Centralized Applications and Exchanges are ruling over the Crypto industry, Decentralized Applications (dApps), and Decentralized Exchanges (DEX). As we wrote before, Developers have been pretty vocal in encouraging users of centralized systems to use more frequently decentralized networks and applications.
Online users do not control the data they share and all kinds of valuable data and personal information are easily accessible by hackers. That’s a problematic part of the Internet to which Blockchain technology and Cryptocurrencies offer some solutions. Decentralized applications and systems are less efficient in processing information than centralized platforms, but they don’t require a middleman to function or to securely manage users’ information.
Dapps connect users with providers directly, removing much of the costs that fall upon the users. Jackson Palmer, the creator of Dogecoin spoke recently about the issue and said:
“The “build it and they will come” approach simply doesn’t apply to Blockchain technology because it assumes that the bulk of the users are so dissatisfied with the centralized versions that they will bypass the switching costs”
Because of the shortcomings of Decentralized systems, developers need to incentivize users to switch to Decentralized Exchanges and Decentralized applications. Decentralized systems are open source and could prevent censorship, fraud, forgery, single-point failure, and more.
How can Developers incentivize the use of Decentralized Applications
Developers can look at already existing and successful Decentralized Apps or Decentralized Exchanges. Certainly, if they are successful, they are doing a lot of things right. Open-source developers and communities like EOS and Ethereum are already advancing in the field and seeing progress.
Protocol-based solutions for scaling like Ethereum’s Sharding and Plasma are revolutionary in themselves, but they are also expected to scale Ethereum’s capabilities and improve Ethereum’s Blockchain network.
For now, Ethereum and EOS are the biggest communities for developers for Decentralized applications. Regarding front-end and User Interface, Decentralized Applications need a lot of improvement to be attractive and friendly enough for all users.
A better User Interface for Decentralized Applications will streamline and accelerate the commercial adoption of Decentralized Applications and Decentralized Exchanges. The users’ shift from centralized platforms to decentralized alternatives will be slow, but the needed process for the whole community.
And this is only one of the steps necessary for a bigger decentralized adoption. Dapp and DEX operators will need to find additional ways to incentivize their users. A successful example is the Brave Browser. Brave directly compensates and incentivizes users by rewarding them with the network’s native token – Basic Attention Token (BAT).
The Brave team announced last year that they are surpassing 3 million monthly active users and thus having the highest active user base from all dApps. Regarding Cryptocurrencies Jackson Palmer also added:
“Meanwhile, stand-alone base digital currencies such as Ethereum and Bitcoin are increasingly being perceived by the masses as investment vehicles, rather than actual currencies due to retail investors apps such as Robinhood, etc… so ETH and BTC are “just like other stocks” to a lot of people”