What are decentralized applications (DApps)?

Published on Nov 3, 2022Updated on Sep 2, 20265 min read31

Decentralized applications (DApps) are applications that use a blockchain or another distributed network to execute core logic, record state, or manage digital assets. You typically use a DApp through a website or app and connect a self-custodial wallet to identify your account, sign requests, and submit onchain transactions.

What is a DApp?

Traditional applications usually rely on servers, databases, and account systems controlled by one organization. A DApp moves some of its core logic into smart contracts that a blockchain network executes and verifies.

DApp isn't necessarily fully decentralized. Its website, data indexing, file storage, governance, or operational services may still depend on one team or a third party. Review the control model of both its onchain contracts and offchain services.

How does a DApp work?

A DApp usually involves the following components:

  • Application interface: The website or app you use to view information and initiate actions.

  • Wallet: Connects your public address, displays assets, and signs actions.

  • Smart contracts: Process transactions, assets, or application state according to predefined rules.

  • Blockchain network: Verifies and records submitted onchain transactions.

Connecting your wallet usually shares only your public address with the DApp. Signing, approving, or submitting a transaction may create an order, grant token permissions, or transfer assets, so review every request carefully.

How is a DApp different from a traditional app?

  • Control: A DApp may use smart contracts for some core rules, while its interface and operational services may still be controlled by a project team.

  • Data and transactions: Confirmed onchain records are generally public and difficult to change. Offchain data doesn't necessarily have the same properties.

  • Accounts: DApps often use wallet addresses as onchain identities, but they may also offer email, social, or other login methods.

  • Fees and speed: Onchain actions may require network fees and depend on network congestion and confirmation times.

  • Recovery: Confirmed onchain transactions are generally irreversible, and a platform or wallet can't recover a lost private key or seed phrase for you.

What are the common types of DApps?

Common categories include:

  • Decentralized finance (DeFi): Trading, lending, staking, liquidity, and cross-chain services.

  • NFTs and digital collectibles: Creating, displaying, trading, or managing onchain digital items.

  • Gaming and social: Managing onchain characters, items, identities, or social relationships.

  • Inscriptions and token tools: Creating, viewing, or trading inscriptions and tokens on supported networks.

  • Infrastructure and tools: Block explorers, analytics, identity, governance, and developer services.

Specific DApps, features, and supported networks change over time. Don't rely on a static list of popular projects to determine whether a product is still available or safe.

How do I access a DApp with OKX Wallet?

  1. Open OKX Web3 Discover, or use an official link verified by the project.

  2. Check the website address, network, and contract address.

  3. Select Connect wallet and confirm which wallet address the DApp requests.

  4. Read each signature, approval, or transaction request.

  5. Confirm the token, amount, recipient, network fee, and permission scope.

  6. After submitting, check the onchain status in your wallet history or a block explorer.

If you no longer use a DApp, review its token approvals in your wallet's approval management feature and revoke them when needed. Revoking an approval usually requires an onchain transaction and a network fee.

What are the risks of using a DApp?

  • A phishing website may imitate a legitimate DApp and ask you to connect your wallet or sign a malicious request.

  • An excessive token approval may allow a smart contract to transfer tokens within the approved scope.

  • A smart contract may contain vulnerabilities, administrative permissions, upgrade risks, or pause mechanisms.

  • A DApp interface, oracle, cross-chain bridge, or other offchain service may fail.

  • Onchain transactions are generally irreversible. A wrong address, wrong network, or malicious signature may result in asset loss.

  • Token prices, liquidity, and network fees may change quickly.

  • A listing in OKX Web3 Discover doesn't mean that OKX guarantees a project's security, returns, or continued operation.

Note: never share your private key or seed phrase. OKX Support and legitimate DApps won't ask for them.

FAQ

Is every DApp fully decentralized and open-source?

No. A DApp may put only part of its logic onchain, while its interface, data services, governance, or administrative permissions remain centralized. Whether its code is open-source depends on the project.

Will connecting my wallet transfer my assets?

Usually not. Connecting a wallet generally shares only your public address. However, a later signature, approval, or transaction may change onchain state or allow a contract to use your tokens. Review the request before signing.

Can revoking an approval recover assets I've already lost?

No. Revoking an approval can stop a contract from using tokens that haven't been transferred, but it can't reverse confirmed onchain transactions or recover assets that have already left your wallet.

Do I always need to pay a network fee when using a DApp?

It depends on the action. Viewing public data or connecting a wallet usually doesn't require a network fee. Submitting a transaction, granting an approval, or revoking an approval usually does.

Does OKX control third-party DApps?

No. OKX Wallet is self-custodial wallet software that helps you discover and connect to third-party DApps, but it doesn't control their services, smart contracts, or operational decisions.