Simple definition
A decentralized application, or dApp, is an app whose back end runs on a blockchain network instead of on one company's servers.
How it works
- You open the dApp in a browser or app.
- You connect your wallet to sign in, instead of using a password.
- Actions you approve are carried out by smart contracts and recorded on the blockchain.
Everyday example
In real life
A community marketplace dApp lets you sign in with your wallet and buy from sellers directly.
Benefits and why this matters
Why this matters
Decentralized apps are how most people actually meet Web3. Knowing what happens when you connect a wallet keeps you safe.
- Sign in without handing over a password
- Rules and records are open to inspect
- Less reliance on one company
Risks and limitations
Things to watch out for
- Watch out: Connecting your wallet to a harmful dApp can put funds at risk
- Watch out: Can be harder to use than normal apps
- Watch out: Often early and unfinished
Your beginner action
Try this
Before you connect a wallet to any dApp, check how long it has existed, who made it, and what permission it asks for.