What are Decentralized Apps or DApps?

Blockchain-based Decentralized Apps or DApps can do anything web or mobile apps can do, while maintaining privacy, keeping immutable records and bypassing middlemen.

The diversified use of Blockchain technology has evolved over the years and most of the applications can be used using the given technology while maintaining their secrecy. Decentralized Applications are called DApps in the crypto universe.

It’s time to cut out the middleman. DApps provide the services or connect the user directly to service providers without any extra cut of their own. That’s the promise being offered by Dapps, or decentralized apps.

Difference between DApps and Apps?

There are minute differences between a decentralized app running on blockchain technology and a traditional app running on the web or an operating system from the perspective of a user.

The main difference between the two is that decentralized apps or DApps run on well distributed and immutable blockchain networks and are not controlled by any person, organisation or central operating system. This makes them essentially impossible to redact or in simple terms hack-proof.

Features of DApps

DApps are normal apps and offer similar functions and features, but run on a peer-to-peer network, which is mostly a varied form of a blockchain. There is no person to control the network.

There are other key features as well:

Open Source

It must be open-source and operate on its own without an entity controlling it. It makes it decentralized.

Public Data

Its data and records must be publically available.

Usage of a token

It must use a cryptographic token to keep the network safe and secure.

DApps run everything. From marketplaces to games and decentralized finance (DeFi) lending platforms. DApps generally share various basic features, which set them apart from their centralized kin.

Interestingly, based on these definitions, Bitcoin itself qualifies as a DApp, albeit one with its own built-in blockchain.

Benefits of the DApps

Almost all DApps have smart contracts at their core, which are basically self-executing agreements with the terms between buyers and sellers written into the code. There are various exciting aspects of the DApps:

Censorship resistant

There is no scope of failure. With no single point of collapse, it’s very difficult for any authority or powerful figures or personalities to control the network.

No downtime

Reliability on the peer-to-peer blockchain system ensures the DApps continue to work even if individual computers or parts of the network/servers suffers downtime.

Based on Blockchain

As the Blockchains are made of smart contracts, they can easily integrate cryptocurrencies into the basic functionalities of the DApps.

Open Source

Having open sources encourages the widespread development of the DApp ecosystem. It enables developers to build better DApps with more useful or interesting functions.


Smart contracts can be written and executed privately, without the need to identify the parties.

Smart contracts are ‘Trustless’

In the blockchain or crypto world, anonymous parties can trust the contract because they don’t need to trust each other to carry out a transaction. These can be relatively straightforward – trading one cryptocurrency for another or buying a piece of art on an NFT marketplace – or very complex.

Drawbacks or Weakness of DApps

Every strong thing has some weakness. DApps promise to remedy a range of the key issues faced by regular mobile or web-based apps, they do have their downside.


Many apps are run on open-source smart contracts, allowing hackers the rare opportunity to probe the networks looking for their weaknesses. This has led to a spate of hacks on various popular DApps.


Multiple DApps have low quality or low grade user-interfaces, which have put a lot of users off. One can read all reviews on these services. However, this gives ample scope for improvement.


The more users a DApp has, the more effective the network is at delivering those services like many apps in Web 2.0. This is often referred to as the network effect.

Less Interactive

DApps struggle from low user numbers. This diminishes their interactiveness. This poses a threat to their security as a DApp’s security can often rely on how many users it has.


Any mistake in writing the contract or exploit found by unscrupulous parties cannot be reversed. That means that smart contracts must be analyzed to guarantee they will be executed in the way intended.

There are more than 2,000 DApps available which can be accessed through the website of the “State Of The DApps” which are built on the networks like Ethereum, EOS, Tron and NEO.

The most popular DApps at present are decentralized crypto exchanges or DEXs. They enable people to swap one cryptocurrency for another without the need for a centralized gatekeeper which is found on multiple mainstream exchanges.

What are CryptoKitties?

They are one of the most well-known DApps and became a sensation soon after its launch in 2017. They represent unique non-fungible tokens (NFTs), which can not be stolen. In this DApp, users buy, breed and collect digital cats.

Trivia: The most expensive CryptoKitty was sold for $170,000 and the one-millionth CryptoKitty, called Vulcat, was born on September 12, 2018.

Building a Business

DApss can be used to build a whole new way for a business. One of them is fantasy sports or betting apps. The network is maintained by its users.

DApps are still in the early stages. But there are an array of services that can be offered by them, including playing games, exchanging value or growing personal digital livestock.


Disclaimer: Angel One Limited does not endorse investment and trade in cryptocurrencies. This article is only for education and information purposes. Discuss with your investment advisor before making such risky calls.