E&Y: Most ETH Dapps Not Used Productively
According to Paul Brody, the Head of Innovation at Big Four audit firm Ernst & Young (E&Y), 83% of the Dapps on the Ethereum (ETH) network are not used productively. Brody made this statement as part of his talk on developments taking place in blockchain and cryptocurrency industries on May 31 during the Fintech Forum that was hosted by the US SEC (Securities and Exchange Commission).
Major Issues Around Blockchain Tech Implementation
The Fintech Forum was organized by the Strategic Hub for Innovation and Financial Technology (Finhub), a division of the SEC that was launched in October last year.
During this Forum, Brody spoke about the major issues being faced by the industry in blockchain technology implementation during the first panel discussion. The discussion was entitled Capital Formation Considerations.
During the discussion, Brody stated that global crypto disruptors needed to go back to the basics (first principles) in order to make blockchain technology successful. This would help them understand how this nascent technology should be applied so that solutions could be developed, rather than chasing money.
E&Y’s Head of Innovation also pointed out that the aim of capital markets was to take investments and put them to productive use. Brody indicated that the cryptocurrency space was not doing too well in this aspect. It was at this point that he claimed that most of the Dapps (decentralized applications) developed on the ETH network were not being put to productive use.
Brody referred to blockchain analytics firm’s DApp.com’s Quarter 1 2019 report, where it was shown that only 14% of the Dapps on the Ethereum network were being used at cryptocurrency exchanges. 44% of the Dapps were being used for gambling, while another 13% for gaming.
He said that Dapps needed to focus on technology implementations for productive use cases such as distributed computing, the development of new business models, and fractional real estate infrastructure. Brody said that if this were done, there would be a tremendous as well as lasting legacy that would have a positive impact on the industry.
Dapps Important to the Development of the Crypto Industry
Decentralized Applications are in important development in the cryptocurrency and blockchain industry. They not only use network blockchain features, but they also give users an avenue to use cryptocurrencies beyond the current speculation on exchanges.
Added to that, Dapps also attract development interest the same way that the Android and Apple stores do, giving developers the creative freedom to create unique products.
However, because of the fact that the Dapps have not been utilized to their full potential, the Ethereum network has seen a decline in its Dapps market share.