In 2019, the estimated market size of DApps was over $10 billion. As per the current growth rate, the market will reach $368.25 billion by 2027. The growth projection of the DApps market is pacing at a CAGR of 56.1%.
A single authority does not control DApps. Apart from that, DApps can provide services of regular traditional apps while enjoying the benefits of decentralization.
Technological advancements and innovation have shaped the world around us. One of the biggest examples of revolutionary technology is the internet. Many scientists, computer engineers, and programmers have developed the internet as a massive hub of information and communication. Over the course of time, the internet has evolved through many stages, culminating in the generation of web 3.0.
At the same time, the impact of blockchain in the web3 revolution has brought the limelight to the role of dApps in web 3.0 and how they bring value. The arrival of web3 invited a new breed of applications featuring the benefits of decentralization, immutability, and transparency. However, it is also important to find out how dApps can empower the web3 landscape. The following discussion reflects on the significance of dApps in web3 along with practical examples.
Before moving towards the importance of dApps in web 3.0, it is required to identify the definition of web 3.0 itself. It is the third generation of the internet, which helps websites and applications process information in smart ways. The support of new advancements such as artificial intelligence, big data, blockchain technologies, and machine learning can help in empowering a new generation of digital applications.
Where do dApps fit in the overall web3 landscape? As a matter of fact, you can develop a better understanding of web3 dApps only by reflecting on the important traits of web 3.0. The future of web3 demands universal applications accessible on multiple devices and software, with assurance of improved convenience in commercial as well as recreational activities.
This report contains data and insights about web3 development happening across the Ethereum, Polygon, Arbitrum, Optimism, and Solana ecosystems. It features data from Alchemy, CoinMarketCap, DappRadar, Dune, Etherscan, Github, and the Internet Archive. This data provides insight into NFTs, DeFi, DAOs, social, and other web3 verticals and the growing interest and development in the web3 ecosystem. Developer data includes insights about libraries like Ethers.js and Web3.js, verified smart contract deployment, and decentralized applications. Featured projects include Alchemy, Chainlink, Ethereum Name Service, Farcaster, The Graph, Lens Protocol, RainbowKit, Uniswap, WalletConnect, and many more.
The rise of data decentralization alongside a secure and transparent environment would depend profoundly on growth of new technologies such as blockchain storage and distributed ledgers. In the web3 landscape, people can find the route to a decentralized web that allows users to exercise rightful control over their data.
At the same time, decentralized infrastructure alongside application platforms can replace conventional models of centralized tech firms. You can understand the role of decentralized applications in web 3.0 by diving deeper into the properties of web3 ecosystem. Here are the notable traits of web3, which offer the favorable grounds for growth of decentralized applications.
Semantic Web
The semantic web concept is one of the notable components in web3, which focuses on meaning or emotion underlying messages. Semantic web can help in supporting the initiatives for helping computers learn about the meaning of the data. It can enable AI to develop real-world use cases providing opportunities for better use of data.
3D Graphics
The role of dApps in web 3.0 would also focus frequently on transforming the two-dimensional web into a three-dimensional one. New websites, services, and applications in web3 must be immersive with a 3D design, thereby specifying the new dApps design.
Artificial Intelligence
Machine learning and artificial intelligence would take foremost priority in the web3 landscape. AI can play a crucial role in designing web3 dApps with the capabilities for collecting customer feedback to develop a better understanding of product or asset quality. On top of it, artificial intelligence can differentiate between reliable and bad data sources to provide credible information.
Availability
The availability of digital experiences to users irrespective of their location is one of the notable traits you can find in web3. As a matter of fact, you can find the same highlight in the case of social media platforms that dominate the web2 landscape. If you look closely, the next improvement in web3 will focus on enabling access to digital services through any type of device, including IoT devices.
Why does DApps matter?
The discussion on the importance of dApps in web 3.0 would also rely on an understanding of decentralized applications. Amidst the rapid pace of technological developments, almost every new advancement focuses on keeping us updated. Today, we have multiple applications on our smartphones and computers for help with access to complex services.
Now, it is important to note that people have to grant some form of access to their private information for using the apps. For example, users have to enter their location data, contacts, photos, and other personal information for using the applications. These data points can deliver a comprehensive impression of user preferences and the patterns in their behavior.
