Protocols & Platforms
dApp
Decentralized Application
Application running on blockchain rather than centralized servers
Definition
A decentralized application (dApp) is an application that runs on a blockchain network rather than centralized servers. dApps use smart contracts for their backend logic and typically have no single controlling authority.
Example
Uniswap, Aave, and Compound are popular DeFi dApps that run entirely on Ethereum using smart contracts.
What to check
Treat it as infrastructure: understand what it automates, what trust assumptions remain, and how failures propagate. The main checks are: Smart contract bugs; Frontend attacks; Governance risks.
Risks to Consider
- Smart contract bugs
- Frontend attacks
- Governance risks
Common Questions
What does dApp mean in DeFi?
dApp means Application running on blockchain rather than centralized servers. The useful question is not only the definition, but how the mechanism changes risk, return, liquidity, or governance for the user.
How is dApp used in practice?
A practical example: Uniswap, Aave, and Compound are popular DeFi dApps that run entirely on Ethereum using smart contracts.
What should I check before relying on dApp?
Check smart contract bugs, frontend attacks, governance risks. Also verify liquidity, oracle assumptions, admin controls, and whether the protocol has been tested during stressed markets.
