# 6. Dapps (Decentralized application)

• DeFi is heavily dependent on Dapps. To understand DeFi's capabilities, you need to understand the concept behind Dapps. Dapps are programs designed to operate in decentralized networks. These networks can be Blockchain, or Network or Distributed Ledger Technology (DLT). An important component of these protocols is their decentralized nature. There is no central authority, corporation, or authority that oversees and approves the business functions of these applications.

• In fact, Dapps require very little human intervention. Instead, these platforms integrate advanced smart contracts to streamline their business systems. Smart contracts are pre-programmed protocols that start when they receive cryptocurrencies to their addresses. Crucially, smart contracts can handle a wide variety of tasks from customer approvals to payments.<br>


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