How do Ethereum DApps work?
Ethereum Decentralized Applications (DApps) operate on the Ethereum blockchain, leveraging its smart contract capabilities. A DApp is designed to function independently, with no central authority controlling its operations. Here’s how they work:
1. Smart Contracts
At the core of every Ethereum DApp is a smart contract, which is a self-executing contract with the terms of the agreement directly written into code. These contracts are stored on the Ethereum blockchain and automatically execute actions based on predefined conditions.
2. Frontend Interface
DApps typically have a user interface built using web technologies (HTML, CSS, JavaScript). This frontend interacts with the smart contracts on the blockchain through libraries such as Web3.js, allowing users to send transactions and call functions on the smart contracts.
3. Decentralized Storage
To enhance decentralization, many DApps use decentralized storage solutions like IPFS (InterPlanetary File System) to store data off-chain, thus reducing on-chain storage costs while maintaining the integrity and availability of data.
4. Ethereum Virtual Machine (EVM)
The EVM is the runtime environment for executing smart contracts on Ethereum. When a DApp is deployed, its code becomes part of the Ethereum network, ensuring that it runs the same on every node, which fosters trust and security.
5. Interaction and Transactions
Users interact with DApps by sending transactions through their cryptocurrency wallets. Each transaction is verified by the Ethereum network, facilitating trustless interactions among users, which eliminates the need for intermediaries.
In summary, Ethereum DApps utilize smart contracts, decentralized storage, and the EVM, allowing for robust and secure financial applications that promote user autonomy.