SFOX data Report – A recent report revealed from cryptocurrency prime dealer has outlined a somewhat bleak image of the present state of dApp development on the Ethereum [ETH] platform.
In line with the information obtained from the analysis of around thirty million Ethereum [ETH] transactions, the major 10 smart contracts on the network are dominated by ICOs along with the exchange activities, with a sole spot for the well-known CryptoKitties dApp.
The report shows that contrary to the promise of Ethereum as an easy and powerful engine for powering smart contracts that dApp developers might use for any purpose, the value and scaling problems are still present as a major challenge to the actualization of that vision.
Ethereum [ETH] Smart Contract Promises Vs Actual Reality
At the peak of Ethereum’s [ETH] Bull Run few months past, ETH reached a high of $1,372 USD, a figure that was driven for the most part by speculative pressure, however conjointly by hopes sparked by the promise Ethereum offered as a smart contract and decentralised international computing platform. To investors, the core worth of Ethereum [ETH] was the utility conferred by its smart contract capabilities, that not solely created a brand new framework for executing trades and transactions, however conjointly gave developers the chance to form localised applications that may basically disrupt several existing centralised business models.
The recent information from SFOX, however, reveals associated altogether completely different image of how the things have clothed actually. Employing a Jupyter Notebook to question Google’s public Ethereum dataset hosted on BigQuery, SFOX has disclosed that of the major 10 Ethereum [ETH] smart contract addresses by transaction volume, only 1 is held by a dApp.
Nine of the ten addresses featured are dedicated to centralised exchange activity, decentralised exchange activity and ERC20 ICOs token sales. The sole dApp smart contract on the list is the CryptoKitties dApp that creates non-fungible tokens running on Ethereum’s ERC-721 customary. In alternative words, out and away the overwhelming majority of Ethereum [ETH] smart contract activity remains dedicated to trade Ether and Ethereum-based tokens. dApps have merely not set out within the manner that investors hoped they might, and there can be a variety of reasons for this.
Earlier in Aug., as per a report published Ethereum and EOS had solely 8 dApps with quite three hundred active users between them. This factors cited for this lack of activity were mainly gas prices on the Ethereum network and measurability issues. Ethereum [ETH], particularly, is ill-famed for experiencing high gas prices throughout times of network congestion that effectively cripple dApp operations.