▪️Smart Contracts and Decentralized Applications

Decentralized Applications (dApps) are applications that run on a peer-to-peer network of computers rather than a single computer. dApps use blockchain technology and smart contracts to create a decentralized network that is not controlled by any single entity. These applications are often open-source, operate autonomously and a majority of them offer some form of token to incentivize network participants. dApps can be developed for various uses such as gaming, finance, social media, and more, with the underlying principle that they operate on a decentralized network providing users with greater control and security over their data compared to traditional applications. The decentralized nature of these apps means they are resistant to censorship and downtime, as they do not rely on a single point of control or failure.

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically enforce and execute the terms of a contract when predefined conditions are met, without the need for intermediaries. This automation ensures that transactions and agreements are carried out transparently, securely, and efficiently. Smart contracts are immutable once deployed, meaning their code cannot be changed, which guarantees that the rules and conditions set forth will be followed without manipulation. They play a crucial role in the functionality of dApps, enabling complex applications such as decentralized finance (DeFi) protocols, NFT marketplaces, and more, by ensuring trust and reducing the need for traditional third-party verification.