Let’s face it — dApps from the most blockchain platforms are in trouble
The crypto market is going through a long, long crypto winter that has started from the early 2018. However, it looks like the dApp markets are steadily growing up.
The visible success on the overall dApp market can work as some good proofs for the investors to hold hopes for a brighter future. But, the invisible parts of the iceberg under the water seem to show something little different from their hopes.
If you look at the dApps that are built with the major blockchain platforms (e.g. Ethereum, EOS, TRON, Steem), you can see that roughly 80% of the dApps fall into the categories of casual games, gambling, or high-risks (i.e. pyramids). What’s more surprising is that 60% of active users, 90% of the transactions, and 86% of the transaction volume are coming only from these three categories.
In case of EOS, 45% of active users, 74% of transactions, and 82% of transaction volume is coming from just the gambling-type dApps.
It looks even worse when it comes to the case of TRON. TRON has recently announced its debut in Japan market, and has publicly asked the developers in Japan to stop developing gambling dApps so that they could follow the Japanese regulations. Currently, 70% of active users, 96% of transactions, and 94% of transaction volume take part in the gambling dApps built with TRON.
And we cannot help but bringing this question to our table — What made these gambling dApp services to flourish (or become the mainstream) in the dApp market then?
The major cause can be defined as 1) the lack of usability of blockchain in general, and 2) the failure to form a virtuous cycle from the problem no. 1.
Honestly, the low usability in blockchain is such an obvious issue. It’s nearly impossible to make the non-crypto enthusiastic, ‘general’ users to register to a centralized crypto exchange. Also, it doesn’t make sense to expect those users to generate a wallet, store private keys, and then successfully transfer and stake the assets on their own.
The problems in lack of usability are not just the only case applied to the users — dApp developers are facing similar issues as well.
The knowledge in ‘Solidity,’ another dev language, is required for developing Ethereum or TRON based dApps. And Solidity demands a quality learning time for the dApp developers. Thus, developers face a dead end even before they take their first steps in development.
Also, the issues like gas fee charge for Ethereum, staking for EOS based dApp development weigh a huge costly burden to dApp developers, considering the current size of dApp developers.
The low technical completion found in existing blockchain platform — often represented as the scalability issues in Ethereum — is one of the elements that limit dApp service planning and development.
Low usability in blockchain is slowing the formation of sustainable growth-cycle in platforms. Users don’t even take blockchain projects seriously either because it doesn’t look interesting or easy enough to them. The developers on the other side, hardly find the motivation to develop dApps at the first hand because there lies a very thin chance for user acquisitions, and dApp development is also as challenging as well. These issues rising from both sides are only worsening these catastrophic situations.
This unending catastrophe has only deepened a well, that made the ‘user’ acquisition a lot easier. By users, it can be defined as the early crypto adopters who find games, gambling, or high-risk dApps more interesting and thus can isolate the existing dApp users themselves from the general users who are less familiar with blockchain or dApps.
These particularly targeted dApp audiences are more than capable when adopting or playing the blockchain-based gambling games, and it is relatively easier for the dApp developers to build those kinds of dApps as well. And one of the blockchain’s specialties — transparency — is the icing on the cake that can be added on top of the gambling services. And all these elements build up the perfect ‘why’ that explains how the mainstream in the blockchain dApp market has turned out to be a ‘gambling market.’
The Strategy and Direction for Real-User Acquisition and Virtuous Cycle
As we reminiscence back to January 2018 — the time of crypto bubble’s renaissance, the blueprint we had in our mind certainly didn’t look like what we are seeing as of now. The ideal picture that we all had in our mind was like this: an advanced world where anyone can appreciate and reap the benefits in a different way, with the blockchain-based or cryptocurrency-based services. Deep down in our heart, we know that the bubble wouldn’t even have been formed if the crypto enthusiasts only had blockchain casinos in their mind.
And from the very beginning of the project, LINK Team has been chasing after this ultimate goal: making the foundational expectations toward blockchain and cryptocurrency come true in our everyday life.
In order to accomplish our goal, we deeply understand that we need to resolve the low blockchain usability issues first, and then build a virtuous cycle in the blockchain platform and the ecosystem. Our daily work is dedicated for that mission.
To enhance the usability in blockchain, we will provide the LINK users the level of user experience (UX) that is no different from the experience of using LINE Services. The users will be able to use LINK blockchain services and dApps just as easily as using the currently-servicing LINE apps. Even the users (who are not familiar with the blockchain) will be able to use and enjoy the service seamlessly, whether the service is blockchain-based or not.
Also, our endeavor to create an idealistic development environment for dApp developers is becoming more concrete. The dApp developers will no longer need to suffer from the learning barriers they faced when they were required to learn another unfamiliar language like Solidity. Building new dApps on the dApp developers’ side will become just as easy as developing non-blockchain Internet/mobile services since LINK Team will make commonly-used and familiar dev languages available along with various development tools at the LINK Chain development environment.
All these works to improve the currently-lower blockchain usability will only better the foundations of LINK platform eventually so that the LINK project can meet the needs of both the users and the dApp developers, and thus form a virtuous cycle for the LINK ecosystem.
Additionally, unlike other blockchain platforms, LINK project is seeking ways to speed up the formation of a virtuous cycle in the blockchain ecosystem. For that, we will develop and launch more dApps that the general users can find interesting (for example, the currently available LINK dApps like 4CAST, Wizball).
And then, LINK Team will implement LINK and LINK Chain to popular LINE Services. The dApp services that LINK and LINE are preparing will work like a catalyst that can absorb general users into the blockchain dApps, and disrupt the dApp market that has been dominated mostly by gambling services, which in the end will adopt more of 3rd-party dApp services into the LINK Chain. To expand the LINK Network, LINK Team is also working on building a partnership network with worldwide corporations and blockchain projects.
Ultimately, LINK Team will resolve the problems that deeply lie in the former blockchain platforms by applying the strengths and know-how of both LINE and LINK Team. That way, LINK Team be able to establish the blockchain crypto-asset ecosystem and the very future: when everyone can reap the benefit of blockchain in everyday life.