Categories: Ethereum

What 30 Million Ethereum Transactions Reveal about the State of DApp Development

Click here to view original web page at www.ccn.com
Advertisement

New data from cryptocurrency prime dealer SFOX has painted a somewhat bleak picture of the current state of dApp development on the Ethereum network.

According to the data which was obtained from an analysis of more than 30 million Ethereum transactions, the top 10 smart contracts on the network are dominated by ICO and exchange activity, with a solitary spot for the popular CryptoKitties dApp.

The data shows that contrary to the promise of Ethereum as a simple and powerful engine for powering smart contracts that dApp developers can use for any purpose, the cost and scaling issues still present a significant challenge to the actualisation of that vision.

Ethereum’s Smart Contract Promise versus Reality

At the height of Ethereum’s bull run several months ago, ETH reached a high of $1,374, a figure that was driven largely by speculative pressure, but also by hopes sparked by the promise Ethereum offered as a smart contract and decentralised global computing platform. To investors, the core value of Ethereum was the utility presented by its smart contract capabilities, which not only created a new framework for executing trades and transactions, but also gave developers the opportunity to create decentralised applications that would essentially disrupt many existing centralised business models.

The new data from SFOX, however, paints an altogether different picture of how things have turned out in reality. Using a Jupyter Notebook to query Google’s public Ethereum dataset hosted on BigQuery, SFOX has revealed that of the top 10 Ethereum smart contract addresses by transaction volume, only one is held by a dApp.

Nine of the 10 addresses featured are dedicated to centralised exchange activity, decentralised exchange activity and ERC20 ICO token sales. The only dApp smart contract on the list is the popular CryptoKitties dApp which creates non-fungible tokens running on Ethereum’s ERC-721 standard. In other words, by far the vast majority of Ethereum smart contract activity is still dedicated to trading ether and Ethereum-based tokens. dApps have simply not taken off in the way that investors hoped they would, and this is for a number of reasons.

In August, CCN reported that Ethereum and EOS had only eight dApps with more than 300 active users between them. This factors cited for this lack of activity were principally gas costs on the Ethereum network and scalability problems. Ethereum, in particular, is notorious for experiencing high gas fees during times of network congestion that effectively cripple dApp operations.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.

According to the data which […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin’s Bulls Now Have a Target of $13.2K, Monthly Chart Suggests

View Bitcoin charted an "inside bar" pattern last month, making $13,200 the level to beat for the bulls. A convincing… Read More

6 hours ago

Japan to Solarize Its Burgeoning Digital Economy, Expert Take

Society is now witnessing the implementation of digital currencies, artificial intelligence (AI) and blockchain technology worldwide. These new digital technologies… Read More

6 hours ago

Mass Media’s Phony Freakout Over Bernie’s WaPo Criticism Is Backfiring

Authored by Caitlin Johnstone, After days of ridiculous, hysterical garment rending by mass media talking heads in response to Senator… Read More

12 hours ago

Quadriga CX Dukes It Out with “Failing” Auditing Firms

Quadriga CX , the crypto exchange in Canada that lost all access to customers’ funds when its founder passed away… Read More

12 hours ago

The Bearish Trends That Continue to Strike Bitcoin

At press time, bitcoin – the granddaddy of all crypto – is once again down for the count. Bitcoin Is,… Read More

12 hours ago

Will Growing Interest from China Propel Bitcoin’s Price Higher?

Bitcoin (BTC) has incurred a significant amount of volatility as of late which was perpetuated yesterday by news regarding the… Read More

12 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More