DApp is an abbreviated form for decentralized application.
For an application to be considered a Dapp (pronounced as Dee-app), it must meet the following criteria:
- A Dapp must be completely open-source. It should operate autonomously, without any single entity controlling the majority of its tokens. The application can adjust its protocol in response to proposed improvements and market feedback, but all changes must be agreed upon by the consensus of its users.
- To avoid any central points of failure, it is essential that the Dapp's data and operation records are securely stored in a public, decentralized blockchain using cryptographic methods.
- The Dapp must utilize a cryptographic token, such as Bitcoin or a token native to its system, as a prerequisite for accessing the application, and rewards for contribution of value from miners or farmers in the application.
- The application should generate tokens through a standard cryptographic algorithm that serves as proof of the value contributed by nodes to the application. An example of such an algorithm is the Proof of Work Algorithm used by Bitcoin.