# Decentralized Applications
Decentralized applications (dApps) are computer programs that run on a distributed computing system. Unlike traditional software, they don’t require a central server or data center to operate and can be used by anyone connected to the distributed network. This makes them incredibly secure, as there is no single point of failure that could be exploited to access sensitive user data or disrupt service.
A dApp typically consists of smart contracts running on a blockchain platform such as Ethereum and interacting with various services over an Application Programming Interface (API). A dApp generally requires its own token for users to interact with it in order to incentivize participation from developers and users, which also helps protect against malicious behavior by providing economic disincentives for bad actors. The tokens may represent ownership stakes in the application’s underlying technology or provide utility within the app itself – e.g., allowing users pay for goods/services using cryptocurrency instead of fiat money.
There are two types of decentralized applications: open source & closed source apps; both have their advantages & disadvantages depending upon your use case requirements. Open source projects benefit from greater transparency while ensuring privacy at all times due to decentralization; however this type tends not to offer customer support nor security guarantees like those found in closed-source models where development teams actively maintain codebase integrity through frequent audits and bug fixes/patches when needed . Closed sourced solutions often come with higher costs but promise better performance overall since they tend be more reliable thanks additional layers of protection put into place via private keys etc..
In conclusion, whether you’re looking for an enterprise solution or something small scale, decentralized applications present many opportunities across different industries–from finance & banking all the way down consumer markets – opening up new possibilities never before explored!
