A decentralized application is a computer application that runs on a decentralized computing system. DApps have been popularized by distributed ledger technologies such as the Ethereum blockchain, where DApps are often referred to as smart contracts.

How does a decentralized app work?

Decentralized applications work on a peer to peer (P2P) model, meaning that the nodes are able to connect with each other directly. In a DApp, a transaction is processed through a consensus mechanism. When the majority of the nodes approve the transaction, it goes ahead and gets processed.

Is Bitcoin a decentralized app?

Bitcoin is distributed because its timestamped public ledger, the blockchain, resides on multiple computers. It's also decentralized because if one node fails, the network is still able to operate. That means that any app that uses a blockchain alongside other peer-to-peer tools can be distributed and decentralized.