A dApp stands for Decentralized App. dApps are built using smart contracts to provide blockchain-based applications for users. The variety of dApps range from games like Crabada and StepN, to Defi apps like Curve and AAVE.
The dApps make blockchain ecosystems more dynamic and provide blockchain-based substitutes for centralized apps. For instance, there are decentralized apps for social networks like Lenster and Phaver.
DeFi dApps have also re-envisioned how borrowing and lending can work in Finance. For instance, blockchain-based solutions like Automated Market Makers (AMMs) provide a pool for lenders and borrowers to deposit and withdraw assets without the need for a middleman. This is different from the typical way lending and borrowing works in traditional finance, where third-parties are required to build connections between buyers and sellers.
Most dApps are still in their early stages and their state today is compared to the mid 90s during the Internet boom, when companies like Netscape and ebay were started. dApps aim to provide decentralized solutions to real-world problems just like the early internet companies did in the 90s and 2000s. Many people are excited about blockchain technology and dApps potentially disrupting industries throughout the economy in the future.