Decentralized Applications (DApps) provide solutions in various fields including finance, gaming, commerce and others. The Ethereum blockchain is currently the best blockchain for building a DApp.
Here’s a look at some of the best DApps based on Ethereum.
Uniswap is an open-source decentralized exchange (DEX) for trading and providing liquidity for ERC20 tokens on Ethereum. It serves as an automated market maker (AMM) for exchanging ERC20 tokens. This is done via a collection of smart contracts that determine the formation of liquidity pools and the exchange of assets.
Uniswap is one of the world’s most popular and largest crypto exchanges. The platform has boasted over $1.2 trillion in trading volume since its inception.
Uniswap’s fast-growing ecosystem includes developers, traders and liquidity providers working together to build decentralized finance (DeFi) apps. Developers benefit from access to open-source code, software development kits (SDKs), and advanced protocol documentation for rapid DApp development.
The Uniswap Governance Token (UNI) offers holders the ability to participate in determining upgrades, voting on new governance proposals and defining the future of the Uniswap protocol.
Non-fungible tokens (NFTs) have become almost a rite of passage for most crypto holders, with ownership of an NFT beginning with the purchase or minting of one. This is where OpenSea comes in, one of the largest decentralized NFT marketplaces.
OpenSea has over 2 million NFT collections, 80 million NFTs and $20 billion in trading volume. It houses some of the most popular NFT collections including Crypto Punks, Bored Ape Yacht Club and more.
Users can easily buy, sell and mint NFTs on OpenSea by connecting their web3 crypto wallet. The platform also supports multiple blockchains and the largest digital collectibles. OpenSea has more than 1.5 million active users and supports up to 150 different cryptocurrencies.
MakerDAO is a decentralized lending platform that allows users to lend and borrow different types of cryptocurrencies. The MakerDAO protocol uses smart contracts to manage credits and loans. Its two native currencies — DAI, a stablecoin pegged to the US dollar, and Maker (MKR) — are used to regulate credit values.
The platform allows users to lock in cryptocurrencies as collateral and receive DAI tokens in return. It supports Ether (ETH), Basic Attention Token (BAT), Compound Token, USD Coin (USDC) and many more cryptocurrencies. With the anonymous nature of blockchain technology, MakerDAO uses liquidation to ensure loan payment and recovery.
Whenever a loan’s collateral drops below a certain threshold based on when the user borrowed DAI, the loan is immediately liquidated. The cryptocurrency used as collateral is immediately sold to repay the borrowed DAI plus fees and associated penalties. DAI, ETH and MKR work as a tripartite system of checks and balances to keep the system stable and protect users from excessive borrowing.
Maker (MKR) is the governance token of the Maker protocol and allows holders to propose or vote on new developments for the protocol. MakerDAO currently has over 2.3 million ETH locked in its log, which is roughly 2% of the total ETH supply.
MetaMask is an extension that allows DApps to be accessed through a browser. MetaMask bills itself as a “crypto wallet and gateway to blockchain apps.” It is one of the most widely used crypto wallets and serves as an easy entry point into blockchain apps and assets.
Users can create and manage their own wallets. When a DApp wants to make a transaction, the user is given a secure interface to review the transaction before approving or rejecting it. Setting up a MetaMask wallet is as easy as adding it as a browser extension to compatible browsers like Chrome, Firefox, Brave, and Edge desktop browsers. It can also be downloaded as a free mobile app for iOS or Android.
MetaMask prioritizes security, and each wallet comes with a unique twelve-word recovery phrase that protects against hackers and can also be used to migrate the wallet. MetaMask advises users to write down their recovery phrase and keep it in a safe place because access to the recovery phrase grants access to the wallet.
MetaMask is mainly used on the Ethereum blockchain but also supports other blockchains like BNB Chain, Polygon, Avalanche and many more.
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Gaming DApps with embedded NFTs and crypto collectibles have exploded in popularity. Axie Infinity, an NFT-based game known for its virtual in-play economy, is one of the most popular gaming DApps. The main draw for Axie Infinity is its play-to-earn model, which sees players collect and trade digital pets known as axies.
Axie’s virtual economy is powered by native tokens Smooth Love Potion (SLP) and Axie Infinity Token (AXS). Both tokens can be earned through various activities within the game. Axie Infinity (AXS) is also tradable on major exchanges, which makes it unique.
As of March 2022, Axie Infinity had recorded a combined NFT transaction volume of over $4 billion, showing the incredible demand the game had generated. Axie runs on Ethereum using Ronin, a sidechain that minimizes fees and transaction delays.
Compound is an interest protocol where users can borrow, lend and earn interest on fixed cryptocurrencies. The platform allows deposits in various cryptocurrencies, such as Ether (ETH), USD Coin (USDC) and DAI to name a few. Users can access Compound’s features by connecting their wallets. Supported wallets include MetaMask, Ledger, and Wallet Connect.
Compound matches lenders to borrowers using an automated matching protocol. Funds are deposited into the liquidity pool, which collects the interest rate from the borrower and rewards the lender.
COMP is an ERC20 token that serves as Compound’s native currency and governance token. As a result, COMP holders can participate in governance activities that will determine the future development of Compound. Compound’s protocol can also be integrated with other compatible DeFi platforms.
Wormhole offers crypto holders the best of blockchain worlds. It acts as a bridge between multiple blockchains for the efficient movement of digital assets seamlessly across blockchains. The Wormhole Portal offers users of blockchains like Ethereum, BNB Chain, Solana, Polygon, Oasis, etc. a secure and transparent platform to bridge their crypto assets.
Wormhole solves the difficulty of moving tokens across blockchains and interoperability between chains. In addition, Wormhole supports a number of DApps built on top of it and cross-bridging for NFTs.
Ethereum has given DApps a solid platform for growth
The Ethereum ecosystem is strong and its possibilities seem limitless. Some great DApps have already been created here, and many more are likely to come. Overall, Ethereum has had great success in developing a solid platform for DApps to achieve their goals.
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