Ethereum Dapps – The Best Dapps on the ETH Blockchain

Handy Tips / 14.05.2020

What Does Ethereum Do That Other Platforms Can’t?

Dapps, or decentralized applications, are a part of the whole Smart Contracts ecosystem. Running dapps on the general-purpose, multi-faceted Ethereum blockchain offers added security benefits. Since the transactions are distributed and encrypted across the Ethereum blockchain, there is no central place for a hacker to breach and gain access.

It is unanimously considered that Ethereum is perhaps the best platform for building dApps. Thanks to its very own language, Solidity, this enables developers to form smart contracts using the Ethereum Virtual Machine. Using the tools, developers have created Dapps on the Ethereum Blockchain, which range in applicability from prediction markets to resource planning to network-based games.

Applications built on Ethereum (dapps) can do things regular apps can’t:

  • Create new kinds of value and digital assets
  • Web apps that are unstoppable and non-censorable
  • Build decentralized organizations, property, or virtual worlds that are governed collectively

An Interesting Innovation

One of the most interesting innovations that Smart Contracts on the Ethereum Blockchain allows is interoperability among dapps. What that means is that one can build a dapp on Ethereum that takes input from a totally different dapp.

One such example of inter-application operability is the famous game on Ethereum called HyperDragons.

HyperDragons use Ethereum ERC721 non-fungible tokens to create unique virtual dragons that players can trade. Each virtual dragon has its fighting abilities, which are determined by three factors: the dragon’s skills, glory, and hit points. A player can send his or her dragon to participate in fighting competitions to prove its worth on the battlefield. The best part of the game is that it uses resources from a different game called CryptoKitties.

CryptoKitties is a collectible-type game where people can breed, trade, and collect virtual kittens that are cryptographically linked to the blockchain. In HyperDragon, one can use the kittens collected from CryptoKitties to feed the dragons. This novel idea sparked a chain reaction in the blockchain space as it allowed people to conceptualize innovative applications that borrow from other seemingly unrelated applications, something unprecedented in the centralized technology world.

The Best Dapps on the Ethereum Blockchain

The Dapps that follow, might not necessarily be the most used apps on Ethereum right now, but they certainly bring a lot of value to the Ethereum ecosystem.

Compound – DeFi Platform

In a traditional savings account, you put money into the bank and earn interest on that money. The problem is that regular bank customers are not able to use their deposited, interest-earning money in any other way once it’s in the bank. What if you could spend the money your savings earned while still saving? That’s the idea behind all of the DeFi – decentralized finance ecosystem.

One of the major players in the DeFi Market is Compound. On the surface, Compound resembles other decentralized lending protocols in that it uses crypto assets as collateral to borrow more crypto assets. Where Compound stands out is the tokenization of the assets locked in their system, through the use of cTokens.

Compound tokens or cTokens are simply ERC20 tokens representing a user’s funds deposited in Compound. By putting ETH or another ERC20 like USDC in the protocol, users get an equivalent amount of cTokens. For example, locking up USDC in the protocol generates cUSD–tokens which automatically earn interest for you. At any time, you can redeem your cUSDC for normal USDC plus interest paid in USDC.

On Compound, each asset has its market with buyers and sellers. This market determines the interest rate that the particular asset will have.

Brave – Browser and Privacy

Brave Browser and their native cryptocurrency, Basic Attention Token have taken the internet by a storm. Ever since their inception, the Brave vision of decentralizing the internet by allowing each user to manage their own privacy has envisioned a truly trestles future.

Brave Browser comes from the same team. It’s a web browser that blocks all advertisements and trackers. It gives users speed other browsers cannot, because the amount of data transferred is comparatively less due to the exclusion of advertisements.

When you put these together, you have an ecosystem that can revolutionize digital media like never before. You block traditional spammy ads and you watch ads that YOU GET PAID FOR. You can subscribe to digital content and contribute to your favorite content creators. You get faster browsing speed and none of your data is stored on a centralized server.

Brave had recently pocketed several high-profile names in the business, like, Binance, Wikipedia, YouTube, and the likes. This has allowed Brave to scale incredibly over the past few months.

Augur – Decentralized Prediction Market

Augur is an Ethereum based dApp (decentralized/distributed application) that functions as a prediction platform based on the “wisdom of the crowd” principle. It solves all the traditional problems concerning prediction markets, such as censorship, mediation, arbitrator, etc. Any individual seeking for an answer can create a question that involves the network users betting on the outcome, in the hopes that as more and more people bet on the outcome, the likelihood of being right increases. Augur uses the Smart contracts feature of the Ethereum blockchain to payout the rewards as soon as the contract expires.

Kyber – Liquidity Platform

The On-Chain Liquidity Protocol, Kyber Network is quite an innovative project that is trying to change the way we think of decentralized cryptocurrency exchange. They are developing a decentralized exchange protocol that will allow developers to build payment flows and financial apps.

At the most basic level, Kyber Network is a protocol that enables automated, decentralized, instant and low-fee exchanges of Ethereum-based assets. These assets include Ethereum (ETH) itself and ERC20 tokens. Kyber Network is one of the few ICO projects from the 2017 ICO boom that’s both alive and well.

Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.