If You Build It, They May Not Come: Dogecoin Creator Critiques the State of DApps
Jackson Palmer, an Adobe product developer and the creator of Dogecoin (DOGE), has recently begun encouraging developers in the cryptocurrency community to find manners in which to convert centralized systems to decentralized applications (dApps).
However, due to the fact that decentralized applications and systems are much less efficient in processing information in comparison to centralized platforms, the transition may prove to be a difficult feat.
Palmer recently took to Twitter to note, “The ‘build it and they will come’ attitude simply doesn’t apply to ‘blockchain for X’ because it assumes that the bulk of users are currently so dissatisfied with the centralized version that they’d absorb typically large switching costs.”
Perhaps the most reasonable system to decentralize at this point in time are the cryptocurrency exchanges. Decentralized exchanges, or DEXs for short, currently drive the majority of DApp activity on the Ethereum blockchain and have gained greater attention since Binance, which stands as the world’s largest digital asset trading platform, revealed its DEX that is currently in development.
Though, at this time, the 3 most popular decentralized cryptocurrency exchanges, IDEX, ForkDelta and Bancor, have fewer than 4,000 active daily users and have a fraction of the volume found on the top 50 centralized cryptocurrency exchanges.
In order to boost adoption, Palmer recommends dApp creators find manners of incentivizing users to switch to decentralized methods by the same means Brave Browser utilized to compensate users with BAT, which acts as its native token. Last July, the Brave team announced that the company had surpassed three million active monthly users, which has been the highest numbers of active users any dApps has seen.
Another fantastic example can be found with the Kin (KIN) blockchain, which recently surpassed the daily active users of all dApps on the Ethereum blockchain. The user activity comes from the two major applications active on the Kin blockchain: the Kik messenger beta and Kinit, which rewards users with Kin for completing daily activities like surveys, quizzes, interactive videos and more. Both of these apps are fully integrated, allowing a user to participate in the decentralized economy without realizing it.
Moving forward, other blockchain projects might look to emulate the Brave and Kin model as a method to further promote mass adoption of cryptocurrency and decentralized systems.