How it works
The user interface may still be hosted by a normal company or website even when settlement occurs on-chain. A dApp can therefore combine decentralized and centralized components.
What to check
Check which parts are on-chain, who controls the interface and contracts, and what wallet permissions are required.
- Separate front end from contracts
- Review wallet permissions
- Identify admin and oracle dependencies
Limits and risks
Calling an application decentralized does not remove operator, smart-contract, oracle or governance risk. Availability can still depend on centralized infrastructure.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.