DApp – Decentralized Application
DApps are open-source applications built on top of permissionless blockchains which is why they are referred to as decentralized. Ethereum was the first protocol DApps appeared on shortly after its launch in 2015.
Typically DApps are built around a series of smart contracts to execute the applications features. The applications often execute off chain with periodic settlement to a base layer protocol like Ethereum to try and save on user fees.
The first DApp to go mainstream was CryptoKitties. CryptoKitties is a blockchain game built on the Ethereum network centered around minting and trading Non-Fungible Tokens representing unique digital kittens.
While applications focusing on games and NFTs like Cryptokitties remain popular. Decentralized financial apps like Uniswap spearheaded a second wave of user adoption to generate financial returns from trading and staking cryptoassets.