dApp

A dApp (decentralized application) is software that runs on a blockchain network using smart contracts for its backend logic. Unlike traditional apps hosted on company servers, dApps have their core functionality on-chain, making them resistant to censorship and single points of failure.

dApp Architecture:

dApp Categories by Usage:

1. DeFi: Uniswap, Aave, Curve (largest category)
2. NFT Marketplaces: OpenSea, Blur, Magic Eden
3. Gaming: Axie Infinity, Illuvium, Gods Unchained
4. Social: Farcaster, Lens Protocol
5. Governance: Snapshot, Tally
6. Identity: ENS, Worldcoin

How Users Interact with dApps: 1. Connect a wallet (MetaMask, Phantom, Coinbase Wallet) 2. The dApp reads blockchain data to display information 3. When the user wants to take an action, the dApp creates a transaction 4. The user approves the transaction in their wallet 5. The transaction is submitted to the blockchain and confirmed

Benefits: - No single entity can shut down or censor the application - Transparent code that anyone can audit - User data stays under user control - Global access without geographic restrictions

Limitations: - Slower than centralized apps (limited by block times) - Transactions cost gas fees - Poor error messages compared to traditional software - Wallet management adds complexity for new users - Frontend hosting is often still centralized

dApp Metrics: DappRadar and DefiLlama track dApp usage. As of early 2026, there are over 15,000 active dApps across all chains, with DeFi protocols accounting for the majority of on-chain value.