Crypto Research Exposes EOS And Ethereum For Having 8 Dapps With 300+ Active Users Combined
Cryptocurrency researcher Kevin Rooke stated that both Ethereum and Eos have eight dApps and over 300 active users, combined. Despite these figures, there is a major difference between the market valuations of both – Ethereum is at $28 billion, while EOS is at $4.6 billion.
According to Coinbase co-founder and former Goldman Sachs trader Fred Ehrsam, Ethereum would need to scale by 100-fold for it to be able to handle large-scale dApps on its network that features millions of active users. Ethereum’s co-founder, Vitalik Buterin, pointed out that second-layer scaling solutions such as Plasma and Sharding may be able to enhance Ethereum network’s capacity by a million transactions per second.
Scaling is not the only issue affecting the networks though. Ox Protocol is able to facilitate peer-to-peer cryptocurrency trades by a hybrid on and off-chain mechanism and it is able to process a multitude of transactions on its network for decentralized digital asset exchanges. Another issue concerning low dApp activity is the user interface on most of the apps are new for many users.
A week ago, songer-songwriter Shooter Jennings discussed Ethereum-based Twitter Peepth on the Joe Rogan Podcast and struggled in the process. The lack of background concerning dApps can be a major issue, especially because it hinders growth.
On the bright side, Martin Koppelman, the creater of Gnosis, stated that there is a metric even more important than the active user base on dApps and it is the network effect and interconnectedness of the apps.
According to Koppelman,
“The numbers we care about is the usage of decentralized applications. And as a next step, the number to look out for is DAPPs that seamlessly interact with each other and draw a benefit from being on the same platform. As a side effect, ultimately the price of ETH will be a function of the demand for the use of application in this reliable, open, and interconnected environment.”
It is expected that as the open-source developer community improves, so will scalability. Developers may soon find a way to make dApps easy to utilize, providing incentives to switch from centralized alternatives to dApps.