Even if the notion of offering your personal information to credible centralized parties can seem reasonable, you must think of the underlying consequences. How do enterprises use the data you offer them for using their applications? The companies use your personal information for targeted advertisements. Enterprises show content to users who can ensure benefits for the organization rather than the users.
Decentralized apps or dApps can help in eliminating the intermediaries such as the enterprises. They can help users in availing different services without the risk of censorship for their content. On top of it, top web3 dApps examples show how users can avail digital services without the risks of termination of their accounts. Most important of all, decentralized applications prevent the leakage of personal information to unwanted third parties.
The development of decentralized applications on blockchain technology is one of the biggest highlights of the digital landscape. dApps can remove the authority of one particular organization exercising sole authority on its users. In addition, decentralized applications also remove the risks of centralized authorities intruding on user privacy. End users exercise complete control and ownership over their data in dApps alongside the privilege of deciding the precedents for sharing data with third parties.
The design of web3 dApps would show the use of a distributed system that offers freedom from any malicious attempts at disrupting service. For example, the system would be less likely to have any downtime due to DDoS or Distributed Denial of Service attacks. Since you don’t find data in the vaults of a specific organization, you would find limited possibilities for hacking the dApp network.
On top of it, decentralized applications also feature censorship resistance alongside a permissionless approach. As a result, users could enjoy the services of any decentralized application without any discrimination. Furthermore, dApps also features high levels of transparency while being trustless, thereby ensuring true decentralization.
Unlike centralized apps, the users need not provide their personal information for using DApps. The transaction process between two parties takes place with the help of smart contracts.
It is easy to develop DApps. This feature helps app developers to build innovative digital applications. The demand for such DApps has large use cases in major industries such as finance, banking, e-commerce, social media, and gaming.
The discussion on role of decentralized applications in web 3.0 would also focus on the use cases of dApps. A clear overview of the use of dApps for driving value-based improvements across various sectors is quite imperative. You can discover the following important applications of dApps in different sectors.
Social Media Applications
The first entry in web3 dApps examples would draw attention to social media applications. Majority of social media platforms, such as Instagram and Facebook, have emerged as integral highlights in the life of an individual now. Now, it is important to note that social media platforms have control over the personal information and other important data of users. Therefore, the need for decentralization in social media applications is an obvious necessity amidst the rising voice for data privacy.
If dApps find applications as social media networks, users can have better control over their data. You can explore the scope for plausible improvements in privacy of users alongside security of user data. The lack of a central authority offers the freedom from concerns about third parties capturing or leaking precious user data. Some of the popular examples of dApps serving as social media platforms include Steemit and Sapien.
Cloud Storage
The role of dApps in web 3.0 also becomes evident in the use cases for cloud storage. As of now, the existing data storage servers, such as AWS, are completely centralized in nature. Therefore, it is more likely that the data stored in such servers can be modified or even distributed to third parties without user consent. On the contrary, decentralized solutions for data storage would avoid storing their data on a centralized server.
Decentralized apps would leverage a distributed file system for data storage wherein data transfer is encrypted. Another important highlight in the applications of dApps for cloud storage refers to the division of data into multiple fragments. Subsequently, users can retrieve the fragments according to their requirements. Some of the notable examples of dApps in cloud storage services include Sia and Storj.
Browsers
One of the interesting applications of web3 dApps would also draw attention toward browsers. Conventional browsers such as Firefox and Google are basically centralized platforms. On top of it, the centralized nature implies that the browsers can store personal information of users such as location, social media information, passwords, and other details.
It is important to note that decentralized browsers will be a necessity in the web 3.0 landscape. Why? The answer is quite simple and evident in the term ‘decentralization.’ After all, decentralized browsers will be a staple highlight in the new decentralized web 3.0 ecosystem. The Brave browser is an example of a decentralized browser that can empower the web 3.0 landscape.
Streaming Applications
Entertainment will also be one of the significant highlights in web3 dApps examples as the world embraces the concept of a decentralized web. Popular streaming applications such as YouTube, Netflix, Amazon Prime Video, and Spotify are centralized in nature. The centralized platforms could impose censorship on user content alongside exposing users to target advertisements campaigns.
Now, the applications of dApps in the field of music and video streaming apps can introduce plausible improvements. First of all, content creators can receive reasonable value for their efforts alongside resolving the problems of copyright. The notable examples of dApps for music and video streaming include LBRY and UjoMusic.
