Ernst & Young (EY) Head of Innovation: Over 80% Ethereum Dapps Are Not Utilized Efficiently
Ernst & Young’s (EY) head of innovation has come out and said that about 83% of decentralized applications on the Ethereum network are unproductive.
Paul drives EY initiatives and investments in blockchain technology across consulting, audit and tax business lines. He has held a number of leadership positions in the areas of internet of things, supply chain and operations and business strategy, working with many client organizations. He led EY first blockchain strategy engagement, examining how digital services, payments and internet of things are coming together in new ecosystems, and building a strategy and technology road map for one of EY’s major clients.
This report was given by Paul at the Fintech Forum on May 31, an event hosted by the United States’ Securities & Exchange Commission (SEC).
Decentralization sounds exquisite, however, most of the DApps are trying to solve issues that are better equipped in a centralized application. However, they have been the highlight of the crypto ecosystem for many and promise a utopian future to a few. Not only do they utilize network features for popular currencies such as Ethereum and TRON, but they provide an avenue for coin usage beyond exchange speculation. Hey also give creators the flexibility of creating unique products.
Brody was right in calling these unproductive applications a “money chasing” attempt on the digital landscape, before diving into a broader criticism of the development process. Dapps, in their current standard, are not living up to a worthwhile valuation, leading Brody to say the industry is “not doing very well.”
According to the data cited by Brody: only fourteen percent (14%) of Ethereum based DApps are used at crypto exchanges, forty-forty percent (44%) used for gambling and thirteen percent (13%) for gaming. Brody explained that developers were missing the innovation provided through fractionalization, which could lead to what he called a “lasting legacy that is positive.”
These words by Brody should not be interpreted as him being against Ethereum. In fact it's quite the contrary case. Speaking at the Ethereal Summit 2019, he said:
“Corporations WILL come to use Ethereum mainnet”