- Why Ethereum and what is ERC20
- What are Decentralized Applications(DApps
- Top Ethereum Tokens and Applications
The cryptocurrency space has its attention concentrated on Bitcoin. However, another blockchain technology that is taking the world by storm is Ethereum. Ethereum network is called the supercomputer of the world today and it is no exaggeration when we say it is revolutionizing the way we think about applications. After being reckoned as the second-largest cryptocurrency by market capitalization, the Ethereum blockchain system has started to make its name in the Decentralized application sector.
Every other day, there is a new dapp that evolves to solve a new issue utilizing the Ethereum blockchain protocol. Numerous Dapps or decentralized applications have sprung up within the crypto space. Before deep-diving into the top Ethereum applications and tokens, let’s understand why developers are so keen to develop on Ethereum and the various ERC20 tokens.
Why Ethereum and ERC20
Ethereum is often confused with its native token ether. While ethereum is the blockchain network, ether (ETH) is a cryptocurrency. The set of rules that Ethereum based projects or tokens must follow is called the ERC20 standard. These tokens built on the ethereum protocol are often referred to as ERC20 tokens. Read about What is ERC20 and its significance for ethereum in detail.
Is Ethereum the only protocol to build Dapps? No. There are other protocols such as EOS, NEO, Tron, Stellar, and Cardano. However, Ethereum is the biggest player in this game. Ethereum being a network protocol allows users to run and create smart contracts over the decentralized network. A smart contract is nothing but a book of code that contains the specific functionalities and the code to interact with other smart contracts.
While Bitcoin is famous for storing numbers Ethereum can store code.
What are Dapp developers so fond of Ethereum? Because Ethereum can remove the requirement of third-party for peer-to-peer transactions. Since there is no middleman due to the code, the transaction costs are reduced along with the time required to transact.
Just as Bitcoin acts as a store for value Ethereum removes the need for a middleman giving rise to a completely trustless system.
What are Decentralized Applications(DApps)
Dapp is just like any other software application we use, It could either be web-based or designed for a mobile installation. But what is it that makes dapps different? Unlike the normal applications, these decentralized apps are built on decentralized networks, like Ethereum. In short, decentralized apps are nothing but frontend combined with smart contract backend.
Top 3 Ethereum Tokens
|Enjin Coin (ENJ)||$1,752,460,107||$255,583,394|
|The Sandbox (SAND)||$747,400,302||$159,556,415|
Source: CoinMarketCap; (All Values are latest by October 2021)
DAI is an Ethereum-based stablecoin (stable-price cryptocurrency) whose issuance and development is managed by the Maker Protocol and the MakerDAO decentralized autonomous organization.
The price of DAI is soft-pegged to the U.S. dollar and is collateralized by a mix of other cryptocurrencies that are deposited into smart-contract vaults every time a new DAI is minted.
The crypto market is notorious for its volatility with even the largest, highly liquid coins such as Bitcoin sometimes experiencing price changes (both up and down) of 10% or more within a single day. Under these circumstances, traders and investors are naturally predisposed to add safe-haven assets to their portfolios, whose stable price might help offset significant market fluctuations.
One such kind of asset is stablecoins, of which DAI is one example
Enjin Coin is a project under Enjin which is an ecosystem of interconnected blockchain-based gaming products. Enjin Network is a blockchain-based social gaming platform allowing users to create their clans as well as websites and also chat and host virtual item stores.
It even allows the developers of the game to tokenize the in-game items on the blockchain protocol. Enjin Coin is an ERC-20 token that backs the digital assets that are issued while playing. These digital assets which are basically NFTs (Non-fungible tokens) can be traded, bought, and sold with a definite real-world value.
Every asset that is minted on the Enjin platform contains ENJ (Enjin) which is a minting resource that is locked inside NFTs and is removed from circulation. There are various benefits of minting the blockchain assets using ENJ such as:
|Ensures scarcity and transparency|
|Gives instant liquidity|
|Infuses the blockchain assets with a reserve value|
|Serves as a utility within the game and apps|
The Sandbox is a blockchain-based virtual world allowing users to create, build, buy and sell digital assets in the form of a game. By combining the powers of decentralized autonomous organizations (DAO) and non-fungible tokens (NFTs), the Sandbox creates a decentralized platform for a thriving gaming community.
By creating a universe where gamers can create and collect blockchain-based assets, the Sandbox aims to revolutionize the market. It makes a niche for itself in the global market of gaming. The company started out with a bang and attracted support and investments from numerous big names in the gaming industry. These include brands like Atari, Helix, and CryptoKitties.
By focusing on user-generated content, the Sandbox creates a metaverse of involved players who contribute to the platform’s further development. Not only that, by introducing the SAND token, the Sandbox promotes decentralized governance and allows users to share their views and ideas about the development of the project.
Top 5 Ethereum applications
|Dapp||Category||Market Cap||Number of Users|
|Axie Infinity||Games||$7,409,733,854||1.85 million|
Source: DappRadar; (All values are latest by October 2021)
Summing it Up!
Ethereum indeed has emerged as one of the pioneering and revolutionary projects. Although Bitcoin paved the way towards cryptocurrency, it was Ethereum that showed how blockchain can be deployed beyond the finance sector. Today the DApps and ERC 20 tokens are being talked about the most in the crypto community. These Dapps offer some amazing insight into the day-to-day issues faced by users and are proving to be a great way to resolve the underlying issues. Investors must consider these Ethereum tokens and applications before they chalk out their next investment move.
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