RabbitHole wants to encourage users to use decentralized applications (DApps).
DApps, Smart Contracts, and RabbitHole. A decentralized application (DApp) is software that runs on multiple computers within a network. These applications interact to achieve specific tasks (for example, an escrow agreement). The backend code of a DApp runs on a decentralized peer-to-peer (P2P) network.
It’s easy to assume that a DApp is similar to a smart contract. Both methods digitally run the agreements and ongoing performance of a contract. DApps are websites that use blockchain technology, whereas smart contracts allow the app to connect to the desired blockchain. To achieve this, DApps use specific components like Metamask or the Web3 javascript library. You’ll also need traditional web technology to render a page (HTML and Javascript). They utilize smart contracts to connect to the blockchain.
To help users find and use Dapps, RabbitHole will launch a platform that organizes the Dapps according to their function and use. The platform divides existing decentralized applications into different classes to help users understand the functions of each application.
RabbitHole has not launched the proposal yet, but it will publish a beta version of the system so that users can familiarize themselves with it. RabbitHole’s goal is to fight some of the deficiencies in the current cryptocurrency ecosystem.
One of those ecosystem weaknesses is that novice users of cryptocurrencies don’t use the new DApps due to the “noise” existing in the ecosystem. RabbitHole emphasizes that new users find it difficult to understand what decentralized applications are for. If new users are not using decentralized applications, there will continue to be a bottleneck in the current financial system, which is controlled by a few.
Another gap that the proposal tries to fix is the lack of incentives to find new networks and test their functionality. The announcement explains that they want to increase user interaction with new protocols, smart contracts, and decentralized applications.
It is also a problem that cryptocurrencies lack the fun factor. Based on this, RabbitHole introduced gamification tricks (video game-like elements) to its platform. In this system, users gain experience, level up, and earn rewards for interacting with different protocols of blockchain-based technologies.
The search for true decentralization
One of the main reasons for the RabbitHole proposal is that the cryptocurrency ecosystem is trying to figure out how to decentralize efficiently, as well as seeking to turn speculators into users.
After analyzing the market, they observed a surge of projects that launched tokens for their ecosystem. But even though projects go from an opportunity to buy an asset to participation in governance, the problem remains that few users participate in such governance.