Overview of the Ethereum (Ethereum Ecosystem) ecosystem and important pieces 2022
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Ethereum is an open source, distributed computing platform based on Blockchain technology, capable of executing smart contracts (Smart Contracts). In Smart Contract , the terms written in the contract will be executed automatically when the previous conditions are satisfied, no one can interfere. Ethereum also allows developers to build decentralized applications (DApps) and decentralized autonomous organizations (DAOs).
Some terms:
- Decentralized applications ( DApps - Decentralized Applications) are independently deployed software, not on a single server, but distributed in a distributed manner on decentralized repositories and can be written in any language.
- Decentralized Autonomous Organizations (DAOs) are organizations run by members based on a set of rules that are encoded in code. All members have the right to vote on important decisions of the DAOs. Members participating in DAOs will have rewards to encourage participation in operating DAOs.
Ethereum was first conceived by Vitalik Buterin in 2013, this idea was proposed by the author as an improved solution for the Mastercoin (now OmniLayer) project. Vitalik has come up with a solution that allows MasterCoin to support more types of contracts without having to add complex features. However, it is a pity that these solutions are not applied.
Advantages of Ethereum
Despite the growth of alternative blockchain networks, decentralized applications (dApps) exist almost exclusively on the Ethereum blockchain. The Ethereum Virtual Machine (EVM) is a key driver of this trend, with development kits and application templates serving to continuously improve the developer experience. Combined, these tools allow the development of any application that lacks its own platform.
The Ethereum network currently dominates dApp development for a number of reasons:
- Ethereum implements a development interface that reduces programming time and helps to quickly launch projects.
- The Ethereum developer community has grown significantly since the launch of the platform. And Ethereum retains significant network effects from a global coalition of technologists who remain committed to maintaining the network and actively developing user resources that drive adoption.
- The ability to fully monetize dApp projects encourages others to join the Ethereum ecosystem.
Introduction to Ethereum (ETH Coin)
Role of Ethereum (ETH Coin)
In the ecosystem of the Ethereum network, Ether (ETH) is mainly used to calculate transaction fees. Currently, ETH is the second most powerful cryptocurrency in the market after Bitcoin. In the Altcoin world, there is still no competitor to surpass ETH. Similar to BTC, ETH can also be used to pay for all goods and services at transaction points that accept this currency.
Projects that want to develop on Ethereum also need to own and lock a certain amount of ETH. This indirectly accelerated the price of ETH in recent times when the number of projects on Ethereum grew strongly. As the Ethereum ecosystem is still a fertile ground for the platforms to build on, the price of ETH will certainly continue to increase and stabilize in the near future.
Ethereum Coin Basic Information:
- Token Name: Ethereum.
- Ticker: ETH.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Type: Utility.
- Max Supply: Unlimited.
- Circulating Supply: 116,569,797 ETH.
Ethereum Ecosystem
Data (Aggregate data)
- Covalent (CQT) is a project that provides API Index in a uniform way for users. The data that Covalent API provides is very diverse, suitable for native Crypto, companies providing Crypto services, companies accepting Crypto as a payment method, etc. Today's rather large problem-solving platform is The access to data of the Blockchain is very complicated and the ways of access are different. To do this, Covalent has indexed and decrypted the entire Blockchain, available for developers to use through a unified API. This API will expose billions of blockchain data points for every single wallet. Therefore, projects do not need to know how to write query code, but only need to use Covalent API to find out all the information.
Oracles (Offchain Data Delivery)
- ChainLink (LINK) is a decentralized Oracle network, a bridge that relays information and data from the real world to the Blockchain platform and vice versa. ChainLink was officially launched in 2017 by Smart Contract ChainLink Ltd and is currently headquartered in Cayman Islands. All sources of information and data when put on the Blockchain through ChainLink are considered as a condition for activating smart contracts. After the Smart Contract is started, it will generate an output data including: A payment, certificate of ownership, ...). From there, we can see that this platform plays an important role in helping Smart Contract connect with real-world data.
- API3 (API3) is a project built to manage and profit from decentralized APIs (dAPI) at scale. The platform solves the problem of connecting APIs in a continuous and up-to-date manner. Traditional API service providers face a lot of hurdles if they run an oracle node themselves. API3 saw this and the project proposed an Airnode solution that solves all the problems that the current API service providers are facing.
- DIA (DIA) is a Blockchain protocol project in the field of data management (Decentralized oracle network). DIA provides a reliable and verifiable bridge between off-chain data (Off-Chain Data) and Smart Contracts, allowing these Smart Contracts to use the above data source to build many different types of Dapps. The goal of DIA is to gather data analysis, data providers, data users, thereby forming a strong ecosystem, becoming the "Wikipedia of financial data".
