Decentralization
What Are Dapps
DeFi, smart contracts, dApps, and DAOs — software replacing middlemen.
In this lesson
- What makes an app 'decentralized'
- How users connect to dApps
Key takeaways
- 1A dApp runs its backend logic on-chain via smart contracts
- 2Users connect through a wallet, not an account
- 3Its open code can be independently verified
Lesson summary
A dApp is an application whose core state or execution depends on smart contracts.
Mental model
The core idea behind dapps
A dApp is an application whose core state or execution depends on smart contracts. The interface can look normal, but the trust model changes underneath.
The aim here is not vocabulary; it is being able to explain dapps to someone else without notes.
- What makes an app 'decentralized'
- How users connect to dApps
Mechanics
How to reason about dapps
The front end helps users build transactions.
The wallet signs actions and submits them to the chain.
The smart contract applies the rule and updates on-chain state.
If you remember one thing about how dapps works, make it this — a dApp runs its backend logic on-chain via smart contracts.
- A dApp runs its backend logic on-chain via smart contracts
- Users connect through a wallet, not an account
- Its open code can be independently verified
Example
A concrete dapps example
A DEX website may disappear, but if the contracts are still live and accessible, users can interact through another interface or directly through the chain.
Swap in your own product or market and the same dapps logic should still hold; if it doesn't, you have found an assumption worth checking.
A dapps example earns its place by changing what you would actually do next, not by sounding impressive.
Common mistakes
What to unlearn about dapps
Users often trust the website instead of the contract. A malicious or compromised front end can trick users into signing a harmful action.
Notice the pattern behind most dapps errors: a tidy, confident story quietly replaces a fact you could have verified.
Spotting this dapps error in others is easy; the skill is catching it in your own reasoning when you feel confident.
Risk notes
What can go wrong with dapps
dApps inherit risks from contracts, front ends, wallets, RPC providers, oracles, and every protocol they compose with.
Before relying on dapps, separate what you can verify from what you are taking on trust, and treat the trusted part as the real risk.
With dapps, the point is not fear but calibration: match the size of the decision to the strength of the evidence.
- Separate front end from contract.
- Know what the wallet is signing.
- Identify one dependency risk.
Practice
Practise dapps before moving on
Don't leave What Are Dapps as theory. Run it against a concrete Decentralization situation you can actually inspect.
Write your dapps answers as specific, testable sentences; if a sceptic could not challenge them with evidence, they are still too vague.
- Separate front end from contract.
- Know what the wallet is signing.
- Identify one dependency risk.
Review
Key terms
- DApp
- Decentralized Application — software whose backend logic runs on a blockchain via smart contracts.
- DeFi
- Decentralized Finance — permissionless, composable financial services built on smart contracts.
- Smart Contract
- Self-executing code on a blockchain that runs exactly as written when conditions are met.
- Wallet
- Software or hardware that stores the private keys controlling your on-chain assets.
- On-Chain
- Data or activity recorded directly on the blockchain.
Source notes
Editorial references
These references are starting points for verifying the mechanisms, risk checks, and product context behind this lesson.
Before you continue
Can you do these?
- Separate front end from contract.
- Know what the wallet is signing.
- Identify one dependency risk.
Related learning
Keep reading
Checkpoint
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Pass the check to save progress, then continue through the track in order.
Lock in this lesson
Answer every question correctly to complete the lesson.
A dApp differs from a normal app because…