Decentralised applications (Dapps) are just like the applications you use every day on your smartphone. However, in the context of cryptocurrencies, instead of a mobile phone, these Dapps run on a blockchain network in a public, open-source and decentralised environment.
While well-known applications like Instagram or Twitter have to fit the rules established by a third party such as Apple with their App Store, Dapps are free from control or interference from any single authority, with its internal code or rules dictating how the application runs found on a peer-to-peer network.
Dapps are made up of a smart contract and a front-end user interface – much like the body of a car (user interface) and its engine underneath (smart contract) powering the car – and can feature exchanges, games, marketplaces, social platforms and more.
The key selling point of Dapps centres around their ability to protect your privacy and ensure your personal data is not required to use them effectively. However, it is important to remember that much like the technology that surrounds them – smart contracts, consensus mechanisms and others – Dapps are still in the early stages of development. We recommend that you do your own research before starting to build your own.