According to Dappradar statistics, 8 of the ten most used dapps operate on delegated proof-of-stake (DPoS) networks. Interesting statistic because DPoS is not a widely used consensus method.
We can list the main networks using DPoS as Hive, EOS, Steem, Wax, Tron, and Solana. All but Solana and Tron are linked to @dan Larimer. Steem and EOS were founded by Dan Larimer. Hive was built on Steem's code, and Wax on EOS'. Wax and Hive are currently hosting the Alien Worlds and Splinterlands games, which are in the top two regarding the number of users.
Dappradar Stats
The top 10 applications with the most users are listed in the table below. (As of 5.9.2022)
| Chain | Dapp | Daily User |
|---|---|---|
| Wax | Alien Worlds | 181k |
| Hive | Splinterlands | 161k |
| BSB Chain | Pancakeswap | 159k |
| Solana | Gameta | 117k |
| Wax | Farmers World | 85k |
| Wax | Atomic Assets | 58k |
| ETH | Good Dollar | 38k |
| EOS | Upland | 37k |
| Solana | Magic Eden | 36k |
| BNB Chain | Drip | 34k |
The website click-through statistics show that @risingstargame would also be in the top five if its statistics were reported correctly by Dappradar. Even if we leave Rising Star, we see five play-to-earn games on the list. It also has 3 DEFI and two marketplace apps.
Should we attach special significance to the fact that eight of the top ten decentralized applications are DPoS? To answer this question, I want to focus on transaction fees.
Gas Fees of Several Blockchains
We can see the transaction fees of specific blockchains through the application named Gassss.xyz. BTC and ETH are the blockchains with the highest gas fees at $0.31 and $0.15, respectively.
BTC and ETH are the blockchains with the highest transaction fees. This situation can be attributed to the Proof-of-work (POW) consensus algorithm, which creates high IT costs. In the past bull season, we also saw Ethereum transaction fees go above $50. The decrease in interest in DEFI applications and the NFTs influenced the reduction of prices. In addition, side chains that provide scaling solutions also caused Ethereum gas prices to decline. However, it does not seem possible to make social media transactions or play games by paying $0.15 per transaction.
Working with a proof-of-stake (POS) consensus algorithm, AVAX, Matic, and Cosmos have gas fees of $0.02, $0.01, and $0.04, respectively. By the way, we know that these values can change over time.
Blockchains working with the proof-of-stake consensus algorithm usually have around 100 nodes. Of course, there are blockchains with nodes far below or above this number. When we consider that the number of nodes of ETH and BTC blockchains is expressed in thousands, we see that POS chains provide advantages in terms of both transaction time and the number of transactions while sacrificing decentralization.
DPoS Governance Model
In POS networks, the ability of validators to generate blocks and receive rewards is proportional to the number of coins they stake. It is possible for investors who do not have the technical knowledge to earn some of the rewards by delegating their coins to validators.
In Delegated Proof of Stake networks, coin holders choose the validators (witnesses, according to Hive terminology) that will create the blocks. The voting rights of the community members are proportional to the coins they stake. Witnesses are usually engineers and find support to the extent of their contribution to the development of the infrastructure. Therefore, DPoS can be compared to a parliamentary system where engineers are deputies. You can access the list of networks working with DPoS at Cryptoslate.
Since hundreds of people can vote for a single witness in the DPoS governance system, reducing the number of nodes is possible. While the number of potential validators is close to a hundred, the top 20 witness produces blocks on Hive. In EOS, this number is 21. Such a setting allows users to transact on the blockchain at near zero cost.
Of course, transaction fees can rise independently of the consensus algorithm. DPoS networks can also become expensive when the coin price grows excessively, or the demand for the blockchain increases exponentially. Using sidechains that leverage the security of the mainnet can solve this potential problem.
Conclusion
DPoS networks seem suitable for social media and play-to-earn games. At least, daily life practice has resulted in such a direction.
We see that EVM-based networks, especially Ethereum, are more dominant on the DEFI side.
In the case of Hive, getting rid of ninja-mined tokens and the creativity of community members also affected the results.
Thank you for reading.
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