Adoption of Ethereum Information on Network Effect dApp, not users


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Martin Köppelmann, creator of the decentralized market Gnosis, said that the adoption of Ethereum should be measured by the network effect of decentralized applications (dApps), not by the number of users on the blockchain network [19659003] interconnected ecosystem of dApps

As a decentralized computing platform, the Ethereum blockchain network allows dApps and users to process data in a peer-to-peer and distributed manner. Ethereum users are not required to trust any intermediary on the network to initiate transactions or perform operations with dApps.

Köppelmann, who created an important decentralized market that competed against Augur, said that the adoption of Ethereum should be measured by the network effect of dApps and the ability of dApps to use smart other applications on Ethereum to process information.

"The best success metric for Ethereum is not the number of implemented DAPPs or the number of transactions DAPP they have in. It covers the number of DAPPs created and used that use smart contracts from other dApps," he explained .

For example, the decentralized exchange protocol 0x is a basic level that supports decentralized exchanges and the relays initiated on the blockchain. The Ethereum-based protocol 0x is exploited by a wide range of digital asset trading platforms such as Radar Relay, Paradex, Melonport, Maker, imToken, Aragon and Augur, which use the 0x protocol to allow users to exchange digital resources in [19659004] Coinbase co-founder and former Goldman Sachs merchant Fred Ehrsam said the protocols that allow dApps to share smart contracts and exploit the capabilities of other platforms on Ethereum enable the creation of an ecosystem where users can benefit from the compatibility of dApp on a wide network.

For example, because protocol 0x allows decentralized exchanges to operate on its base level, exchanges can potentially share a pool of liquidity that allows users of various decentralized exchanges to exchange digital resources in an environment

Köppelmann said:

"Few examples from the context of Gnosis: DutchX uses the price tag of MakerDAO, the token register 0x and will itself be controlled by a DAO Daostack, Melonport uses Oasisdex … but they are coming many others. "

If the basic levels like 0x and dApp like OasisDEX and MakerDAO that offer specific functionalities useful for dApp in other categories continue to see an improvement of their network effect, a decentralized system will form a network of dApp that will allow many applications and platforms on Ethereum to benefit from mutual innovative solutions.

In essence, Köppelmann said that the increase in the network effect and the interconnection of dApps will be the main contribution to the mainstream long-term adoption and growth of Ethereum.

How About Users?

The number of users of dApps is an important metric, but it is a number that will naturally increase as a network effect of dApps, scalability of Ethereum and user interface of dApp continues to demonstrate exponential growth and improvement.

If you use dApps to create bets on platforms like Gnosis and Augur, and using the mutation power of decentralized cloud networks like Storj, it becomes easy to use centralized alternatives, so the number of active users on Ethereum will inevitably increase.

Image highlighted by Shutterstock.

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