Since its launch in 2015, Ethereum has played a pivotal role in the digital market thanks to the high technology of the blockchain, which enables programmability. This aspect enables developers to create decentralized applications on the public ledger, covering the needs of a broad audience who seeks decentralization and expanding the use cases of the currency, becoming more than a store of value and giving it the potential to reshape many aspects of the traditional world. For example, the Eth network is popular for decentralized finance, which is a wide range of services that aims to reshape the global economy and promote inclusion. Also, the broad NFTs market is another thing that makes Ethereum so popular among investors, and, all in all, the ecosystem addresses the main issues of the real world, such as scalability, transparency, and security, providing users with a safe and reliable landscape for their activities with dApps. So, we can say that decentralized applications are technologies that bring new opportunities, but could they experience further innovation this year?
What are dApps?
dApps are decentralized applications or software programs that run on the Ethereum programmable blockchain. They are created thanks to the deployment of smart contracts, which play the role of traditional contracts but automate some processes and provide creators with some regulations and standards that have to be met in order to enable the development of the apps. The underlying technology of the smart contracts is the Ethereum virtual machine, which is the driving motor for their creation, and it’s very important in the ETH network, enabling, in fact, its programmability. There is a wide range of decentralized applications serving multiple purposes. For instance, the most popular one is DeFi for decentralized finance, which provides financial services to users such as borrowing and lending; the gaming industry is also involved, as players can enhance their experience with decentralized gaming platforms and, last but not least, there is also a wide range of NFTs apps, enabling investors to make use and trade their financial instruments, or even create unique non-fungible tokens. There are several features of dApps that can reshape the digital world. For instance, some core benefits are the cost-saving services of DeFi, the high-security levels, borderless accessibility, and transparency since they’re designed on a public and open-source ledger.
Soneium, a Sony project on Ethereum
You must’ve heard about the layer-2 solutions that make the leader of the market, Bitcoin, partially programmable in 2024, but the project still needs some work done. In the case of Ethereum, since the network is programmable by nature, things get easier. Sony is a global corporation that once again demonstrates its ability to improve the digital world with the launch of its latest project on Ethereum’s blockchain, a layer-2 solution called Soneium. Layer-2 solutions are protocols or technologies that can be described as an additional blockchain that works on the layer-1 chain, aiming to enhance the security of the network, promote scalability, and improve all the functions of the network, in this case, Ethereum. The Sony group brings new opportunities for the ETH community with this advancement because the company promises a “net-generation” technology that enables the creation of a wide range of dApps, improving the current capabilities of ETH, providing users with a faster, more transparent, scalable and secure ecosystem. Understandably, the involvement of this trustworthy corporation in the ETH world gives some extra trust points to the network, encouraging new investors to consider the currency and other businesses to hop on the technological trend as well as to take advantage of the computational power of Ethereum.
dApps volume on the rise
For the past few weeks, the dApps volume has risen to 36%, and despite the price fluctuations of the currency, the popularity of the decentralized applications seems to be getting back on track with the coin, promising a great outcome for investors. The demand for dApps is increasing constantly because users seek decentralization, and they see potential in the wide range of financial services that could reshape the global economy. Therefore, when the demand for ETH increases, so does its price, so we can expect a new milestone for Ethereum in the near future thanks to innovative technologies. There is also a considerable increase for dApps on other blockchains as well, such as Solana, which wants to follow the path of its rival, but according to experts, ETH is surely here to stay, so there is no chance for SOL to steal the spotlight this year.
Decentralized finance aims to reshape the economy
The decentralized finance ecosystem on Ethereum is one of the most transformative aspects of web3. These applications aim to provide users with a secure financial landscape to benefit from traditional services such as borrowing and landing, but without relying on a central authority like a bank, cutting some considerable costs and saving some time thanks to the transaction speed. Also, they’re widely accessible, promoting inclusion for people from all over the world who don’t have access to traditional financial institutions. Currently, this advanced ecosystem is working to improve the main benefits of this alternative financial world, providing temper-proof data coordination for high immutability, addressing real-world issues having greater transparency, and enabling users to have full control over their activity and funds. Moreover, Defi can also be used for the decision-making process around financial opportunities, as they offer advantages like data analytics tools, tracking protocols, and instruments for risk management, which can bring the trading experience to the next level.
Final thoughts
In the ever-evolving digital world, innovations happen in the blink of an eye for the programmable blockchain Ethereum. The popularity of decentralized applications is no surprise for crypto-enthusiasts, as they are completely reshaping the market. Still, we can safely say that the best is yet to come, and Ethereum’s dApps market will surely continue to expand, pushing the currency to a new milestone and further innovations.
