DeFi, dApps and DAOs: The Key Differences

dApps On the technical front, D-apps are similar to smart contracts in structure, but there are two key differences. First, they have an infinite number of participants on all fronts. Second, they are not necessarily financial. Although digital assets are involved in transactions that occur within the application, they are not the primary objective... See more

2. Smart contracts are an important building block for DAOs, De-Fi, and D-apps.

4. DAOs are trust-less organizations owned and governed by community members. DAOs have smart contracts for decentralization and humans on the periphery for governance.

3. D-apps are a nexus of smart contracts backed by nodes across the spectrum. The difference between smart contracts and D-apps is that D-apps are open-ended on all fronts.

DeFi De-Fi is the branch of Web3 that is pushing the boundaries of financial services by making them more inclusive, secure, and decentralized. The primary objective of De-Fi platforms is to remove all middlemen from financial services and transactions.

6. De-Fi and D-apps differ on two major fronts. First, De-Fi projects are necessarily financial in nature while D-apps are not. Second, D-apps lack a comprehensive governance structure, that is an active component in De-Fi.

Key Takeaways 1. DAOs, De-Fi, and D-apps are completely different concepts and should not be used interchangeably in web 3.

Although D-apps, DAOs, and De-Fi are different from one another, there’s something that is at the heart of all three- smart contracts.

5. De-Fi is an emerging financial technology that uses distributed ledgers to remove middlemen from financial transactions. They are a combination of smart contracts and DAOs.