Dify is a source-available LLM application platform that gathers AI workflows, RAG knowledge bases, agent capabilities, model management and observability into a single visual interface. It sits between "write code against an API" and "pure low-code tool": build the prototype in the UI, and use the API that every feature exposes to wire it into your own systems.
What It Does
- Workflow orchestration: chain questions, retrieval, model calls, branches and tools into a visual flow.
- Knowledge bases (RAG): upload PDFs, slide decks and other common formats and get text extraction, chunking, embedding and retrieval as the grounding for answers.
- Agents: let a model call tools to finish multi-step tasks; newer versions also offer autonomous agents that run commands, install software and manage files inside a sandbox.
- Tool ecosystem: connect tools from the Dify plugin marketplace, MCP servers or your own APIs.
- Prompt management: variables, conditions, versioning and side-by-side model tests a team can collaborate on.
- Model access: international providers, Chinese providers and locally deployed models all plug in.
- Monitoring: track how applications run, with integrations for observability platforms such as Langfuse, Opik and Arize Phoenix.
Why It Earns Its Own Entry
Most teams' first AI app is the same pile of chores: chunk documents, store vectors, assemble prompts, keep logs, give the business side something clickable. Dify standardizes that pile. What it saves is the two weeks of building scaffolding from scratch — not any capability of the model itself.
It doesn't abolish code: complex logic still ends up in custom nodes or external services, and visual orchestration shows its limits as soon as a flow gets complicated. Treat it as scaffolding for the first 80%, not a complete replacement.
Two Ways to Start
Cloud: sign up on the official site and start right away; the free Sandbox plan includes 200 GPT-4 calls, enough to learn the product.
Self-hosted: the project asks for at least 2 CPU cores and 4 GB of RAM. After cloning the repository, run:
cd dify/docker
cp .env.example .env
docker compose up -dThen open http://localhost/install in a browser to finish setup and create the administrator account. Next, add your model's API key under Settings → Model Provider, and you can create your first app.
Read the License
The community edition is not MIT licensed. It uses the Dify Open Source License, which adds conditions on top of Apache 2.0. The two main ones:
- Without written authorization, you may not use the Dify source code to operate a multi-tenant environment (one workspace counts as one tenant) — in other words, you can't simply turn it into a multi-tenant SaaS you sell to others.
- You may not remove or modify the logo or copyright information in the Dify console or application frontend.
Internal self-hosting inside a company is largely unaffected; if you plan to offer it as an external service or rebrand it, read the full license or contact the company first.
Deployment and Operations
The community edition self-hosts with Docker, keeping data on your own infrastructure; there are also cloud and enterprise offerings. For teams whose data can't leave the network, self-hosting is the most practical selling point — but the operational cost of Docker, a vector store and version upgrades is yours. Back up the data volumes and read the release notes before upgrading.
Using It in China
It deploys directly on servers inside China, and with a Chinese provider's API on the model side it runs entirely domestically. That is a big part of why it has spread faster among Chinese teams than comparable overseas products.
How It Compares
- If you mainly automate business processes across systems (forms, CRM, notifications) and AI is just one step: n8n.
- If you need full code-level control over every step: use a framework such as LangChain directly.
- If you only want a team chat interface for local models: Open WebUI is lighter.
