What is a decentralized application and how does it work? A decentralized application, or dApp, runs on a blockchain or decentralized network, instead of a single, centralized server. Because it’s decentralized, no single entity has full control over the app, which makes it resistant to censorship and downtime. Most dApps are built on blockchains and use smart contracts to manage their operations. This means the core logic of the app is automated and self-executing, based on pre-defined rules.

Unlike traditional apps hosted on a server you can point to, dApps rely on a distributed network of computers, or nodes, to process and store data. This distribution gives dApps their unique features like transparency and security, but it also makes them a bit trickier to develop and maintain. They often come with a steep learning curve for users unfamiliar with blockchain technology.