Decentralization Fundamentals

Module 2: What are DApps, and how do they work?

In this module, you'll learn about decentralized applications (DApps), discover what they are, and understand how they differ from conventional programs.


Decentralized applications, or simply DApps, are blockchain-based applications that operate using smart contracts. These programs adhere to three key principles: they have open-source code, store information encrypted in a public blockchain, and possess a tokenized system.

DApps typically do not appear visually distinct from regular applications, but they have a different structure—a collection of data and smart contracts recorded on the blockchain. In contrast, centralized applications usually store information on servers.

DApps offer several advantages over other programs. The most significant ones include reliability and absence of single points of failure, transparency through the use of open-source code, and limited developer capabilities, preventing unilateral changes to the application's logic and principles without community support.

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