How Does a Decentralized App (dApp) Work?
Decentralized applications, or dApps, operate on blockchain or peer-to-peer networks rather than centralized servers. They use smart contracts and consensus mechanisms like Proof-of-Work or Proof-of-Stake to ensure transparency and trust. By distributing backend logic across multiple nodes and using decentralized storage solutions like IPFS, dApps provide enhanced security and censorship resistance. These applications eliminate intermediaries, reduce costs, and give users greater control over their data. Despite facing challenges such as scalability issues, complex user interfaces, and transaction fees, dApps are transforming industries like finance, gaming, and identity management, driving the growth of Web3 and a more decentralized internet.