dApps Already Built on Ethereum Show Its Potential, Even 'Without Scaling', Cybersecurity Professional Argues

Anthony Sassano, a “cyber threat detection expert” and the co-founder of EthHub, a “fundamentals-focused, open source, community-driven Ethereum research and resources hub”, has said that there are already legitimate use cases for Ethereum - even though the blockchain network has not been able scale effectively.

Sassano, a resident of Australia and an IT and computer programming graduate from La Trobe University, argued via Twitter that “people are putting too much emphasis on scale as a ‘make or break’ for Ethereum.”

List Of Useful Apps Deployed On Ethereum

He pointed out that “without scale”, the following platforms have already been developed on Ethereum:

  • MakerDAO: an ecosystem consisting of a stablecoin (Dai) and the issuance of “collateralized loans” - which is managed by “decentralized governance”,
  • Stablecoins (a few examples):
    • Gemini Dollar (GUSD) - ERC-20 compliant token backed 1-to-1 with USD;
    • USD Coin (USDC) - “an Ethereum token, so you can store it in an Ethereum-compatible wallet, like Coinbase Wallet.”
  • Burner Wallet: an initiative that aims to allow users to exchange “an intuitive currency like DAI” through a user-friendly interface. It’s best suited for places “where it's hard to find important goods with the traditional currency or the currency may fluctuate immensely in value due to inflation.”
  • Augur: an Ethereum-based decentralized predictions market platform,
  • Gnosis: a predictions market network built on Ethereum,
  • Uniswap: a protocol for “automated token exchange” on Ethereum,
  • Compound: an “Ethereum protocol that establishes money markets with algorithmically set interest rates”,
  • Dharma: a “suite of smart contracts and developer tools that make it possible to borrow and lend cryptoassets on blockchains like Ethereum”,
  • dYdX: a protocol for “decentralized margin trading and derivatives”

In response to Sassano’s claim that it’s not absolutely necessary for Ethereum to scale - in order for its platform to offer value, Ari Paul, the chief information officer at BlockTower Capital, a professional trading and portfolio management firm focused on cryptocurrencies, remarked:

Disagree. Many [Ethereum-based applications] exist but can’t work in a meaningful way with current limitations. Augur is a prime example.  It’s a great proof of concept but not a credible consumer product currently. If it can’t support even a few thousand active users….

Working Well Without Scaling Does Not Mean "We Don't Need To Scale"

Clarifying what he meant, Sassano said his “point was that [Ethereum-based apps] work in some way without scale” and that MakerDAO “works very well without” having to make upgrades to Ethereum. However, he acknowledged that he “didn’t mean to say that Ethereum doesn’t need to scale.”

Expressing confidence in Ethereum’s long-term potential, Twitter user Mike Fernholz (@MikeFernholz) said:

Many of these will improve and become more efficient, like Veil’s use of [the] 0x [protocol] (an Ethereum-based specification for building decentralized crypto exchanges) to batch transactions. I don't think Augur's goal is to be consumer facing right now.

'Bitcoin Type' Privacy Enhancing UTXO Transactions Now Available on EOS

Omar Faridi

The developers of pEOS, a project focused on enabling private and “untraceable” transactions on EOS, one of the largest platforms for building decentralized applications (dApps), have noted that they intend to provide tools which will allow users to conduct efficient token transfer transactions while maintaining their financial privacy.

“Accelerating Any Aspect of EOS” in Direction of Providing Greater Privacy

As explained in pEOS team’s Medium blog post, published on May 16, 2019, the privacy-enhancing crypto project is "much larger than just delivering pEOS.” The development team wrote:

We consider part of our mission to help educate, provide support, provide tools, and accelerate any aspect of the EOS blockchain in the direction of providing privacy enabled features and technologies. We strongly believe in the multiplicative effect this can have to every aspect of the EOS ecosystem.

Bitcoin Type UTXOs for EOS

In order to add more functionality to the EOS blockchain, while promoting economic privacy, the developers of pEOS have introduced a new smart contract which “implements bitcoin type” unspent transaction outputs (UTXOs) for EOS-based tokens.

As mentioned in pEOS team’s blog, UTXO was first used by the developers of the Bitcoin protocol, and it is “one type of output which can be either unspent (UTXO) or spent.” The outstanding balance of a UTXO-enabled wallet can be calculated by adding up all its spendable UTXOs, pEOS’ blog noted.

A UTXO Needs to Be Spent “as a Whole”

Transactions are processed by spending a certain number of UTXOs while producing new UTXOs for the recipient (of a transfer) and for any change that is returned to the sender, pEOS’ blog explained. The pEOS team clarified that “amounts in UTXOs don’t mutate.” This means users cannot “spend only some part of a UTXO.” In order to conduct such transactions, users must spend the UTXO “as a whole.”

According to pEOS’ team, these “constraints on what a UTXO is and how it is immutable, is what allows for privacy algorithms to be built on top of them.” For instance, the privacy-centric CoinJoin algorithm can be used with the smart contract-based UTXO code released for EOS, pEOS’ developers revealed.

On May 17, 2019, Block.one, the Cayman Islands-registered developer of EOS, released new software development kits (SDKs) for both Swift and Java developers. The latest SDKs for EOS aim to provide more support for native smartphone applications in order to offer “richer, more engaging experiences.”