Decentralized applications are one of the innovations of blockchain applications. They are transforming the way businesses operate. DApps are decentralized which means there is no central authority involved. Trust and data immutability are the factors that differentiate DApps from traditional apps. In DApps, data once written on the chain cannot be changed or erased. It runs on a peer-to-peer, therefore, information is continuously distributed between the participants instead of being stored on a central server.
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These DApps have their own blockchain, for example, Bitcoin and Ethereum. Other altcoins with their own blockchain also fall under this category.
These DApps leverages the blockchain of Type 1 apps. This breed of decentralized applications are protocols and have tokens necessary for their functioning.
These DApps use the protocol of the Type 2 DApps. These are decentralized data storage and communication networks that replace data centers and servers with the additional computing resources of its users.