Decentralized Applications (DApps) offer solutions in various fields including finance, gaming, commerce and others. The Ethereum blockchain currently leads the pack of the best blockchains for building a DApp.
Let’s take a look at the best DApps built on Ethereum.
Uniswap is an open source decentralized exchange (DEX) to provide trading and liquidity for ERC20 tokens on Ethereum. It serves as an automated market maker (AMM) for trading ERC20 tokens. This is done through a set of smart contracts that define the creation of liquidity pools and the exchange of assets.
Uniswap is one of the most popular and largest cryptocurrency exchanges in the world. The platform can boast of a trading volume of more than 1.2 trillion dollars since its inception.
Uniswap’s growing ecosystem includes developers, traders and liquidity providers working together to create decentralized finance (DeFi) applications. Developers get access to open source code, software development kits (SDKs), and advanced protocol documentation for rapid development of DApps.
The Uniswap (UNI) governance token allows holders to participate in defining improvements, vote on new governance proposals, and shape the future of the Uniswap protocol.
2. Open sea
Non-fungile tokens (NFTs) have become almost a rite of passage for most cryptocurrency holders, starting with owning, purchasing, or minting an NFT. This is where OpenSea, one of the largest decentralized NFT markets, comes in.
OpenSea has a collection of over 2 million NFTs, a collection of 80 million NFTs and a trading volume of USD 20 billion. It hosts the most popular NFT collections including Crypto Punks, Bored Ape Yacht Club and more.
Users can easily buy, sell and mine NFTs on OpenSea by connecting the web3 crypto wallet. The platform also supports multiple blockchains and the largest digital collections. OpenSea has over 1.5 million active users and supports up to 150 different cryptocurrencies.
MakerDAO is a decentralized lending platform where users can lend and borrow different types of cryptocurrencies. The MakerDAO protocol uses smart contracts to manage borrowing and lending. Its two local currencies – DAI, a stablecoin pegged to the US dollar, and Maker (MKR) – are used to regulate the value of loans.
The platform allows users to block cryptocurrencies as collateral and receive DAI tokens in return. It supports Ether (ETH), Basic Attention Token (BAT), Compound token, USD Coin (USDC) and many other cryptocurrencies. With the anonymous nature of blockchain technology, MakerDAO uses cancellation to ensure credit repayment and collection.
Based on when the user withdraws DAI, if the loan collateral falls below a certain threshold, the loan is canceled immediately. The pledged cryptocurrency is immediately sold to repay the borrowed DAI, plus associated fees and penalties. DAI, ETH, and MKR act as a three-way check and balance system to maintain system stability and prevent users from over-borrowing.
Maker (MKR) is the management token of the Maker protocol, which allows owners to propose or vote on new developments for the protocol. MakerDAO currently has over 2.3 million ETH locked in its protocol, which is about 2% of the total ETH supply.
MetaMask is an extension that can be used to access DApps through a browser. MetaMask bills itself as a “gateway to cryptocurrency wallet and blockchain applications.” It is one of the most widely used cryptocurrency wallets and serves as an easy access to blockchain applications and assets.
Users can create and manage their own wallets. When a DApp wants to perform a transaction, the user has a secure interface to review the transaction before approving or rejecting it. Installing the MetaMask wallet is as easy as adding it as a browser extension on supported browsers such as Chrome, Firefox, Brave and Edge desktop browsers. It can also be downloaded as a free mobile app on iOS or Android.
MetaMask prioritizes security and each wallet comes with a unique twelve-word recovery phrase that is a guide against hacking and can also be used to transfer the wallet. MetaMask recommends users to write down the recovery passphrase and store it in a safe place, as access to the recovery passphrase gives access to the wallet.
MetaMask is primarily used on the Ethereum blockchain, but also supports other blockchains such as BNB Chain, Polygon, Avalanche, and more.
5. Axie Infinity
Gaming DApps that combine collectible NFTs and cryptocurrencies have exploded in popularity. Axie Infinity, an NFT-based game known for its in-game virtual economy, is one of the most popular gaming DApps. Axie Infinity’s main attraction is its “play-to-win” model, which allows players to collect and trade digital pets called Axies.
Axie’s virtual economy is powered by native tokens, Smooth Love Potion (SLP) and Axie Infinity Token (AXS). Both tokens can be earned by performing various in-game activities. Axie Infinity (AXS) can also be traded on major exchanges, which makes it unique.
As of March 2022, Axie Infinity recorded a total NFT transaction volume of more than $4 billion, indicating the incredible demand generated by the games.
Compound is an interest rate protocol where users can borrow, lend and earn interest in stable cryptocurrencies. The platform allows depositing in various cryptocurrencies such as Ether (ETH), USD Coin (USDC) and DAI. Users can access Advanced features by linking their wallets. Supported wallets are MetaMask, Ledger and Wallet Connect.
Using an automated matching protocol, Compound connects lenders and borrowers. Funds are placed in a liquidity pool that collects interest from the borrower and rewards the lender.
COMP is an ERC20 token that serves as Compound’s native currency and governance token. Therefore, COMP owners can participate in management activities that determine the future development of the Compound. Compound’s protocol can also be integrated with other compatible DeFi platforms.
Wormhole offers cryptocurrency holders the best of the blockchain worlds. It acts as a bridge between multiple blockchains for efficient movement of digital assets across blockchains seamlessly. Wormhole portal Ethereum, BNB Chain, Solana, Polygon, Oasis, etc. provides users of blockchains with a secure and transparent platform to bridge crypto-assets.
Wormhole solves the difficulty of transferring tokens across blockchains and cross-chain interactions. In addition, Wormhole supports many digital applications built on this platform, as well as bridges for NFTs.
Ethereum has given DApps a solid platform for growth
The Ethereum ecosystem is strong and its possibilities seem endless. It has already enabled some great DApps to be built, and there are likely to be many more to come. Overall, Ethereum has succeeded in developing a solid platform for DApps to achieve their goals.