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dApps

web3 infrastructure • tools • interfaces

dApps (decentralized applications) are software applications that run on blockchain networks instead of centralized servers. They use smart contracts to execute functions and offer services such as finance, gaming, social media, and marketplaces. dApps are typically open-source, censorship-resistant, and operate without intermediaries, giving users greater control and transparency.

Use Case: A decentralized exchange (DEX) dApp enables users to trade tokens directly from their wallets without relying on centralized custody, reducing counterparty risk and enhancing sovereignty.

Key Concepts:

  • Smart Contracts — The programmable backbone of dApps that execute rules automatically.
  • DeFi — A category of dApps offering lending, borrowing, and yield strategies.
  • NFTs — Digital assets frequently integrated into dApp ecosystems for gaming and marketplaces.
  • Web3 — The broader framework in which dApps operate, emphasizing decentralization and user ownership.

Summary: dApps shift power from centralized platforms to decentralized ecosystems. By leveraging smart contracts and blockchain networks, they provide transparent, trustless, and user-controlled alternatives across industries from finance to entertainment.

Aspect dApps Traditional Apps
Control User-governed, decentralized Company-controlled, centralized
Infrastructure Runs on blockchain nodes Runs on private servers
Transparency Open-source, verifiable on-chain Opaque, backend closed to users
Censorship Resistance Hard to censor or shut down Easily removed or blocked

Capital Rotation Map – dApp Ecosystem Flow

Stage dApp Function Capital Flow Effect
1 — Onboarding Users connect wallets and deposit assets Liquidity enters decentralized ecosystems
2 — Utility Smart contracts enable lending, trading, or gaming Capital circulates within dApp platforms
3 — Rewards Users earn tokens, NFTs, or yield incentives Capital expands through incentive distribution
4 — Rotation Profits moved to other dApps or asset classes Capital rotates across DeFi, gaming, and marketplaces

 
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