Decentralized applications (DApps) offer solutions in various fields including finance, gaming, commerce and other industries. The Ethereum blockchain currently leads the pack of best blockchains for building a DApp.
Here’s a look at some of the best DApps built on Ethereum.
1. Uniswap
Uniswap is an open source decentralized exchange (DEX) for trading and providing liquidity for ERC20 tokens on Ethereum. Acts as an automated market maker (AMM) for trading ERC20 tokens. This happens through a collection of smart contracts that determine 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 a trading volume of over $1.2 trillion since its inception.
Uniswap’s growing ecosystem includes developers, traders and liquidity providers working together to build decentralized finance (DeFi) apps. Developers get access to open source code, software development kits (SDKs), and advanced protocol documentation for rapid DApp development.
The Uniswap (UNI) Governance Token allows its holders to participate in determining upgrades, vote on new governance proposals, and shape the future of the Uniswap protocol.
2. Open Sea
Non-fungible tokens (NFTs) have become almost a rite of passage for most cryptocurrency holders, with owning an NFT starting with buying or minting a token. This is where OpenSea comes in, one of the largest decentralized NFT marketplaces.
OpenSea has over 2 million NFT collections, 80 million NFTs and $20 billion in trading volume. It houses some of the most popular NFT collections including Crypto Punks, Bored Ape Yacht Club and many more.
Users can easily buy, sell and mine NFTs on OpenSea by connecting their web3 crypto wallet. The platform also supports multiple blockchains and the largest digital collectibles. OpenSea has over 1.5 million active users and supports up to 150 different cryptocurrencies.
3.MakerDAO
MakerDAO is a decentralized lending platform where users can lend and borrow different types of cryptocurrencies. The MakerDAO protocol uses smart contracts to manage loans and borrowing. Its two native currencies – DAI, a stablecoin pegged to the US dollar, and Maker (MKR) – are used to settle the value of loans.
The platform allows users to lock up 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. Given the anonymous nature of blockchain technology, MakerDAO uses settlement to secure payment and loan collection.
Whenever a loan’s collateral falls below a certain threshold, based on when the user borrowed DAI, the loan is immediately liquidated. The pledged cryptocurrency is immediately sold to repay the borrowed DAI, plus associated fees and penalties. DAI, ETH, and MKR operate as a three-party system of checks and balances to maintain system stability and prevent users from excessive borrowing.
Maker (MKR) is the governance token of the Maker Protocol and allows holders to propose or vote on new developments for the protocol. MakerDAO currently has over 2.3 million ETH locked into its protocol, which is roughly 2% of the total ETH supply.
MetaMask is an extension that can be used to access DApps via a browser. MetaMask bills itself as “a cryptocurrency wallet and blockchain application gateway.” It is one of the most used cryptocurrency wallets and serves as an easy access to blockchain applications and resources.
Users can create and manage their own wallets. When a DApp wants to make a transaction, the user has a secure interface to review the transaction before approving or rejecting it. Setting up a 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 guides against hacking and can also be used to migrate the wallet. MetaMask recommends users write down their recovery phrase and keep it in a safe place, as accessing the recovery phrase grants access to the wallet.
MetaMask is mainly used on the Ethereum blockchain but also supports other blockchains such as BNB Chain, Polygon, Avalanche and many others.
5. Axie Infinite
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Gaming DApps that integrate collectible NFTs and cryptocurrencies have exploded in popularity. Axie Infinity, an NFT-based game known for its in-play virtual economy, is one of the most popular gaming DApps. The main attraction of Axie Infinity is its “play to earn” model that allows players to collect and trade digital pets called Axies.
Axie’s virtual economy is powered by its native tokens, Smooth Love Potion (SLP) and Axie Infinity Token (AXS). Both tokens can be earned by performing different in-game activities. Axie Infinity (AXS) is also tradable on major exchanges, which makes it unique.
As of March 2022, Axie Infinity had recorded a total NFT transaction volume of over $4 billion, demonstrating the incredible demand generated by gaming. Axie runs on Ethereum with the help of Ronin, a sidechain that minimizes fees and transaction times.
6. Compound
Compound is an interest rate protocol where users can borrow, lend and earn interest in fixed cryptocurrencies. The platform allows you to deposit in different cryptocurrencies, such as Ether (ETH), USD Coin (USDC) and DAI, just to name a few. Users can access Compound’s features by linking their wallets. Supported wallets are MetaMask, Ledger and Wallet Connect.
Using an automated matching protocol, Compound connects lenders and borrowers. The funds are deposited in the liquidity pool, which collects the interest rate from the borrower and rewards the lender.
COMP is an ERC20 token that serves as the native currency and governance token of Compound. Therefore, COMP holders can participate in the governance activities that determine the future development of Compound. Compound’s protocol can also be integrated with other compatible DeFi platforms.
7. Vortex
Wormhole offers cryptocurrency holders the best of the blockchain worlds. It acts as a bridge between multiple blockchains for the efficient movement of digital assets seamlessly across the blockchains. The Wormhole portal provides users of blockchains such as Ethereum, BNB Chain, Solana, Polygon, Oasis, etc., with a secure and transparent platform to bridge their crypto assets.
Wormhole solves the difficulty of moving tokens across blockchain and cross-chain interoperability. Additionally, Wormhole supports a variety of digital apps built on this platform, as well as cross-bridging for NFTs.
Ethereum has provided DApps with a solid platform for growth
The Ethereum ecosystem is strong and its possibilities seem limitless. It has already enabled the creation of some great DApps and there are likely to be many more to come. Overall, Ethereum has managed to develop a robust platform for DApps to achieve its goals.