An application that is built on top of a blockchain network and operates using decentralized protocols.
Dapps have a few qualities which make them unique from centralized applications:
- Open Source: the code is available for anyone to view, audit and verify.
- Decentralized: the code is owned by the community as opposed to a centralized company or individual.
Dapps allow users to harness the capabilities of Web3. Unlike centralized applications, users don’t need a unique username or password to interact with dapps. Instead, users simply connect their wallet to the dapp.
What are some examples of Dapps?
There are many different categories of dapps, here are some common examples:
NFT marketplaces allow users to buy, sell, mint and create NFTs.
DeFi dapps allow users to access decentralized financial applications to perform activities like borrowing and lending crypto.
Decentralized exchanges or DEXs are a type of DeFi dapp that allows users to trade cryptocurrencies peer to peer.
Gaming Dapps allow users to claim ownership over the characters, items and experiences within the games that they play.
Social Dapps allow users to monetize their communities and reward creators who create valuable content.
Crypto tool dapps allow users to perform various actions like tracking the performance of their investments or the rarity of their NFTs.
Select here to learn more about using Dapps in Coinbase wallet.