Appchains, which stands for ‘application-specific blockchain,’ are customized solution made to fit the specific needs of a decentralized app or web3 protocol.
Bitcoin started it all, but Ethereum aimed higher — it wanted to be the go-to platform for all things DeFi and tokenization. Unfortunately, when usage skyrocketed in 2017, transaction fees went through the roof, showing that Ethereum just couldn’t handle the demand.
This limitation led to the rise of many Layer 1 blockchains known as ‘Ethereum-killers’ such as Solana, which try to surpass Ethereum by providing quicker transaction speeds and confirmations while remaining versatile. However, the issue is that the increase in these platforms tends to contribute to the already messy situation of fragmented blockchain ecosystems.
This leads us to the emergence of appchains, which tackle the core problem of staying relevant in the fast-evolving world of crypto.
Learn more about Appchains
General-purpose chains struggle to keep up in this fast-changing environment due to their wide-ranging focus. In contrast, appchains provide a more agile and specialized solution, tailored specifically to the requirements of the protocols they support. Appchains cleverly leverage the vastness and familiarity of traditional systems while remaining adaptable and independent enough to integrate the latest technologies.
Unlike general-purpose blockchains that aim to serve everyone, appchains can be customized to meet the exact performance, security, and governance requirements of a specific application. This tailored approach leads to better efficiency, less congestion, and lower transaction fees, making appchains perfect for apps that need high speed, security, or special features. By concentrating on particular applications or use cases, appchains can grow and adapt sustainably, keeping up with the constantly evolving world of blockchain technology and its uses.
Appchains vs. Other Blockchain Solutions
Check out these main differences between appchains and typical blockchain solutions.
| Appchains | Layer 1 Blockchains | Layer 2 Blockchains | Sidechains | |
| Definition | Tailored blockchains designed for particular uses can operate as Layer 1, Layer 2, or sidechains. | Core blockchains that act as the primary network for transactions. | Layer 1 blockchains are enhanced to boost scalability and efficiency. | Standalone blockchains that operate alongside a primary blockchain (Layer 1). |
| Architecture | Varies depending on whether they are Layer 1, 2, 3, or sidechains. | Independent and self-contained networks with their own consensus mechanisms. | Tend to rely on Layer 1 for security. | Operate independently but are pegged to a Layer 1 blockchain. |
| Consensus Mechanism | Depends on the underlying layer it’s built on or if it’s independent. | Have their own consensus mechanisms (e.g., PoW, PoS). | Usually leverage the security and consensus mechanism of the underlying Layer 1 chain. | May have different consensus mechanisms from the main chain. |
| Scalability | Highly scalable if designed efficiently, particularly for specific applications. | Limited scalability due to inherent limitations like block size and time. | High scalability due to off-chain processing capabilities. | Varies, but generally more scalable than Layer 1. |
| Interoperability | Can be designed for high interoperability with various layers and chains. | Limited, usually operates within its own ecosystem. | High, as they are designed to work closely with Layer 1 chains. | Can be high if designed for cross-chain compatibility. |
| Use Cases | Specific to the application they are designed for (e.g., gaming, trading). | General purposes like cryptocurrency transactions, smart contracts. | General purpose, with faster and cheaper transactions. | Niche use cases, specific to the design of the sidechain. |
| Examples | Immutable zkEVM, dYdX Chain | Bitcoin, Ethereum | Arbitrum, Optimism, zkSync Era | Ronin Network, Gnosis Chain |
Conclusion
The rise of appchains is a big deal in the blockchain world, providing customized and efficient solutions in a game-changing industry. By zeroing in on particular applications and use cases, appchains foster innovation, scalability, and sustainability. They make sure the blockchain ecosystem stays adaptable to the varied needs of users and developers.
With the rise of web3, DeFi, and digital assets, appchains are set to be the go-to choice for developers. Whether it’s NFT games or CBDCs, these specialized blockchains can manage everything.