DApp (Decentralized Application)

Tens of thousands of DApps operate across blockchains such as Ethereum and Solana, fulfilling a wide range of functions. Examples include decentralized exchanges (DEXs), where traders can swap digital assets directly from their wallets; lending protocols such as Aave, which allow users to borrow and lend without a centralized broker; and token launch platforms like Pump.fun. DApps also encompass games, social networks, yield protocols and more.

DApps stand in contrast to traditional applications because they do not run on a centralized server operated by a company. Instead, they run on shared networks where core functions can operate without relying on a single central operator. DApp user interfaces are often indistinguishable from regular web apps; however, their back end runs on the blockchain.

When a user interacts with a DApp, they sign transactions with their wallet, which triggers the blockchain to execute the relevant smart contract code. The code governing these transactions is publicly inspectable on-chain, with each interaction recorded on the blockchain.

This transparency is sometimes viewed as a drawback, since some users would prefer their trades and other interactions to remain private. Other drawbacks include slower processing speeds (especially during periods of high network congestion), relatively high fees and a higher technical barrier to entry for users. Flaws in the code of smart contracts can also lead to exploits or accidental loss of funds.