In DeFi, a dapp often takes the form of a decentralised financial marketplace, such as a decentralised exchange (DEX), in which trades between users are automated. You can find these dapps and many more in the DeFi Wallet. There are many examples of dapps (e.g., Tectonic and VVS Finance) that offer various financial features. However, decentralisation is not monolithic, and there are designs with different levels of decentralisation, meaning that some dapps are actually controlled and managed by third parties. To continue with our social media theme, centralised social media apps like Twitter are normally designed for the app developer to have control over which users may use the platform and what content may be posted there.Ī decentralised structure, by comparison, allows for a design in which access to the app cannot be restricted, and users may moderate the content they see without impacting what others see. In the case of a dapp, rather than the app’s data living in a database on a server controlled by the company producing the app, the data lives on a blockchain, meaning it is decentralised to some degree. An example of a centralised application would be Instagram, which is produced by Meta, which controls the servers on which the app’s data lives. Before diving deep into the meaning of a dapp, let’s revisit what an ‘app’ is.Īpps (short for ‘applications’), such as those installed on your phone, are typically ‘centralised’, meaning they are built, maintained, and controlled by a centralised party, usually a company. Article Overview:ġ) What is a Dapp? A review of traditional appsĭeFi runs on decentralised applications (dapps). Here are five terms central to DeFi that you should know. Since its first appearance, the term has become well-known even beyond the crypto community.ĭeFi stands for decentralised finance, and with this new industry also comes its own jargon. There is a good chance you’ve come upon the term ‘DeFi’ in the media between 2019 and now.
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