Messaging Applications
The final and most important use case of dApps would refer to messaging dApps. You can understand the importance of dApps in web 3.0 when you figure out the vision for introducing private, decentralized messaging. Almost 3 billion people all over the world use different messaging apps, with a circulation of almost 145 billion messages on a daily basis.
Secure and private messaging has evolved as one of the prominent needs in the web3 landscape for avoiding privacy violations, data hacks, and cyber thefts. The most promising example of messaging dApps would refer to Secretum, which has been developed on the Solana blockchain platform.
PancakeSwap
PancakeSwap is a decentralized exchange (DEX). This decentralized exchange, built on Binance Smart Chain, allows users to swap between two BEP20 tokens.
PancakeSwap uses smart contracts to execute all trades. PancakeSwap gained popularity for the liquidity of the listed assets.
The platform also provides features such as Yield Farms, Syrup Pools, Lottery v2, Prediction Markets, and NFT Collectibles. CAKE is PancakeSwap’s native utility token. CAKE’s use case includes staking, yield farming, lottery participation, and governance voting.
To execute the token swap, the user must connect the PancakeSwap platform with Web3 wallets such as TrustWallet, MetaMask, or WalletConnect. The connected wallet stores the swapped tokens.
PancakeSwap users can execute the trade without waiting for the order to match. Another major benefit of using PancakeSwap is its low transaction fees.
Compound
Compound is a DApp that allows users to borrow, lend and earn interest in certain cryptocurrencies.
The Compound is built on the Ethereum network, and the users can deposit crypto funds to generate interest.
The platform allows depositing 14 different cryptocurrencies, such as USD Coin, Ether, and Dai, to name a few top ones.
To access the features Compound provides, the user needs to connect the platform with their wallet. For this, the user needs to connect wallets supported by the Compound platform, such as Metamask, Ledger, Wallet Connect, Coinbase Wallet, and Tally.
The platform uses an automated system to match a lender and a borrower. After finding the matching users, the platform exchanges funds from the liquidity pool. Moreover, the liquidity pool acts as a medium to collect the interest rate from the borrower and reward the lender.
COMP is the governance token and native crypto for the platform. The token allows users to cast votes that determine Compound’s future development. In addition, COMP holders have access to go through the inner workings, treasury, and platform protocol of the Compound ecosystem.
OpenSea
OpenSea is a decentralized NFT marketplace for trading, buying, and selling digital goods.
OpenSea is one of the largest marketplaces for NFTs. The user can open a free account on the platform to trade various listed NFTs. Besides that, the marketplace is customizable to develop NFT-based projects.
The creators are given the privilege to set their fees for their digital creations. The OpenSea user must connect their crypto wallet to trade the listed NFTs.
The trend created around the NFTs after the pandemic outbreak attracted massive users to OpenSea. Likewise, the marketplace lists NFTs in various categories to make it easy for buyers to find their desired NFT collections.
The major categories include art, collectibles, domain names, music, photography, sports, virtual world, utility, and trading cards. For instance, to sell an NFT, the user must create a collection, add the NFTs (video, audio, image, or art) and list them on the OpenSea marketplace for sale.
Splinterlands
Splinterlands is a play-to-earn digital card game. Moreover, the game uses NFTs to provide ownership to the players for their in-game assets and digital playing cards.
Splinterlands is a Web3-powered gaming platform developed to solve the issues faced by traditional card trading games. Apart from that, the gaming platform consists of hundreds of digital cards to enhance the trading game that rewards its players.
Splinterlands has a blockchain of its own that provides in-game stability. Apart from that, the gaming platform is adaptable to frequent upgrades.
The cross-compatibility feature is another major advantage of Splinterlands. As a result, the players can connect and interact with other players of major blockchains such as Ethereum, WAX, and Tron.
Splintershards (SPS) is the in-game governance token of the Splinterlands. Moreover, SPS also acts as the primary gaming currency to trade cards. In addition, SPS holders can participate in various governance-based decisions in the Splinterlands ecosystem.
To add more players to the gaming ecosystem, Splinterlands rewards the players with daily rewards, seasonal rewards, loot chests, ranked battle rewards, and leaderboard rewards.
