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The State of DApp Development

New data from #cryptocurrency prime dealer SFOX has painted a #somewhat bleak #picture of the current state of dApp #development on the #Ethereum network.

According to the #data which was obtained from an #analysis of more than 30 million Ethereum #transactions, the top 10 smart #contracts on the network are #dominated by ICO and #exchange activity, with a solitary spot for the popular #CryptoKitties dApp.

The #data shows that contrary to the promise of #Ethereum as a simple and powerful engine for powering smart #contracts that dApp developers can use for any #purpose, the cost and scaling issues still present a significant #challenge to the #actualisation of that vision.

Ethereum’s Smart #Contract Promise versus #Reality

At the height of #Ethereum’s bull run several #months ago,# ETH reached a high of $1,374, a figure that was driven largely by #speculative pressure, but also by hopes sparked by the promise #Ethereum offered as a smart #contract and decentralised global computing #platform. To investors, the core value of Ethereum was the utility presented by its smart #contract #capabilities, which not only created a new #framework for executing trades and #transactions, but also gave #developers the opportunity to create #decentralised applications that would essentially #disrupt many existing centralised business# models.

The new data from #SFOX, however, paints an #altogether different picture of how things have turned out in #reality. Using a Jupyter Notebook to query #Google’s public Ethereum #dataset hosted on #BigQuery, #SFOX has revealed that of the top 10 #Ethereum smart contract addresses by transaction volume, only one is held by a dApp.

Nine of the 10 #addresses featured are dedicated to centralised #exchange activity, decentralised exchange activity and ERC20 ICO #token sales. The only dApp smart contract on the list is the popular #CryptoKitties dApp which creates non-fungible#tokens running on Ethereum’s #ERC-721 standard. In other words, by far the vast majority of #Ethereum smart contract activity is still dedicated to trading ether and# Ethereum-based tokens. #dApps have simply not taken off in the way that #investors hoped they would, and this is for a #number of reasons.

In August, it has been reported that Ethereum and EOS had only eight #dApps with more than 300 active users between them. This #factors cited for this lack of activity were principally gas costs on the #Ethereum network and #scalability problems. Ethereum, in particular, is notorious for experiencing high #gas fees during times of #network congestion that effectively cripple dApp o#perations.

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