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Decentralized Exchanges and Blockchain Growth

January 9, 2019

 

Blockchain professionals told us time and time again that decentralized applications would help us get to widespread adoption of blockchain technologies. The fact is however, we still have not crossed this plateau, which the current Dapp usage numbers serve to effectively illustrate.

 

With this in mind, the central question to answer then becomes: what are we missing? What sort of blockchain use case would help us to increase industry growth exponentially, like what arguably already occurred in 2017?

 

Today, via CoinDesk, David Lu penned an article that posits that decentralized exchanges could be the answer to many of our woes. Beyond their obvious use case in significantly increasing the overall liquidity of the crypto market, Lu claims that they could also serve as a special bridge for the gap in user numbers that Dapps have been experiencing since their inception.

 

To truly understand what this means, it is important to begin by being clear on how Dapps function. Essentially, the wide majority of them have their own native tokens, which means that none of these tokens are interchangeable between applications. In addition to this, most crypto users do not own many different tokens, according to Lu.

 

With these ideas in mind, Lu appears to conclude that decentralized exchanges could connect to all existing Dapps in order to provide what he calls a “seamless user experience.” Overall, what he means by this is that these exchanges could either create some sort of token that can be used with many different Dapps at once or simply do what they are already doing, except in a way that users never have to leave a Dapp to access the proper funds to use it.

 

In other words, the answer to Dapp and therefore, further blockchain growth, might lie in bridging all of the disparate tokens that create walls around each and every Dapp, due to a lack of interoperability.

 

Perhaps, 2019 might be the year of the Dapp and the DEX becoming one, in a sense.

 

 

By: BGN Editorial Staff

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