Vitalik Buterin and two other programmers established Ethereum, a decentralized blockchain featuring smart contract functionality, in 2015. In 2017, the development of Ethereum dApps skyrocketed. The number of projects has expanded tremendously. Entrepreneurs have begun to explore the potential that the Ethereum platform offers thanks to its blockchain technology, which allows dApps to be developed on top of it. Ethereum’s digital currency, ether, currently has the second-largest market capitalization. Also, the potential of Ethereum as a platform for developing dApps has driven a rush of entrepreneurs raising funds through initial coin offerings (ICOs).
Rune Christensen, a Danish entrepreneur, founded MakerDAO in 2014. It is an organization developing technology for loans, savings, and a stable cryptocurrency on the Ethereum blockchain. It has developed a protocol that allows anyone with ETH and a MetaMask wallet to borrow money in the form of DAI, a stablecoin. Users can create a set number of DAI by locking up some ETH in MakerDAO’s smart contracts–the more ETH locked up, the more DAI can be created. Users just pay back the loan plus any fees when they are ready to unlock their ETH, which serves as security for their DAI loan.
It is one of Ethereum’s Decentralized Finance ecosystem’s most popular and longest-running projects. They have roughly 2.3 million ETH locked up in their protocol so far, which is almost 2% of the total ETH supply.
It was launched in 2018, and it is one of the most widely used decentralized exchanges in the crypto community today. The growth of it has resulted in a greater focus on decentralized finance. This exchange, in keeping with decentralization principles, has no control over the cash of its users. Rather, in a truly decentralized environment, the exchange facilitates trades between users.
Another feature of this exchange is that it uses an automated market maker (AMM) technology to make trading easier. As a result of this arrangement, smart contracts manage the liquidity pools that control coin exchanging. Liquidity pools are managed using a typical order book mechanism in other centralized exchanges.
Uniswap employs the AMM method to set asset prices using a pricing algorithm. This system incentivizes investors to provide liquidity and execute transactions at a pre-determined market price without regard for supply and demand laws.
It was first released in 2017, and it gained traction in 2019 after becoming a Google partner. Chainlink is a platform that greatly enhances smart contract capabilities by allowing access to real-world data and off-chain computation while keeping the security and reliability assurances inherent in blockchain technology.
Smart contracts are pre-specified agreements that analyze information and execute automatically when certain conditions are met. Some of the conditions for smart contract execution necessitate the use of real-world data. As a result, the smart contract receives that information via dApps.
For example, it can be used in an insurance claim in the event of a natural disaster. When a natural disaster strikes, the platform sends live data to the smart contract, which, if the data matches the contract’s conditions, executes immediately.
It was launched in 2018. Axie Infinity is a digital pet community where you may purchase creatures known as Axies and use them to fight, explore, and breed with other Axies. It was created by the gaming company Sky Mavis and has run on the Ethereum cryptocurrency. Although the game has an 18+ classification, it is visually enticing to younger children due to its Pokémon-style design and lack of a clear age-verification mechanism.
The game can be played in two different ways. Smooth Love Potion (SLP) is one of them. SLP is earned by completing daily missions and playing adventure games or arena matches. SLP is a resource that can be used to breed Axies in an infinite amount.
AXS tokens are another resource. There are only 270,000,000 of them available in the game. AXS is a cryptocurrency based on Ethereum. AXS token holders have governance rights in the game, which means they may make decisions concerning the game’s future. If this trend continues, they may be able to buy out Sky Mavis and run a truly decentralized economy in a game. In the game’s world, named Lunacia, players can also buy virtual pieces of land.
It’s a lending platform that makes use of the Ethereum network to operate. Stani Kulechov designed Aave in 2017. This decentralized lending service allows users to lend and borrow money without having to go through a middleman or a central authority. Users can also earn interest on their digital assets via the platform.
For its loan services, the Aave platform is heavily reliant on smart contracts. A distributed network of computers running the Aave software manages the smart contracts. One of the main features of the Aave program is the ability to create lending pools. On the Aave platform, lending pools allow users to lend or borrow money. Users who want to borrow money must submit collateral, and all collateral must be provided in DAI, a stable cryptocurrency.
Alice is a social financing and impact management software that aims to increase philanthropic transparency. The platform’s purpose is to encourage social groups, including charities, NGOs, and social companies, to operate initiatives on the Ethereum blockchain-based Alice platform.
Because each project’s performance is publicly visible, investors can eventually select and give directly to the social programs that are genuinely producing the greatest benefit. A portion of the fees paid to utilize the Alice network goes to a decentralized fund that awards grants to promising initiatives that lack the means to implement the accurate assessment. Grants are awarded based on a vote of Alice token owners.
Mist Browser is immensely popular since it serves as Ethereum’s end-user interface, making it the preferred tool for browsing and using Dapps. It is also specifically designed for non-technical users.
The official Ethereum wallet client, Mist Wallet, is also included with Mist Browser. It supports two wallet solutions, allowing users to create both a simple wallet and a multi-signature wallet for added protection. While it is intended to be simple to use, it does have one important flaw: users must first download the full Ethereum blockchain before using the wallet.
There are numerous Ethereum-based projects, where each offers different services to the users. Many projects are still being established under this development. Mist, Uniswap, Aave, Alice, Axie Infinity, Chainlink, and Maker Dao are among the top seven projects.