Decentralized Application (DApp)

Decentralized apps, or DApps, are essentially smart contract-enabled blockchain-based iterations of apps made famous by the Ethereum network. They behave just like conventional apps—users shouldn’t notice the difference—but offer a more comprehensive range of features.

DApps represent a new method of connecting with personal finance. Traditional finance is generally associated with things like lending money, borrowing money, saving money, and other related concepts; if you will, a central authority like banks or other financial organizations powers each of these.

DApps are objects having the following attributes:

A DApp must function independently of third parties and have open-source code. Users must propose and vote on automatically applied modifications, making it user-controlled.
All data must be stored in a blockchain network that is open to the public. There cannot be a single point of attack; hence decentralization is essential.
DApps must use a cryptographic token of some kind to gain access, and they must pay contributors in that token, like miners, to acknowledge their work.
The consensus algorithm used by a DApp must produce tokens, such as proof-of-work (PoW) or proof-of-stake (PoW).

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