dApps (Decentralized Apps)

In one minute

What is a dApp? A website or app that talks to smart contracts on a blockchain. The rules live on-chain.
Key difference: Instead of trusting a company's database, users interact with code that anyone can inspect.
You'll need: A wallet, some of the network's native coin for gas, and the correct network selected.

Note: Educational only — not financial advice. Never share your seed phrase. Start with tiny test transactions.

A normal website or mobile app. It connects your wallet and prepares transactions for the blockchain.

Wallet connect: The app asks your wallet to sign messages or send transactions.
Read data: It reads prices, balances, or NFT metadata from on-chain data or indexers.

Programs deployed on a chain. They keep balances, enforce conditions, and emit events. See Smart contracts.

Your wallet holds your private key. Transactions are authorized by your signature, not by a username/password on a company server.

Each action that changes state costs gas in the chain's native coin. Some chains and Layer 2s are much cheaper than others.

Swap tokens, earn yield, borrow/lend, or issue stablecoins — all by interacting with contracts.

Mint unique items (art, tickets, memberships), trade them on marketplaces, or use them to access communities.

See NFTs.

On-chain items, marketplaces, identity, social apps, and DAOs where token holders vote on changes.

Open the dApp's website from an official link.
Click "Connect wallet." Your wallet asks for permission; approve if the site is legit.
Pick an action (e.g., swap tokens). The dApp prepares a transaction.
Your wallet shows the details (to, amount, gas). You confirm or reject.
Transaction is sent to the network, mined/validated, then confirmed.
The dApp updates to reflect the new on-chain state.

Tip: If a token is new, you may need to add its contract address to your wallet to see the balance.

On-chain: Balances, token ownership, smart-contract state.
Off-chain: Images, large metadata files, analytics dashboards. Often stored on IPFS or regular servers, then referenced on chain.
Why it matters: If important data is off-chain, the app depends on that external storage/host to stay online and honest.

Self-custody: You control the keys; you sign every action.
Allowances (approvals): For fungible tokens, you often "approve" a contract to move a limited amount on your behalf. Use the smallest reasonable amount and revoke unused approvals later.
Multisig & timelocks: Projects often protect admin actions with multiple signers and time delays.

Fees vary: Busy networks have higher gas prices. Layer 2s generally lower costs by batching many transactions.
Finality: Some chains confirm quickly; others need several blocks for strong finality.
Bridges: Moving assets across chains/L2s adds risk. Test with a small amount first.

Official links only: Use the website linked in the project's docs or verified social profiles.
Audits & open source: Are contracts audited? Is the source code verified on a block explorer?
Admin controls: Who can upgrade, pause, or change fees? Look for multisigs and timelocks.
Adoption signals: Real usage (volume, active addresses), community support, and clear documentation.
Risks disclosed: Good projects explain risks (oracle issues, market risk, smart-contract risk).

Wrong network: Trying to use a dApp on the wrong chain.
No gas: Forgetting to keep a little native coin for fees on the chain you are using.
Fake sites: Clicking sponsored ads or typo domains. Bookmark the official URL.
Unlimited approvals: Granting infinite token allowances. Approve only what you need and revoke later.
Copycat tokens: Not checking the exact token contract address from official docs.

Educational content only. Do your own research.

dApp: App that uses smart contracts on a blockchain.
Wallet: Software/hardware that holds your private keys.
Gas: Fee paid to the network to run your transaction.
Approval/Allowance: Permission for a contract to move your tokens up to a limit.
Bridge: Tool to move value across chains or L2s.
DAO: On-chain organization where token holders vote.