Uniswap V2
Uniswap V2 is the second iteration of the decentralized protocol Uniswap. With the introduction of Uniswap V2, the users no longer needed to add ETH as one of the crypto assets.
Uniswap V2 allows the users to directly swap between two ERC-20 tokens to reduce the total number of transactions. Moreover, reducing the number of transactions helps the users reduce the gas fees charged.
The major benefit that helped Uniswap V2 to acquire a more user base is the simplicity in the execution of trades. Apart from that, the omission of the order book and other complex traditional trading templates helped to attract more users to the platform.
Another important feature of the Uniswap V2 is the ‘Flash Swap.’ This feature allows the user to withdraw any number of ERC20 tokens from Uniswap without paying an upfront cost. After the complete execution of the transaction, the user can pay accordingly.
Apart from the features mentioned above, Uniswap V2 provides On-chain price feeds that are difficult to manipulate and highly decentralized. Uniswap V2 uses Solidarity language for writing the smart contract. This feature boosts the technical improvement of the platform.
Arc8
Arc8 is a play-to-earn platform for mobile gaming. Also, the game rewards players for their loyalty, effort, and gaming skills.
The main objective of the Arc8 gaming platform is to promote the value of blockchain and gaming tokens to mainstream gamers. Therefore, the gaming categories include impressive 1v1 matches, multiplayer tournaments, and sponsored tournaments.
The GAMEE Token (GMEE) is the ERC-20 utility token of the gaming platform. The GMEE tokens are used as entry fees, gameplay payments, in-game rewards, and voting. In addition, the GMEE tokens can be used to rent, purchase, breed, and upgrade various in-game NFTs.
Arc8 gaming platform also rewards the players for inviting their friends. The platform rewards both friends involved in the referral process with GMEE bonuses at certain gaming levels. Moreover, the gaming platform has over 50 games, including live multiplayer games.
Socios.com
Socios.com is a DApp that empowers the fans supporting various clubs with tokens and rewards.
Socios.com provides fan tokens in the form of finite digital assets built using the Chiliz Chain. Apart from that, the governance power provided to the token holders allows the fans to participate in important fan-related decisions.
The endorsement of Socios.com by celebrity footballers played a crucial role in adding more fans to the community built around the fan token.
Apart from the governance benefits, fans can also benefit from exclusive promotions, perks, online rewards, and VIP experiences. Besides that, the communities built around Socios.com integrates the fans regardless of geography.
The major clubs partnered with Socios.com include PSG, Barcelona, Juventus, Man City, Arsenal, and Atletico Madrid. Moreover, the platform actively adds more major clubs and fans.
All the perks related to the Fan tokens are provided through the mobile application available on Android and iOS devices. Similarly, all the trading activities associated with the fans token occur in the Socios.com marketplace.
Step App
Step App is a DApp that combines fitness and finance. The application uses geolocation technology, metaverse, and NFTs for a better user experience.
The Step App rewards its users for participating in physical activities such as running, jogging, and walking. Apart from that, the app focuses on providing a social, competitive, and immersive experience with the help of user activities.
The trend around movement-based apps added more members to the Step App community. In addition, the reward system inspires the app users to participate in various physical activities.
The Augmented Reality feature provided in the app evolves and grows upon fulfilling fitness goals. Apart from that, the Step App enables users to combine their social experiences with their fitness on a global level.
FITFI is the governance token provided by Step App. The app users can buy SNEAKs to participate in various physical activities with the help of the in-game tokens KCAL. Besides that, the purchased SNEAKs reward the running user with KCAL tokens. In addition to that, the user can mint SNEAKs with KCAL tokens.
Alien Worlds
Alien Worlds consists of an NFT Metaverse that uses digital gaming assets to engage and compete in various gaming modes.
Alien Worlds provides an opportunity for players to stimulate economic collaboration and competition. Trilium (TLM) is the native token used on the Alien Worlds for planet governance, staking, gameplay incentives, and as in-game currency. In addition to that, TLM is also used to purchase NFTs.
Alien Worlds runs on Ethereum, WAX, and Binance Smart Chain (BSC). The active platform users are rewarded with TLM tokens for developing an in-game ecosystem.
