The discovery and development of novel drugs for the multitude of targets originating from functional genomic research is a challenging task. While antibodies can nowadays be raised against virtually any given target using phage-display methodologies, a similar "selection/amplification" approach for the facile discovery of low-molecular weight compounds capable of specific binding to protein targets of choice has so far been lacking. The development of DNA-encoded chemical libraries, combined with suitable selection and high-throughput sequencing strategies, holds promises to fill this gap. Here, we review the latest developments in the field of DNA-encoded chemical libraries, commenting on the challenges and opportunities for the different experimental strategies in this rapidly evolving research area, which may gain importance for the future drug discovery process.