What are the top ten DApps on Ethereum?

Ethereum is a blockchain network with a market value second only to Bitcoin. In fact, there are many blockchain applications with different functions on Ethereum, called DApps (Decentralized Applications). These multi-functional DApps bring Ethereum to life. Today let’s take a look at the main Ethereum DApps and what functions they provide.

Ethereum: The Largest Second Generation Blockchain Platform

Ethereum is a decentralized open source blockchain with smart contract capabilities. Ether is the token of the platform. Ethereum was conceived in 2013 by Russian programmer Vitalik Buterin. Other founders of Ethereum include Gavin Wood, Charles Hoskinson, Anthony Di Iorio and Joseph Lubin.

In 2014, the development of Ethereum started and crowdfunded, and it went live on July 30, 2015. The platform allows anyone to deploy permanent and immutable decentralized applications on it that users can interact with. Decentralized financial applications provide a wide range of financial services without the need for typical financial intermediaries such as exchanges or banks. Ethereum also allows for the creation and exchange of NFTs. On October 27, 2021, Ethereum began implementing a series of upgrades, including a transition to proof-of-stake, aimed at increasing transaction throughput.

A relatively important technical contribution of Ethereum is smart contracts. Smart contracts are programs stored on the blockchain that assist and verify the negotiation and execution of contracts. The well-known magazine “The Economist” believes that smart contracts can allow the databases of many organizations to interact at low cost and allow users to write sophisticated contracts. Because the content of a smart contract is public, a smart contract can prove that its claimed function is true. On the other hand, the public nature of the contract also means that if there is a loophole in the contract, anyone can see it immediately.

In addition to smart contracts, Ethereum can be used to create decentralized programs. Examples include Opensea (a well-known platform for trading NFTs), Uniswap (a decentralized exchange), Metamask (a blockchain wallet), and more. In fact, there are many functions and software on Ethereum, which may be one of the reasons why Ethereum is the largest second-generation blockchain platform.

What are the top ten DApps on Ethereum?

Top 10 DApps by Ethereum usage

Source: DappRadar website

DApps are applications that can run autonomously, usually through the use of smart contracts, on a decentralized computing blockchain system. Like traditional apps, DApps provide some functionality or utility to their users. However, unlike traditional applications, DApps operate without human intervention and do not belong to any one entity, instead DApps distribute tokens that represent ownership. Without any one entity controlling the system, applications become decentralized.

The trustless and transparent nature of DApps has led to greater growth in leveraging these capabilities in the decentralized finance (DeFi) space. DApps can be divided into multiple categories according to their functions and nature: exchanges, games, finance, gambling, development, storage, wallets, governance, property, identity, media, social, security, energy, insurance and health.

Next, I will introduce the above representative DApps.

NFT trading leader OpenSea

OpenSea is an online marketplace for NFTs and the most used DApp on Ethereum. Opensea was founded by Devin Finzer and Alex Atallah on December 20, 2017 in New York. Users can generate NFTs for free on OpenSea and offer them to direct buyers or auctions. OpenSea is primarily based on the Ethereum ERC-721 standard and Polygon (a layer 2 scaling solution for Ethereum).

OpenSea went through Y Combinator’s seed round in 2018. In November 2019, OpenSea raised $2.1 million in venture capital (primarily from Animoca Brands). In March 2021, OpenSea raised another $23 million in venture capital (primarily from A16z Capital). In July 2021, OpenSea announced another $100 million funding round.

OpenSea had $95 million in revenue in February 2021, $147 million in March, and $2.75 billion in September. In September 2021, OpenSea released its own mobile apps for Android and iOS. In January 2022, OpenSea raised a $300 million funding round (led by Paradigm and Coatue Management) at a valuation of $13.3 billion.

OpenSea co-founder and CEO Devin Finzer said the newly raised funds will be used to improve customer support and security, invest in the wider NFT and web3 community, as well as recruiting and product development. OpenSea is committed to expanding the entire NFT ecosystem. OpenSea will launch a grants program with an opportunity to directly support the developers, builders and creators shaping the future of NFTs. OpenSea’s goal is to facilitate the scale and growth of the wider NFT ecosystem, including raising the profile of emerging creators and investing in the people who shape the NFT space for the better.

