Decentralized applications (DApps) are software applications that run on blockchain networks rather than centralized servers. Unlike traditional applications, DApps operate in a trustless environment, utilizing smart contracts to execute transactions, automate processes, and ensure transparency. They are widely used in decentralized finance (DeFi), gaming, NFTs, and social networking.

How DApps Work:
DApps leverage blockchain technology and smart contracts to function without central authority. Key characteristics include:

Blockchain-Based: Transactions and data are recorded on a decentralized ledger, ensuring security and immutability.
Smart Contracts: Self-executing code automates operations and eliminates the need for intermediaries.
Open-Source & Transparent: Many DApps operate with publicly viewable code, increasing trust and security.
Incentivization Models: DApps often use tokens to reward users and maintain network participation (e.g., governance tokens, staking rewards).
Censorship Resistance: No single entity can alter or take down a DApp, making it resistant to control.
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By combining these elements, DApps provide decentralized, secure, and user-driven digital experiences.