Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

Which is a key characteristic of a decentralized application?

1. No anonymous logins

2. Active censorship

3. No owners

4. Download and play

The correct answer is: No owners

A key characteristic of a decentralized application (dApp) is that it operates on a blockchain or peer-to-peer network, which inherently means that it lacks a centralized governing authority or ownership. This decentralization allows for increased transparency, as the application’s code is often open-source, and its operations are governed by protocols rather than a single entity. Because a dApp has no owners in the traditional sense, it cannot be controlled or manipulated by a single individual or organization, which enhances user trust and security. This feature contrasts with centralized applications, where a single entity can dictate terms of service, adjust protocols, or even shut down the application at will. In contrast, other attributes like anonymous logins or active censorship do not define dApps. Some dApps may allow for anonymous interactions, but this is not a blanket rule for all. Additionally, while many dApps resist censorship due to their decentralized nature, they could still face challenges based on network governance or specific protocols. The statement about downloading and playing does not inherently characterize the decentralized nature of dApps, as many applications, whether decentralized or centralized, may offer downloadable content or functionalities.