Dynamic analysis involves executing a program and monitoring its behavior during execution, as opposed to static analysis, which examines the code without executing it. This can include observing how the program interacts with its environment, identifying memory usage, inspecting data flow, and evaluating software performance. Dynamic analysis is essential for identifying runtime errors, memory leaks, and other vulnerabilities that may not be apparent through static analysis alone. It is commonly employed in both traditional software development as well as in analyzing smart contracts and decentralized applications in the Web3 space.