Among the crop of billion-dollar ICOs is $EOS, one of the top blockchains to have emerged from the crypto boom of 2017-2018. At the time of writing, EOS holds a $2 billion market cap and has $1.6 billion in 24-hr trading volume (according to CoinMarketCap).
While some may say that EOS has lost its momentum, dApp Radar data shows that close to 37% of the top blockchain games are powered by the EOS blockchain, EOS dApps account for 2 of the top 5 blockchain apps by users, and its community of developers haven’t shied away from exploring the new opportunities that DeFi may hold either — EOS-powered projects like Vigor (borrowing/lending), Chintai (platform for the issuance, management, and secondary trading of tokenized securities), Equilibrium (interoperable DeFi hub), and EOS Microloan currently rank in dApp Radar’s Top 25 DeFi Apps.
Yet, reports have shown that developers working on the EOS platform fell by more than 80% when compared to 2019 — so what gives?
The numbers aren’t always what they seem.
The sheer number of dApps built on a blockchain isn’t representative of how well a blockchain is being adopted — after all, with close to 2,000 ETH dApps listed on dApp Radar, only 10% have more than 1-10 users. In fact, when comparing the data between the number of dApps and dApp users, EOS dApps actually see 7% more users than ETH dApps.
For developers and product marketers who understand how an app’s experience — or more importantly, its ‘response rate’ — may impact usage, adoption and the lifetime value (LTV) of users, selecting a blockchain that doesn’t get in the way of delivering a seamless app experience is a critical competitive advantage that can’t be ignored.
For developers, technicalities matter.
App usage is impacted by a blockchain’s ability to handle transactions. The speed at which transactions can be processed directly impacts the overall dApp experience. For example, user A on an eth-powered dApp may have to wait a few seconds to several minutes for transactions that may go through several times quicker on a dApp used by user B that’s built on another blockchain like EOS which can handle greater transaction volume.
Unfortunately, despite its dominance, even as ETH moves toward 2.0 and expects to yield between 2,000-3,000 transactions per second (TSP) once its full transition is complete in three years, those speeds are already being superseded by projects like NEO, Solana, and EOS, which can process 4,000+ TSP compared to ETH’s 15. Not to mention, known issues such as ETH’s network congestion and prohibitively high gas fees force developers to seek alternative solutions based purely on technology performance and cost. And this is in spite of the significant network effects advantage ETH has over other newer blockchains.
New blood flowing into EOS
There’s no use pretending that many of the “OG’s” from the heydays of crypto ICO’s faced a much tougher challenge: establishing the idea of crypto and getting people excited about the potential of Bitcon. Fortunately, these first-generation hodlers have driven so much awareness that it’s paved the way for a new crop of developers to start pushing new use cases for blockchain technology.
In June, the first Ethereum Virtual Machine was deployed on the EOS.io blockchain by Telos, Everipedia became the first EOS token to be listed for trading with a $BNB pair on Binance, Lifebank used the EOS blockchain to matchmake blood donors/sponsors/centers, and OWNR launched a new wallet for managing EOS transactions in one place.
More notably, WordProof also received 1 million euro from the European Commission for its project, which gives consumers a method to verify the reliability of the content on the Internet — starting with WordPress.
And, at the turn of this month, Block.One announced it launched the highly anticipated EOS-based social media app, Voice.
Blockchain Enters Its Awkward Teenage Years, Trying to Find Product-Market Fit
Currently, the blockchain developer community is still very insulated — but the curiosity around building with blockchain is peaking.
From here, we can expect that as more developers arrive on the scene, finding product-market and technology fit will be more important than vanity metrics, like total attendees to a virtual networking happy hour.
Whether or not dApps can perform the way they need to — and the way that end-users expect them to — will be the ultimate test for today’s biggest blockchain companies. Beyond 2020, the only question worth asking will not be how big a community is, but rather, can your blockchain do what it says it can do in the whitepaper?
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