What Is the Role of DApps in Strengthening a Blockchain’s Network Effect?
Decentralized Applications (DApps) are the primary source of utility for a blockchain. More DApps mean more use cases, attracting diverse user groups and developers.
This positive feedback loop, where utility attracts users and users attract more developers, significantly strengthens the network effect. The total value locked (TVL) in DApps is a key metric for measuring this utility-driven growth.
Glossar
Total Value Locked
Collateralization ⎊ Total Value Locked, within decentralized finance, represents the aggregate value of crypto assets deposited in smart contracts, functioning as collateral for various protocols.
Defi Dapps
Application ⎊ DeFi Dapps are autonomous, smart-contract-driven applications that execute financial services directly on a blockchain, eliminating the need for traditional intermediaries.
DApps
Concept ⎊ DApps, or Decentralized Applications, represent a class of software programs that operate on a decentralized peer-to-peer network rather than a single server.