By the end of this post, you’ll understand what dApps are, how they work, and why they represent the future of blockchain innovation.

Decentralized applications (dApps) are digital applications that run on blockchain networks instead of centralized servers. They use smart contracts to execute functions automatically and transparently. Unlike traditional apps, which are controlled by a single entity, dApps operate on decentralized networks, offering users more autonomy, security, and trust.

In this guide, we’ll explain the two most prominent consensus mechanisms—Proof of Work (PoW) and Proof of Stake (PoS)—their differences, and why they matter in the blockchain world.

A consensus mechanism is the process by which a blockchain network agrees on the validity of transactions.