In the past few years, blockchains have undergone a dramatic transformation from their origins as simple ledgers for digital currency transactions to sophisticated platforms supporting a myriad of consumer applications. In particular, the emergence of smart contracts, first introduced on Ethereum in 2015, has catalyzed a broad spectrum of on-chain activities that extend far beyond peer-to-peer transactions. This report delves into the evolution of consumer applications on blockchains, highlighting the critical factors driving their development and adoption.

First, we take a look at the pioneering role of stablecoins in tokenizing financial value on the blockchain, which lay the foundation for some of the earliest on-chain consumer apps to bring novel, tangible …