As more and more dApps switch to app-specific blockchains, monolithic blockchains could become the "Yahoo" of blockchains
Are you unsure whether to bet on monolithic or app-specific blockchains?
Here's everything you need to know about app-specific blockchains
🧵👇
Are you unsure whether to bet on monolithic or app-specific blockchains?
Here's everything you need to know about app-specific blockchains
🧵👇
In this thread we will discuss:
1. What are app-specific blockchains?
2. Features of an app-specific blockchain
3. Benefits of app-specific blockchains
4. Drawbacks of app-specific blockchains
5. As a builder, should you use an app-specific blockchain?
1. What are app-specific blockchains?
2. Features of an app-specific blockchain
3. Benefits of app-specific blockchains
4. Drawbacks of app-specific blockchains
5. As a builder, should you use an app-specific blockchain?
Before we get started...
You can find the full call notes here:
thecryptoilluminati.substack.com/p/monolithic-v…
You can find the full call notes here:
thecryptoilluminati.substack.com/p/monolithic-v…
With the introduction of smart contracts, the #Crypto market has experienced exponential growth in recent years
Blockchain is now being utilized for a wide range of activities like insurance, gaming, music, identity, art, etc.
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Blockchain is now being utilized for a wide range of activities like insurance, gaming, music, identity, art, etc.
/1
Given the growing number of users and adoption, the demand for blockchains has significantly increased
The majority of #Web3 apps currently operate in the paradigm of public blockchains like Ethereum
Smart contracts are used to build #dApps on these blockchains
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The majority of #Web3 apps currently operate in the paradigm of public blockchains like Ethereum
Smart contracts are used to build #dApps on these blockchains
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However, none of the public blockchains have effectively overcome the blockchain trilemma to date:
• Scalability
• Security
• Decentralization
App-specific blockchains address this issue by modifying the blockchain's underlying infrastructure
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• Scalability
• Security
• Decentralization
App-specific blockchains address this issue by modifying the blockchain's underlying infrastructure
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1. What are app-specific blockchains?
An app-specific blockchain (app-chain) is a blockchain that is customized specifically to operate a single application
It enables dApps to have their own blockchain instead of relying on public blockchains like #Ethereum
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An app-specific blockchain (app-chain) is a blockchain that is customized specifically to operate a single application
It enables dApps to have their own blockchain instead of relying on public blockchains like #Ethereum
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2. Features of an app-specific blockchain:
The app-chain enables the dApp to have its own dedicated blockspace on the blockchain
As a result, unlike on public blockchains, the dApp does not have to compete with other dApps for blockspace
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The app-chain enables the dApp to have its own dedicated blockspace on the blockchain
As a result, unlike on public blockchains, the dApp does not have to compete with other dApps for blockspace
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dApps have the ability to create their own tokens within their specific app-chain
It can be used by the dApp's validators for staking purposes
It can be used as the dApps gas token
It can be used for in-app voting purposes
Example: @avalancheavax's Subnets
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It can be used by the dApp's validators for staking purposes
It can be used as the dApps gas token
It can be used for in-app voting purposes
Example: @avalancheavax's Subnets
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However, dApps that might not need their own token can also use the base layer's token
dApps can also utilize the validators from the base layer to validate their specific App-chain
Example: $AVAX
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dApps can also utilize the validators from the base layer to validate their specific App-chain
Example: $AVAX
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dApps can choose to have their own security mechanism within the app-chain
Or they can also share the security provided by the base layer
Since it is more difficult to attack a large validator base, the shared security model is more secure than the isolated security model
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Or they can also share the security provided by the base layer
Since it is more difficult to attack a large validator base, the shared security model is more secure than the isolated security model
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3. Benefits of App-chains:
• Sovereignty:
A dApp cannot vote on a new feature that is required specifically for that dApp on the public blockchain
App-chains enable dApps to solve problems with their own governance without affecting any other dApps in the ecosystem
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• Sovereignty:
A dApp cannot vote on a new feature that is required specifically for that dApp on the public blockchain
App-chains enable dApps to solve problems with their own governance without affecting any other dApps in the ecosystem
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• Performance:
When a single dApp is being excessively used, it increases gas fees and latency for other dApps on the public blockchain
However, in an app-chain, a dApp does not compete with others for computation and storage
This improves the dApp's performance!
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When a single dApp is being excessively used, it increases gas fees and latency for other dApps on the public blockchain
However, in an app-chain, a dApp does not compete with others for computation and storage
This improves the dApp's performance!
/10
• Customizability:
In an app-chain, stakeholders of the dApp have complete control to modify the chain for their specific needs
App-chains also provide more flexibility
Developers can choose the programming language they prefer
Ex: @cosmos
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In an app-chain, stakeholders of the dApp have complete control to modify the chain for their specific needs
App-chains also provide more flexibility
Developers can choose the programming language they prefer
Ex: @cosmos
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App-chains are especially beneficial for institutions and established businesses that want to enter the Web 3 world with a "permissioned blockchain"
App-chains allow them to employ whitelisted validators and also to conceal all business data from the outside world
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App-chains allow them to employ whitelisted validators and also to conceal all business data from the outside world
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4. Drawbacks of App-chains:
• Fragmented Liquidity
• Composability is limited
• Unsecure bridging mechanisms
• Weak security model (isolated security)
• Much harder to deploy than a smart contract
• Independent developer ecosystem
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• Fragmented Liquidity
• Composability is limited
• Unsecure bridging mechanisms
• Weak security model (isolated security)
• Much harder to deploy than a smart contract
• Independent developer ecosystem
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5. As a builder, should you use an app-specific blockchain?
It will be determined by the specific NEEDS and FEATURES that are crucial for the dApp
The consensus model provided by the base layer of your app-chain is also a crucial factor to take into account
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It will be determined by the specific NEEDS and FEATURES that are crucial for the dApp
The consensus model provided by the base layer of your app-chain is also a crucial factor to take into account
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Some base layers do not allow independent app-chains to have their own consensus model while some allow the app-chain to choose b/w an independent consensus model and the base layer's consensus model
Choose the appropriate model for your dApp!
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Choose the appropriate model for your dApp!
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Ex:
You would be better off adopting an app-chain if you need high customizability and an independent governance system but are willing to give up the massive L1 liquidity
Teams must always assess the trade-offs and determine whether they are acceptable for them!
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You would be better off adopting an app-chain if you need high customizability and an independent governance system but are willing to give up the massive L1 liquidity
Teams must always assess the trade-offs and determine whether they are acceptable for them!
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