Changes of Blockchain Landscape in the DeFi Era - Part 1

2020-11-26 08:50:00 · 1975 views · 5 min read

 

On 23rd Nov, Dapp.com CEO Kyle Lu was invited by BiYong to share his vision on the topic “Changes of Blockchain Landscape in the DeFi Era”. 

 

 

In this sharing, Kyle talked about several major issues that the blockchain community cares about the most: DeFi’s lessons? What’s after DeFi? Next big public chain after Ethereum? His prediction of the BTC price? Read on for more insights.
 

 

Part 1

  • About Dapp.com

  • The main categories of DAPP

  • What directions/categories have great potential besides DeFi?

  • What’s the future trend about dapp do you think? 

 

Part 2

  • What's the current landscape of blockchains in terms of DeFi?

  • How will the public blockchains’ develop?

  • What DeFi leaves us besides the wealth effect?

  • The price of $BTC in the future?

 

 

 

Q1: Dapp.com started working on the dapp space a long time ago. And you guys own a very expensive domain apparently. Could you tell us a bit more about Dapp.com? 

 

We started to focus on dapps in 2017 and then officially launched Dapp.com in April 2018. I noticed the dapp sector when I was still at Achain when many developers were producing NFT-related dapps such as CrytpoCelebirtiy, CryptoCountries, Cryptokitties, etc. During the time when ICO blew everyone’s mind, all the ICO projects called themselves dapps. The concept of “dapp” was used as a gimmick. We felt that blockchain technology should be more than just issuing tokens, and there would be many interesting applications on more blockchains with their own ecosystems, rather than just on Ethereum. So we built Dapp.com by financing. 

 

 

The initial version was quite like Apple’s App Store, yet it had already demonstrated dapps’ on-chain statistics like DAU, Volume. As the essence of dapp is transparency, we strictly requested all the listed dapps to submit their smart contracts. Gradually, we support dapps on EOS, TRON, and other public blockchains. Up til now, we become the world’s largest dapp analytic platform, covering 20 major blockchains including Korean blockchains like Klaytn, ICON, etc. 

 

Dapp.com now expands the scope to more than dapps, but also centralized applications. As long as the project has potential, it’s possible to be recommended on Dapp.com. More in-depth dapp statistics are provided as well. Users are able to analyze each dapp with the help of our exclusive new functions such as Social Signal* or Token Price Indicator*.

 

 

*Social Signal: a new metric that reflects the general popularity of a blockchain project on social networks. You can check all dapps’ social signal scores on the dapp ranking page or each topic page

 

*Token Price Indicator: price analytics by comparing a project’s on-chain users/transactions/volume with its token price. For more insights, read Price Indicator for Your DeFi Token Trading.


 

 

Q2: Recently, DeFi is super hot. It has driven a lot of blockchain users’ attention. But actually, DeFi is just a part of DAPP. Could you please share with us the main categories of DAPP?

 

Currently, the major categories are DeFi, DEX, NFT, Game, Social, and Gambling. You can find the products of all these categories on the dapp.com “Topics” with 9 ranking dimensions.

 

 

DeFi: Decentralized Finance. It includes lending, insurance, stablecoins, etc.

 

 

DEX: Decentralized Exchanges. Many classify DEX into DeFi, since trading is the most important component of finance. There are various types of DEX: order book, token swap, derivatives, etc.

 

 

NFT: NFTs (Non-Fungible Tokens) often combine with blockchain games as in-game assets. A lot of digital collectibles and artworks are also issued on the blockchain as NFTs. The hammer price of some crypto artwork now even reaches millions of dollars.

 

 

Social: Social dapps are not mature enough. They mainly rely on a token incentive system, combined with censorship-resistant content. Cent on Ethereum and Voice on EOS is working on these aspects. Steemit on Steem was the most successful blockchain social platform before acquired by TRON.

 

 

Gambling: Gambling dapps mainly use blockchain technology to generate random numbers in order to achieve open and transparent gambling. Actually, the trending DeFi liquidity mining was first launched successfully in blockchain casinos.


 

 

Q3: In the DAPP categories you have mentioned above, what directions/categories you think may have great potential besides DeFi?

 

At present, the market is vigorously making a fuss on NFT+DeFi. The point is that NFT is "more valuable" than the ERC-20 tokens issued by projects. NFT can be applied to many modes in the DeFi market, so everyone thinks that NFT is the future. (Insights: Tired of the DeFi Drama? Farm NFTs!; What’s Next After the DeFi Booming? NFT!)

 

 

NFT has always been a very active sector. In fact, NFT’s success is earlier than DeFi and Dex. ERC-721 has been available just after ERC-20 on the contracts. The earliest scene of ERC-721 is NFT. The projects that are currently very popular in the NFT field are actually projects that have built a solid base in 2017. For example, Axie Infinity, who was recently listed on Binance, has launched the game since 2017 and always grown at a stable pace. It’s just that the recent NFT heat has raised everyone’s attention on it. In the DeFi era, popular projects like Compound, Kyber, and AAVE, all have been developed even before the word DeFi was known. When AAVE used to be named ETHLend, it had only a few hundred users in half a year, while now it is the best lending protocol. These projects are not launched because a certain field has become popular, but are pioneers in various fields. So I think the potential lies in not a certain direction, but in the team and what they are doing. What is valuable will be sooner or later discovered.

 

 

 

Q4: Compared with app, the threshold of Dapp is high to many users. But the boom of DeFi has brought a lot of users to DeFi and to dapps. And users started to become more familiar with the usage of dapps. So what’s the future trend about dapp do you think? 

 

In fact, I think it is inaccurate to say so. Actually, DeFi's rich wealth effect has brought many token traders, but DeFi users are only a part of them. DeFi user entry is still quite high. When the traffic is busy, it will cost dozens or hundreds of dollars of gas fee to trade a token of several hundred dollars. That means the transaction fee accounts for more than 10% of the transaction, which is scary. So DeFi is actually a game for whales; it’s not affordable for most individual users. Moreover, the cognitive cost of DeFi is quite high, and the operations involved are more complicated than the general entry-level dapps. Thus, I don't think DeFi has brought many C-end users. You can check the user growth indicators of each dapp on Dapp.com, then you’ll find out.

 


I think the real impact of DeFi is to show more valuable usages of blockchain, which will be more integrated with other usages in the future. I suggest that everyone try some DeFi products now that the price of Ethereum gas is not so scary. Or try some dapps on Layer 2. For example, dapps on Matic have lower gas fees and are very convenient to use. Decentralization is the future, and it is important to have the ability to use dapps. You can follow many tutorials on Dapp.com (DeFi Arbitrage Interest-Earning Strategy Using the Cheapest USDT in The World).

 

 

In Part 2, Kyle introduced what he thought are the most important elements for the development of each public chain, and his prediction on BTC price in the future.

 

 

Stay tuned, we'll release more in-depth views in Part 2 tomorrow!

 

 

 

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