Lending & Borrowing
- Compound (COMP) is a Lending platform that allows users to lend and borrow crypto assets without going through any third parties. The essence of Compound's operation is a Liquidity Pool Asset (LPs) where lenders will transfer their crypto assets into the pool thereby creating liquidity and in return they will receive interest. Compound borrowers join an asset pool that needs to borrow and borrow money, in return they are collateralized by an asset class that Compound backs. Compound does not create its own stablecoin, but acts as an intermediary, allowing borrowers and borrowers to interact with each other.
- Aave (Aave) is a decentralized lending protocol (Lending DeFi) that allows users to lend and borrow multiple cryptocurrencies using Stable coins or other coins with different interest rates. Aave has the same features and functions as the Compound above, but Aave also has its own characteristics. Outstanding features such as smart contract insurance (protects your assets against great risks in Defi such as smart contract errors, liquidation...), Flash Loans (loans without collateral), Flexible interest rates , Diverse and unique collateral
- Curve Finance (CRV) has partnered with Compound to create a Lending Pool, allowing users to optimize profits from both Curve Finance's transaction fees and Compound's lending interest.
- Maker (MKR) is a smart contract platform built on top of the Ethereum Blockchain network. It is used to support and keep the price of stablecoin DAI (1 DAI = 1 USD) stable, with the mechanism of Collateralized Debt Positions (CDP). MakerDAO's platform allows users to use their Ethereum assets in exchange for DAI Stablecoins via smart contracts.
- Some other prominent Lending platforms include CREAM, LIQUITY, DUCK, ...
Central Bank
Updating
Wallet
- Metamask is an Ethereum (ETH)-based cryptocurrency wallet, as well as an add-on plugin that allows users to run Dapps right on a computer browser. Currently, the wallet supports Chrome, FireFox, Opera and Brave browsers as well as mobile apps. Metamask as a gateway connecting users' wallets with projects such as AMM (decentralized exchange), Lending (lending), Farming (providing liquidity), ... Metamask is considered easy to use, friendly interface friendly, integrated Swap so there is no need to connect to other AMMs, saving time. However, the swap fee is still quite high compared to the common ground.
- Some other wallet platforms such as Argen, Mycrypto, Trust , Balance, MyetherWallet, ...
DEX/Liquidity
- Uniswap (UNI) is a decentralized exchange (DEX) protocol (or can be understood as AMM - Automated Market Maker) built on the Ethereum Blockchain. The platform provides a trading solution between ERC-20 tokens, users can use Uniswap to swap tokens, add tokens to pools to earn profits or list tokens without going through any middle party. any time. Of course all interactions are done directly on-chain so to use there will be a gas fee to maintain. Uniswap has become the most significant gas supplier on the Ethereum network and the most widely used decentralized application to date.
- SushiSwap (SUSHI) is a decentralized cryptocurrency exchange, built on top of the Ethereum blockchain. SushiSwap was created with the intention of improving the Uniswap platform. In terms of form or function, SushiSwap is basically the same as Uniswap and is considered a fork version of Uni. Although it is a branch of Uniswap, it has separated from this platform and has many differences, the most prominent of which is the SUSHI token. Uniswap does not have a native token, does not generate revenue, does not own a reward mechanism for players to contribute, so it brings a lot of limitations and inadequacies. Meanwhile, SushiSwap completely overcomes the above disadvantages. SushiSwap has its own token, has a clear purpose, and has a system for dividing profits.
- Curve Finance (CRV) is a decentralized exchange (DEX) with a similar model to UniSwap. However, Curve does not focus on token-to-token trading, it relies on stablecoins as the basis for exchange. The idea behind the platform came from the growing need to trade between stable coin pairs, from which Curve Finance developed a way to reduce the cost and number of transactions.
- In addition, there are other exchanges such as DODO, Any Swap, ...
Bridge
Wormhole is one of Solana's first chain bridges with Ethereum following the ERC20 standard to SPL Tokens, the token standard of the Solana blockchain. Wormhole allows many existing projects to seamlessly move tokens between multiple blockchains. This flexibility is extremely important because they help the community take advantage of many untapped resources.
Some other Bridges such as: Connext, Bifinex, Ethereum Name Service, OKEX, ...