The NFTs available on the marketplace are divided based on rarity and shininess. For example, the six rarity levels for the digital item include Common, Abundant, Epic, Rare, Mythical, and Legendary. Similarly, the five shininess levels consist of Stardust, Stone, Gold, XDimension, and Antimatter.
NBA Top Shot
NBA Top Shot is a marketplace that lists digital basketball collectibles as NFTs. Likewise, the fans can also trade, buy and sell the collectibles from the NFT marketplace.
The blockchain-based NBA trading cards were developed as a partnership among the NBA Players Association, Dapper Labs, and NBA.
The NFT platform is built using the FLOW blockchain developed by Dapper Labs. In addition, this project’s famous investors include Michael Jordan, Klay Thompson, and Kevin Durrant.
The NFT marketplace also lists NBA Top Shot Moments, which consists of video highlight clips in the form of NFTs. The video highlight also consists of famous moments from various NBA games. The value of such NFT videos depends on their rarity.
To buy the NFT collections listed on the NBA Top Shot, the user must register on their official website. After the registration process, the user also needs to get verified to take part in buying and selling of NFTs.
The registered users can purchase the NFTs listed on the marketplace with a debit or credit card. Apart from that, the users also can connect their wallets to the platform and purchase the NFTs.
In closing
The role of decentralized applications in web 3.0 extends beyond the scope of decentralization. Decentralized applications can introduce improved security alongside serving value advantages in different use cases. You can notice the transformation of many conventional digital services such as cloud storage and content streaming platforms.
The revisions introduced by dApps in the conventional services can help in easier transition towards web3. Many enterprises are gradually recognizing the importance of dApps for growing the web3 revolution. On the other hand, businesses must prepare for the web 3.0 transformation by following the necessary best practices. Learn more about decentralized applications and web 3.0 before you adopt any web 3.0 dApps.
The major benefits of DApp users include privacy, safety, low transaction fees, and flexibility. Despite the advantages mentioned, the user must ensure the credibility of DApp before engaging in any financial transaction.
In summary
Why dApps are the future?
🔵 What Are d’Apps
#dapps are digital programs or applications that operate on computer nodes. These nodes use a distributed network rather than a single server. (Geekflare)
In 2019, the estimated market size of DApps was over $10 billion. As per the current growth rate, the market will reach $368.25 billion by 2027. The growth projection of the DApps market is pacing at a CAGR of 56.1%.
🚨👾Over 12,000 and growing!
A single authority does not control DApps. DApps can provide services of regular traditional apps while enjoying the benefits of decentralization.
🔵 Why Do They Matter?
DApps provide prime importance when it comes to the user’s privacy. In addition, the other benefits of DApps include development flexibility and lack of censorship.
Unlike centralized apps, the users need not provide their personal information for using DApps. The transaction process between two parties takes place with the help of smart contracts.
It is easy to develop DApps. This feature helps app developers to build innovative digital applications. The demand for such DApps has large use cases in major industries such as finance, banking, e-commerce, social media, and gaming.
🔵 State Of Play?
The discussion on role of decentralized applications in web 3.0 must focus on the use cases of dApps. dApps are used in a variety of sectors to drive value.
📌 Social Media Applications
Instagram & Facebook vs Streemit and Sapiens
Users have better control over their data. You can explore the scope for plausible improvements in privacy of users alongside security of user data. The lack of a central authority offers the freedom from concerns about third parties capturing or leaking precious user data.
📌 Cloud Storage
Amazon Web Services (AWS) vs Storj
#dapps leverage a distributed file system for data storage wherein data transfer is encrypted. Users can retrieve the fragments according to their requirements.
📌 Browsers
Google vs Brave Browser
Decentralised browsers will be a requirement ito shape the web 3.0 landscape.
📌 Streaming Applications
YouTube,Netflix, and Spotify vs LBRY and UjoMusic
Content creators can receive reasonable value for their efforts alongside resolving the problems of copyright.
📌 Messaging Applications
Secretum
Almost 3 billion people all over the world use different messaging apps, with a circulation of almost 145 billion messages on a daily basis.
Secure and private messaging has evolved as one of the prominent needs in the web3 landscape for avoiding privacy violations, data hacks, and cyber thefts.
🔥 Expect to see more #stablecoins in the future. These digital currencies use innovative price-stability mechanisms. Developers creating blockchain-based decentralized applications can expect to create more apps around stablecoins.
