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Are you new to crypto and hearing everyone talk about dApps but not quite sure what they are? I was in the same boat, so today I’ll share what I’ve learned about this topic.
dApp stands for Decentralized Application, or simply a decentralized app. They are built on blockchain networks and require support from Smart Contracts to operate. To put it more simply, a dApp can be understood as an application designed to solve specific problems in a particular field, but instead of running on a centralized server of a company, they run on the blockchain.
What’s special about dApps? It’s their decentralization — no one can fully control what you do on them. Additionally, most dApps are open source, allowing the community to build other projects based on their code. An important point is that any blockchain cannot create a dApp on its own — it must support Smart Contracts. That’s why Ethereum is an ideal platform for these applications. Ethereum launched its first dApp in April 2016.
If we classify by blockchain, there are three levels. Type I includes independent blockchains like Bitcoin or Ethereum. Type II consists of protocols running on Type I and having their own tokens. Type III runs on Type II and also has its own token. If we categorize by purpose, what a dApp is depends on its application — there are dApps for exchanges, gaming, finance, and even gambling.
In reality, dApps are created to address specific issues. We see decentralized exchanges like Uniswap or PancakeSwap as examples of these applications designed to solve decentralized trading problems. There are dApps focused on payments, some on Oracle services to bring real-world data into crypto, and even dApps serving healthcare or charity.
Overall, what is a dApp? It’s a significant step forward for blockchain. Thanks to Smart Contracts, anyone can create an application to serve their own needs or the community’s. With the benefits they offer, the number of dApps will continue to grow in the future. I believe this is a trend that will reshape how we use technology.