentralized Application (dApp)?

A decentralized application, or dApp, is an app that runs on a blockchain or decentralized network, using smart contracts instead of relying only on a central company-controlled server.

Decentralized Application (dApp) Explained

A dApp is an app that uses blockchain technology behind the scenes.

A normal app usually depends on one company’s servers to store data, process actions, and control access.

A dApp uses smart contracts and blockchain records for some of those actions. This can let users connect with a wallet, own digital assets, or interact without a central middleman.

For example, a decentralized exchange is a dApp because users can trade tokens through smart contracts instead of a company holding their funds.

What a Decentralized Application (dApp) Means For

Audience	Use Case
Crypto users	Use blockchain-based products such as DEXs, lending apps, NFT marketplaces, or games.
Web3 developers	Build apps where smart contracts handle transactions, ownership, permissions, or rewards.
Protocol and product teams	Create user experiences that connect wallets, tokens, and on-chain activity.

Examples

A decentralized exchange lets users swap tokens directly from their wallets through smart contracts.
A DeFi lending dApp allows users to deposit crypto, borrow assets, and repay loans on-chain.
An NFT marketplace lets users mint, buy, sell, and transfer digital collectibles using blockchain transactions.
A blockchain game uses a dApp so players can own, trade, or upgrade in-game items as tokens.

FAQs

What does dApp stand for?

dApp stands for decentralized application.

How is a dApp different from a normal app?

A dApp uses blockchain or smart contracts instead of relying only on central company servers.

What are dApps used for?

dApps are used for trading, lending, gaming, NFTs, governance, identity, and other Web3 services.

Do you need a wallet to use a dApp?

Usually yes. Most dApps require a crypto wallet to sign transactions or connect an account.

Are dApps risky?

Yes. dApps can involve smart contract bugs, scams, wallet mistakes, and market risks.

Related Terms

A/B Testing

An experiment that compares two versions of a page, feature, or campaign to see which performs better.

Account Abstraction

Account abstraction is an approach that turns blockchain accounts into programmable smart contract wallets, enabling features like gasless transactions, social recovery, session keys, and paying fees in any token.

Activation Rate

Activation rate is the percentage of new users or wallets that complete a key activation milestone, such as a first transaction, out of all users who signed up or connected within a given period.