DEFINITION of 'Decentralized Applications or dApps'

Decentralized applications (dApps) are digital applications or programs that exist and run on a blockchain or P2P network of computers instead of a single computer, and are outside the purview and control of a single authority.

BREAKING DOWN 'Decentralized Applications or dApps'

A standard web app, like Uber or Twitter, runs on a computer system which is owned and operated by an organization giving it full authority over the app and its workings. There may be multiple users on one side, but the backend is controlled by one single organization.

dApps can run on both a P2P network as well as a blockchain network. For example, BitTorrent, Tor, and Popcorn Time are examples of applications that run on various computers that are part of a P2P network where there are multiple participants on all sides' some are consuming the content, some are feeding or seeding the content, while others are simultaneously performing both functions.

In the context of cryptocurrencies, the dApps exist and run on blockchain network in a public, open source, decentralized environment and are free from control and interference from any single authority.

For example, a developer can create a Twitter-like dApp and put it on a blockchain where any user can tweet messages. Once posted, no one - including the app creators - can delete the tweets. Editing may be possible by the sender, but the original tweet would be retained forever.

RELATED TERMS
  1. Distributed Applications (ĐApps)

    Distributed Applications are software applications that are stored ...
  2. Blockchain

    A blockchain is a public ledger of all cryptocurrency transactions. ...
  3. Permissioned Blockchains

    Permissioned Blockchains require participants to identify themselves ...
  4. Peer-to-Peer (P2P) Service

    A peer-to-peer (P2P) service is a decentralized platform whereby ...
  5. Blockchain ETF

    Blockchain ETFs facilitate real-time trading on a basket of blockchain-based ...
  6. Path To Profitability (P2P)

    A clearly defined route to profitability as described in a business ...
Related Articles
  1. Tech

    Bitcoin 2.0 Applications (AMZN, EBAY)

    The bitcoin blockchain enables the application of decentralized public ledgers for purposes other than digital currencies referred to as Bitcoin 2.0 or sometimes more generally "crypto 2.0.”
  2. Tech

    Forget Bitcoin: Blockchain is the Future

    Blockchain is the technology that undergirds the cryptocurrency world, but itspotential uses extend much farther.
  3. Tech

    Is Ethereum More Important Than Bitcoin?

    Ethereum's market capitalization is only about a third of Bitcoin, but some think it is gaining ground fast.
  4. Tech

    How Blockchain is Revolutionizing Content Distribution

    As blockchain technology becomes more ubiquitous, centralized content hubs will no longer be able to exercise the same degree of control over the system.
  5. Tech

    How Does Blockchain Work?

    Blockchain technology supports the cryptocurrency space and many other promising applications.
  6. Tech

    Public vs Private Blockchains: Challenges and Gaps

    Despite the growing corporate embrace of public blockchains, there's a slow shift toward private blockchains.
  7. Tech

    Top 3 Books to Learn About Blockchain

    Here are reviews of three of the best available books on blockchain, a relatively new, but rapidly growing and very important technology.
  8. Tech

    All About Ethereum

    Here’s a detailed look at Ethereum, and what makes it so special and promising
  9. Tech

    How Blockchain Technology Can Prevent Voter Fraud

    As a technology, blockchain is quickly becoming unrivaled. One of the biggest problems that blockchain’s decentralized muscle can solve is voter fraud.
  10. Tech

    Goldman Sachs Adds Blockchain Page To Main Web Site

    Could Goldman Sachs' new blockchain page be an important sign about the future of the cryptocurrency and big banking worlds?
RELATED FAQS
  1. How does Twitter make money?

    Learn how Twitter earns revenue, including how the social media company uses three targeted advertising streams, data farming ... Read Answer >>
  2. How do BitTorrent sites like The Pirate Bay make money?

    Learn more about torrents, BitTorrent websites, uploading streaming content and how BitTorrent sites earn money through ad ... Read Answer >>
  3. What are the advantages of paying with Bitcoin?

    Learn how payments made with Bitcoins offer certain advantages over standard currency, including user anonymity, no taxation ... Read Answer >>
  4. Can Foreigners Open Savings Accounts in the US?

    Find out what it takes for a foreign individual to open a savings accounts in the US especially in the age of heightened ... Read Answer >>
  5. Who are Apple's main competitors in tech?

    Explore Apple's competitive position in the many industries in which it operates. Learn about the different products and ... Read Answer >>
Hot Definitions
  1. Investment Advisor

    An investment advisor is any person or group that makes investment recommendations or conducts securities analysis in return ...
  2. Gross Margin

    A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. ...
  3. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  4. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  5. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  6. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
Trading Center