With over 2,400 Decentralized Applications in existence, Dapps are all the rage now. From games, gambling, finance, property to storage, identity, energy and media, Dapps have covered a wide range of categories.
The Dapp ecosystem is growing progressively as evident from the fact that it has close to 65k daily active users and registered about 1.6 million transactions in the past 24-hours. Experiencing a major growth, 2018 saw a constant rise in the number of Dapps as per the statistics provided by stateofthedapps.com.
When it comes to platforms, Ethereum (ETH), the 2nd largest cryptocurrency with a market cap of $15 billion along with EOS and POA are the platforms the majority of Dapps are built on. Tron (TRX) is another platform in the race which is aggressively targeting Dapps.
Though the Dapp users in itself are growing, when it comes to big platforms that have billion dollar market capitalization like Ethereum and EOS, the numbers in thousands have yet to do any justice. This brings the point home that Dapps are still a long way from mainstream adoption.
However, one class of Dapps that are gaining increasing attention and something to be excited about is decentralized exchanges.
DEX to Drive Crypto Adoption & Dapp Development
Decentralized exchanges (DEX) are built on a blockchain that allows for the peer-to-peer trading of tokens that are native of that blockchain. As for how it actually works, the users have to just connect their crypto wallets to the DEX in order to interact with its smart contract.
This process eliminates the third party by automatically matching, verifying, and executing the trades. Ethereum, EOS, and NEO blockchain have been popular platforms to build DEXs.
A decentralization exchange is a dapp that facilitates payments and liquidity while potentially having more functions. For instance, in a gaming Dapp, DEX acts as a swap service by allowing its participants to pay with not just native token but any of the supported ERC20 token. This creates a seamless experience for users while allowing the adoption of overall Dapp ecosystem.
Furthermore, as a liquidity provider, DEX allows the fund managers to swap different assets with just a click which offers the convenience to make instant trades on their investments.
The fact that decentralized exchanges allow users to have full control over their funds and allowing them to use the funds in a peer to peer manner by leveraging non-custodial wallets, DEXs will be integral to the growth of the crypto market. Moreover, with big names like Binance, the biggest crypto exchange planning its own DEX, decentralized exchanges just can’t be ignored.
DEXs will drive the adoption of cryptocurrencies, there is no doubt about that but due to being in its initial phase, having being used by a niche audience that is, it would take time.
But as we move forward, the technology in use here, blockchain has a significant role to play in the tech market.