Ethereum Decentralized App Network Effect Helps Adoption More Than Users Says Gnosis Creator

Ethereum Adoption Is About Decentralized App Network Effect, Not Users, Gnosis Creator Affirms

The creator of the decentralized marketplace Gnosis, Martin Köppelmann, has recently affirmed that the adoption of the Ethereum blockchain should not be measured by the number of users on the network but by the effect of the decentralized applications on it.

Köpplemann has created a major decentralized marketplace that is currently competing against Augur, the decentralized betting platform. According to him, the Ethereum network should be measured by the effect and ability of the dapps to use smart contracts and other apps, not necessarily by user numbers only.

According to him, if you have more dapps created and you are using more smart contracts, that means a lot more than having a lot of users at a certain time. The number, he believes, will increase naturally if the platform is good and it actually has what it takes to attract the users.

The Gnosis creator cites the example of the 0x protocol, which is a decentralized exchange that was created on top of the Ethereum blockchain. There are many third party platforms using this protocol, he says, so it is useful independently on the number of users.

The Coinbase creator and founder and former Goldman Sachs trader Fred Ehrsam has also affirmed that protocols that enable dapps to share smart contracts and leverage other functionalities on the platform are very useful. Because of it, the users can benefit from the compatibility of dapps across a wide network.

This process of creating a strong structure in which one dapp supports the other is vital for the backbone of any decentralized network. It can allow the dapps to share things like liquidity pools, base layers and assets.

According to Köpplemann, some examples can be taken from Gnosis. For instance, DutchX uses MakerDAO price oracle and the 0x token is controlled by the Daostack DAO. Dapps start to depend on each other after some time and this creates a strong and sharing community.

This way, essentially by sharing, the networks are able to come up with interesting answers for their problems and create a strong structure that can be shared and will attract more and more developers over time, as they will have a great way of creating dapps with the help of other platforms.

What About The Users?

It can be summarized that the creator of Gnosis believes that this increase in network effect and the interconnectedness of the dapps will contribute to the mainstream adoption in time. According to him, if the structure is good, then surely people will start to appear with time.

By increasing the potential and the tools of the Ethereum network, Köppelmann defends, the users will naturally appear on the platform and this will to exponential growth in the future.

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B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

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