Every day, tons of dApps are released and marketed, and it is your responsibility to conduct adequate research before interacting with any of them. Here are some ways to check if a DApp is safe to use:
Is it Open-source?: Open-source applications are freely accessible to the public. Thus, technical users in the ecosystem can review the codebase checking for malicious intent.
Is it truly decentralized?: dApps should have no single or hierarchical entity dominating them. You should therefore be careful when trusting highly centralized “dApps” with your assets,.
Low-Downtime: A dApp’s public ledger should have an efficient network structure that would allow you to take quick corrective steps when things go sour.
On the other hand, you should avoid blockchain-based applications that:
- Are not transparent. Avoid DApps that aren’t transparent and refuse to be audited by a trusted third party because they could be a hoax.
- Run Ponzi/pyramid-like schemes that promise unusually high returns.
- Have a history of frequent downtimes, security flaws, and poor developer experience.