As Ethereum approaches its tenth anniversary on July 30, 2025, the anticipated revolution in decentralized applications (DApps) remains largely unrealized. Despite its groundbreaking launch as the first smart contract platform, Ethereum has not yet spawned the Web3 giants akin to Amazon or Facebook that early visionaries like Gavin Wood and Vitalik Buterin once imagined.
The Elusive Dream of Web3
Back in 2015, Ethereum’s inception heralded a new era of decentralized computing. It promised a system where users would own their data, free from the whims of centralized authorities. But nearly a decade later, the utopian vision of decentralized counterparts to today’s tech behemoths remains a mirage. Industry insiders like Joe Lubin of ConsenSys once foresaw Ethereum’s pervasive influence, while libertarian journalist Jim Epstein predicted it would rival services from Google to eBay. Yet, these aspirations seem distant as the platform grapples with scaling challenges.
Challenges of Scale and Economics
For Ethereum to host a decentralized eBay, the technical demands would be staggering—every listing update, auction, and transaction would require an on-chain record. This would multiply transaction loads exponentially, far beyond Ethereum’s current capacity of 14 transactions per second. Compare that to Solana’s 1000+ transactions per second, and the discrepancy becomes glaring. As explored in our recent coverage of Ethereum’s proposed 6-second block times, efforts are underway to address these speed and cost issues.
Moreover, the economics of decentralized applications remain a sticking point. Most DApps require massive scale to be financially viable, yet layer 2 solutions fragment user bases, thwarting the goal of a cohesive global network. Even NFT marketplaces like OpenSea, despite their dominance, struggle with profitability. If selling digital art to crypto enthusiasts doesn’t cut it, how can we expect lower-value marketplaces to thrive?
The Road Ahead: New Technological Frontiers
Yet, there’s a glimmer of hope. The industry is slowly shedding the false dichotomy between security and scalability. With advancements in zero-knowledge proofs, networks can process transactions more efficiently, allowing users to prove transaction validity locally. This innovation promises to reduce costs and enable blockchains to support mainstream applications. For a deeper dive into potential solutions, see our coverage of Ethereum’s proposal to halve slot times.
As Ethereum and the broader blockchain community reflect on the past decade, there’s cautious optimism for the future. The dream of a decentralized web might be moving at a snail’s pace, but technological strides could soon pave the way for its realization. Whether Ethereum will finally live up to its potential remains an open question, but one thing’s certain: the next decade promises to be just as intriguing as the last.
Source
This article is based on: Why Are There No Big DApps on Ethereum?
Further Reading
Deepen your understanding with these related articles:
- Major Validators Join Testnet to Tackle Ethereum’s Overlooked Bottleneck
- ZKsync’s Airbender zkVM Proves Ethereum Blocks in 35 Seconds
- Private credit powers $24B tokenization market, Ethereum still dominates — RedStone
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
