DApps Need to Nail Usability to Move From Crypto Niche to Mainstream

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From CryptoKitties to Compound, decentralized applications and decentralized finance have become increasingly popular in the blockchain space, but the sector has gone through a fair share of teething problems since DApps first appeared in 2017.DApps were popularized around the same time that Bitcoin experienced a monumental surge in value toward the end of 2017.

Positive trend for DApp useCointelegraph reached out to Dapp.com to get an accurate set of data on the number of DApps and their users since platforms such as Ethereum allowed for their development.

Kyle Lu, CEO of Dapp.com, shared data and charts that show the trend of DApps being deployed on Ethereum alongside the number of users: "You could see that it is a good trend of usage climbing as more dapps were built and more users are engaging."

"We've been monitoring the whole DApp market since 2017. A main reason driving interest and usage of DApps is innovation of business models - all the 'hype' in the DApp area is driven by businesses and products delivered in a way that people haven't seen before."

"More importantly on Ethereum mid-to-late 2019 was the stage at which DeFi dapps - notably MakerDAO, Uniswap, Kyber etc - started to gain traction. By the time MakerDAO relaunched DAI with multi-collateralization in November, most of the building blocks were in place for what we now see - a vibrant DeFi ecosystem that is attracting billions of dollars of value through novel interactions between dapps."

The Dapp.com CEO directly attributed the second-quarter spike in users to yield farming and an increase in users on the Compound decentralized lending platform: "Yield farming has created a strong boost for Ethereum token holders to stake their assets in DeFi dapps for interest return."

Improved user experience key to improving DApps and DeFiThere seems to be a unanimous belief that the future growth of DApps and DeFi is dependent on improvements to user experience, ease of access and functionality.

In the past, users may have been daunted by the complexity of DApps and their features: "With all those improvements made, mass adoption is just a matter of time when we have more innovative products being launched."

"New users not only need to have a wallet or extension installed, but they also need to know how to use it properly with Dapps. Once this initial hurdle is overcome, the overall experience becomes much more accessible and intuitive."

Speaking at the digital conference Unitize on July 9, Richard Ma, co-founder and CEO of Quantstamp, highlighted security concerns as a major hurdle facing DApps and DeFi applications.

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