Uniswap

Uniswap is a decentralized Crypto exchange. Uniswap is also the name of the company that originally built the Uniswap web platform. Uniswap has 3 versions so far. Versions 2 and 3 are the second and third most popular DApps on the Ethereum network. The Uniswap network platform facilitates automated trading between Crypto tokens on the Ethereum blockchain through the use of smart contracts, in stark contrast to Crypto exchanges run by centralized companies.

Uniswap was created on November 2, 2018 by Hayden Adams, a former mechanical engineer at Siemens. Uniswap has received investment from venture capital firms including Andreessen Horowitz, Paradigm Venture Capital, Union Square Ventures LLC and ParaFi. According to data from Coinmarketcap, in February 2022, the average daily trading volume on Uniswap was $2 billion.

The first version (V1) of the Uniswap platform was released in November 2018 and introduced the concept of AMM (Automated Market Maker). Version 2 launches in May 2020, and Version 3 launches in May 2021.

Compared to centralized exchanges, Uniswap uses liquidity pools instead of market makers, aiming to create a more efficient market. Liquidity providers provide liquidity to exchanges by adding a pair of tokens to a smart contract that can be bought and sold by other users. In return, the liquidity provider will receive a percentage of the trading fees earned by that trading pair. For each transaction, a certain number of tokens are removed from the pool in exchange for the number of other tokens, thereby changing the price. There are no fees for listing tokens, access to a large number of Ethereum tokens is allowed, and users do not need to register. As open source software, Uniswap’s code can also be forked to create new exchanges.

Metamask

MetaMask is a software Crypto wallet based on the Ethereum blockchain, which is the fourth most used DApp on Ethereum. It allows users to access their Ethereum wallet through a browser extension or mobile app. MetaMask was developed in 2016 by ConsenSys Software Inc., a blockchain software company focused on Ethereum-based tools and infrastructure.

MetaMask allows users to store and manage account keys, broadcast transactions, send and receive Ethereum-based Crypto and tokens, and securely connect to decentralized applications through a compatible web browser or the mobile application’s built-in browser.

The app includes an integrated service for exchanging Ethereum tokens by aggregating multiple decentralized exchanges (DEXs) to find the best exchange rate. This feature is called MetaMask Swaps and charges a service fee of 0.875% of the transaction amount. As of November 2021, MetaMask’s browser extension has over 21 million monthly active users.

Before 2019, MetaMask was only available as a desktop browser extension for Google Chrome and Firefox browsers. Beginning in 2019, MetaMask began releasing versions of the mobile app for closed beta testing, followed by an official public release for iOS and Android in September 2020. In October 2020, the desktop extension added a built-in DEX aggregation service, MetaMask Swaps. The product launches on mobile devices in March 2021.

Polygon POS

Today everyone can create their own blockchain network. Larger and larger blockchain networks such as Ethereum have some problems such as network congestion (too many people use it) and high usage rates (too many people use it and thus drive up the price). Many blockchain networks today focus on faster transaction speeds and lower transaction rates. Some people wonder if it is possible to combine or expand two blockchains or multiple blockchain networks, which results in a blockchain bridge. A blockchain bridge is software used to connect one blockchain to another. This is a service that connects two networks at the same time.

Polygon is Ethereum’s blockchain bridge, a protocol and framework for building and connecting Ethereum-compatible blockchain networks. The main purpose of Polygon is to expand the infrastructure development platform of the Ethereum network. Today, Polygon’s scaling solutions are widely adopted by over 400 Dapps, over 350 million transactions, and over 1.5 million users.

1inch Network

1inch Network is a DEX network that aims to find the most profitable DEX exchanges for liquidity providers through a handful of decentralized exchanges, and is the 6th most popular DApp on the Ethereum network. Users can query all the data of DEX exchanges in the Ethereum ecosystem, Binance Smart Chain, and Polygon networks through 1inch Network.

1inch Network is the brainchild of Russian developers Sergej Kunz and Anton Bukov. As avid DeFi enthusiasts, Kunz and Bukov started experimenting with arbitrage bots during the ETHNewYork hackathon in 2019, creating the first 1inch Network related concept product.

The 1inch Network platform raised about $15 million in funding and is now managed by the 1inch Network Foundation, a non-profit organization. 1inch Network’s protocol finds the best market price by splitting orders across multiple DEXs. The protocol uses bots and other algorithms to boost investors’ DeFi profits. One of 1inch Network’s greatest strengths is that it provides liquidity on multiple markets across three blockchain networks.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-are-the-top-ten-dapps-on-ethereum/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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