Decentralized applications (dApps) are software applications that operate on a blockchain network, offering enhanced security, transparency, and autonomy. These applications are built using smart contracts, which are self-executing agreements coded on the blockchain.
Smart contracts ensure that the rules and conditions of the application are enforced automatically, removing the need for manual intervention and reducing the potential for fraud or manipulation.
One example of a decentralized application is “Uniswap.” Uniswap is a decentralized exchange protocol built on the Ethereum blockchain. It allows users to trade cryptocurrencies directly with one another, without the need for a centralized exchange. The application utilizes smart contracts to facilitate token swaps, ensuring that transactions are executed securely and transparently.
