You may have come across the term "DApps" in Avacus's in-app browser or in various articles. What exactly does it mean? Here, we'll explain the basics of DApps and how they differ from regular apps.
The Basics of DApps
DApps stands for "Decentralized Applications" — applications that run on a blockchain. There are many types of DApps, including DEXs (decentralized exchanges) like Uniswap, lending services, and games.
How DApps Differ from Regular Apps
Typical apps (such as banking apps or social media) store and process data on servers managed by the operating company. Users log in with an ID and password, trusting that company to hold their assets and information.
DApps, on the other hand, run on smart contracts (programs) on the blockchain rather than on a specific company's servers. Since data and transaction records are stored across the blockchain in a distributed manner, no single company can unilaterally rewrite information or shut down the service.
"Connecting Your Wallet" Instead of Logging In
DApps don't have the usual concept of logging in with an ID and password. Instead, users verify their identity and execute transactions by connecting their wallet (such as Avacus) to the DApp.
For example, if you want to swap ETH for USDT on Uniswap, you connect your wallet, review the transaction details, and then approve the transaction from your wallet to execute it. Throughout this process, control over your assets always remains with your own wallet — the assets themselves are never handed over to the DApp.
Things to Watch Out For When Connecting
Connecting your wallet to a DApp is similar to handing over a key that authorizes transactions. If you connect to an untrustworthy DApp, you risk being tricked into approving unintended transactions or having your assets stolen.
Avoid connecting to unfamiliar sites, DApps with no official announcement behind them, or DApps promising unnaturally high returns. Always use official URLs or the in-app browser as directed.
Summary
- DApps are applications that run on smart contracts on a blockchain
- Data and processing are handled in a distributed manner on the blockchain, rather than by a central operating company
- Instead of logging in, users verify their identity and execute transactions by "connecting" their wallet
- Control over your assets always remains with your own wallet, but caution is needed when connecting to untrustworthy DApps