Dapps, short for Decentralized Applications, are applications that run on a blockchain network, typically utilizing smart contracts. Unlike traditional applications that run on centralized servers, Dapps operate on a decentralized network of computers, ensuring transparency, security, and immutability.

Dapps are built using blockchain technology, which allows for the creation of trustless and censorship-resistant applications. They often have their own native tokens or utilize existing cryptocurrencies as a means of value exchange within the application.

One of the key characteristics of Dapps is that they are open-source, meaning that their code is publicly available for anyone to view, contribute to, and audit. This promotes transparency and community-driven development.

Dapps can have various use cases and functionalities, ranging from financial services such as lending and decentralized exchanges to gaming, social media, supply chain management, and more. They provide users with direct control over their data and assets, as well as the ability to interact with other users without relying on intermediaries.

It's important to note that not all applications built on blockchain networks are considered Dapps. To be classified as a Dapp, an application must meet certain criteria, including being decentralized, open-source, and utilizing blockchain technology for its core functionality.