Ethereum has struggled to see the emergence of practical and widespread applications over the past two years, despite its $ 1.2 billion market cap. Some analysts expect a new wave of decentralized applications to make headway in the coming months.
In an interview, Akasha CEO and Ethereum founder Mihai Alisie attributed the prediction of a resurgence of decentralized applications to the growth of the Ethereum developer community and the incubators’ optimism about the potential of Ethereum applications.
Alisie further noted that Ethereum applications like Aragon, uPort, Ethlance and Raiden Network are making their debut after seeing significant progress in the development, alpha and beta testing stages.
The first wave of Ethereum applications failed to satisfy
The first wave of Ethereum-based decentralized apps like Augur, Hedgy, Arcade City and Swarm, all of which have attracted multi-million dollar investments through venture capital firms and crowdfunding campaigns, struggled to please the public.
Since early 2015, Swarm has been striving to make real strides in securing a broad user base of its decentralized file storage platform. Augur, the decentralized forecasting market founded by Joey Krug, a member of the Peter Thiel Scholarship, was also unable to live up to its hype.
With the demise of the DAO, Ethereum investors feared that the network, which prioritizes flexibility and functionality, may not see unique and useful decentralized applications that can take the network to a new commercial level with the actual user base and active operations.
The new generation of decentralized applications
Currently, the eyes of Ethereum investors are on the new generation of decentralized applications. Applications such as uPort, the next-generation identity system developed by ConsenSys, and the decentralized labor market platform Ethlance have become highly anticipated projects within the Ethereum community with the expectation that they can use the Ethereum network to secure and maintain an active user base and real issues to solve in real life.
Ethlance’s business model and strategy in particular are exciting, especially because it is a completely decentralized labor market platform that does not incur any service fees or memberships. Unlike centralized job search platforms, Ethlance is a transparent application that allows users to find jobs, hire, create invoices, and receive salaries in Ether on the same platform.
Ethlance does not cut any percentage of users involved in the process, including employers and employees. More importantly, anyone on the network without a membership is eligible to apply for an unlimited number of jobs. The only requirement users have to meet is the Ethereum gas fees, which is the same as the transaction fees on the Bitcoin network.
Ethereum desperately needs next-generation decentralized applications that can serve and maintain a real and active user base of people who use the Ethereum network to solve real-world problems.