Asset Managermant
- dHedge (DHT) is a decentralized asset management protocol built on Ethereum. dHedge allows anyone to create their own private equity fund on Ethereum or invest in funds managed by others non-custodial using Synthetics Assets. This helps users keep ownership of their funds, investment managers cannot steal investors' capital. Thanks to dHedge's analytical techniques and transparency on the Ethereum platform, investors can keep track of what transactions the manager is making as well as what assets are held in the manager's pool.
- Some other Asset Management can be mentioned such as SET, PieDAO, FURUCOMBO
NFT / Gaming
- Axie Infinity (AXS) is a Blockchain game (NFT Gaming). In the game, players will collect and nurture imaginary creatures called Axies. Similar to when playing Pokémon GO, you can do quests to collect Axies, team up to fight, and buy & sell Axies with other players. The Axies will be encrypted into NFT and recorded on the Ethereum Blockchain so ownership of the Axies is secured. With Marketplace, players have a decentralized marketplace to trade Axies with global players. This is a very successful self-made game developed by a group of Vietnamese people.
- OpenSea is a non-fungible exchange (NFTs) that allows users to post, exchange and trade their NFT assets based on smart contracts in blockchain technology. On OpenSea, users can participate in the exchange, purchase and sale of NFT collectibles, game items or characters, art videos, etc. OpenSea is built and designed almost in line with current market trends, creating a large source of liquidity for a large number of NFTs in crypto & non-crypto.
- The Sandbox (SAND) is built as a virtual game ecosystem, allowing users to role-play and experience the game in the most authentic way. This gaming platform is developing on the Ethereum blockchain. With The Sandbox, players can participate in creating their own digital assets in the form of NFT non-fungible tokens. Those NFTs will then be exchanged and transferred at Marketplace. At that time, even players can easily make profits from the NFT they have created.
- Some other prominent projects such as: CryptoKitties, NFT Worlds, SORARE, My Crypto Heroes, ...
Yield Farming
- Curve Finance (CRV) is a Yield Aggregator (similar to APY.Finance) that helps liquidity providers enjoy transaction fees (0.04%) and lending interest from yEarn or Compound. With this feature, CRV platform users will have more income with Yield Farming besides Lending or DEX function.
- TrueFi (TRU) besides Lending function is also a platform to help Yield Farming users. Lenders deposit TrueUSD into the TrueFi pool which is used for lending, earning interest and farming TRU tokens. Unused funds are deposited into the Curve protocol to maximize earnings.
- mStable (MTA) is a decentralized Stablecoin ecosystem that allows swapping, storing, and securing stablecoins on mStable, a community-powered decentralized platform powered by $MTA. Although not too prominent, the platform's Yield Farming is still noticed by everyone.
- Some other projects such as Celer, Badger, Deversifi, ...
Synthetics
- Uma (UMA) is a protocol built on top of Ethereum that allows users to exchange synthetic tokens. Synthetic assets are designed to mimic the value of other assets, giving investors leverage to trade digital and traditional assets within the cryptocurrency ecosystem. Price oracle services are available on the market, Uma encourages users to participate in the process of checking whether the collateral value is undercollaterized. The platform allows users to trade any asset using the ERC-20 token without directly interacting with the asset itself.
- Vega Protocol (VEGA) is a protocol for executing derivatives and leveraged transactions on a decentralized network (DEX) Platform built on Tendermint and using a proof-of-stake synchronous algorithm ( Proof of Stake) should be able to process thousands of transactions per second, fees are charged only when a transaction is made, and can be free to send, cancel and modify orders. The highlight of Vega is the ability to automatically calculate leverage, build liquidity with high incentives, allow users to participate in market making through recommending, modifying and approving markets.
- There are also many other projects such as: SYNTHETIX, dYdX, Undex, Lyro, Lien, Dforce, ...
IDO Platform
SushiSwap (SUSHI) is not only a large DEX, but also an IDO platform to help projects raise capital. The platform with MISO in the ecosystem provides a set of open source smart contracts developed to support the launch of the project on the SushiSwap exchange.
Insurance
InsurAce (INSUR) is a decentralized insurance protocol that aims to provide reliable, robust DeFi insurance services to DeFi users, with very low premiums and sustainable return on investment. InsurAce has the same operating mechanism as a traditional insurance company, with two main segments: insurance and investment. The platform has outstanding features such as extremely low premium, products are also richer and more accessible, users can earn more project tokens by staking.
The above are summaries of the Ethereum ecosystem compiled by Hay Mod Game on January 9, 2022, hope they will help your research. With the strong growth of dApps on Ethereum, there are many opportunities with new projects on this platform.
