A Decentralized Application (dApp) is an algorithm that runs on distributed computer with access to a blockchain.

In the context of decentralized finance, or DeFi, dApps are often used to create financial products and services that are built on top of blockchain technology.

One of the key advantages of dApps in the context of DeFi is that they are decentralized, meaning that they are not controlled by a single entity, but rather operate on a network of computers that are distributed across the internet. This allows for greater security, transparency, and trustlessness, as there is no central point of failure and all transactions are recorded on the blockchain. Additionally, dApps can often be customized and extended, allowing users to create their own financial products and services using a wide range of available building blocks.

Overall, dApps play a crucial role in the DeFi ecosystem, providing the infrastructure and tools needed to create a wide range of financial products and services that are built on top of blockchain technology.

« Back to Glossary Index