Decentralized Application

A decentralized application, or dApp, is a digital application that runs on a distributed ledger or blockchain network rather than a centralized server. These applications are typically powered by smart contracts and are designed to be transparent, immutable, and censorship-resistant. dApps in the financial sector allow for trustless trading, lending, and borrowing without the need for traditional intermediaries.

The architecture of a dApp often involves a front-end interface interacting with back-end smart contracts. As the ecosystem matures, dApps are becoming increasingly sophisticated, offering features comparable to traditional financial platforms.