Fluence Labs Report: Gaming, Transaction Fees Key Parts Of DApp Ecosystem

Blockchain, Innovation, News | January 29, 2019 By:

Fluence has published what it claims is the first Decentralized Application (DApp) Report. The company reached out to every DApp project they could find, over 1600 in total, and wound up speaking with 160 to create the report about the state of the DApp industry – its outlook, challenges, monetization and funding.

Evgeny Ponomare, co-founder and CEO of Fluence Labs, explained the report findings in greater detail:

After the ICO craze of 2017 that led to the inception of a line of new blockchain platforms, 2018 was predicted to be the year of DApps. It had a perfect start with CryptoKitties’ success and an explosive growth of similar DApps was highly anticipated.

Fluence Labs aims to develop a decentralized network capable of carrying out the real-time high-volume data processing for the emerging Web3. As an infrastructure project, we‘ve been curious about what was happening in the DApp market. This research started as an attempt to contact the DApp developer community and dig deeper into what was going on.

To approach this in a systematic way we have surveyed multiple DApp project developers and founders. The goal was to separate facts from speculation and rumor and find out how many active DApp projects are there, how hard is it to reach them, who are they and what are they up to, and, finally, what challenges do they face?

We believe that insights discovered in the process can help not just us, but all the other projects and actors in the field to better understand the current state of DApps in terms of user adoption and available technology.

Key insights:

  • Despite harsh market conditions, the majority of the projects that filled the survey were started in 2018.
  • A quarter of the surveyed projects are gaming DApps.
  • About half of the projects use a centralized cloud backend and centralized tools like Infura to connect to the ethereum blockchain.
  • Transactional fees prevail as the central monetization model for most projects.
  • New user on-boarding is mentioned by more than three quarters of the respondents as the major blocker to adoption.

These findings might be of interest not only to developers working with Web3 tech directly, but also to investors inside and outside the crypto space, or to anyone planning to start a DApp project looking to learn about the challenges that might lie ahead.

Some background knowledge of crypto inner workings and key terminology (public/private keys, Layer 1/2 blockchains, MetaMask, etc.) might be required for a better understanding of this report.

This report is structured in a way similar to the production workflow. It starts with the inception and the choice of a technological platform, then goes into development obstacles, and in the end discusses adoption and business issues. Feel free to read the report in full or jump right to the section you’re most interested in!

For those of you who would like to dig for more information, we have also published the anonymized raw results.