Thread by @CoderstechAi

Monolithic vs. Modular Blockchain

As more and more dApps switch to app-specific blockchains, monolithic blockchains could become the "Yahoo" of blockchains

1) Here's everything U need to know about app-specific blockchains

We will discuss:

What are app-specific blockchains?

The Features

Benefits of app-specific blockchains

Drawbacks of app-specific blockchains

As a builder, should U use an app-specific blockchain?

2) Smart contracts are used to build #dApps on blockchains

However, none of the public blockchains have effectively overcome the blockchain trilemma to date:

Scalability

Security

Decentralization

3) App-specific blockchains address this issue by modifying the blockchain's underlying infrastructure

4) 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

5) Features of an app-specific blockchain ( 1)
a. The app-chain enables the dApp to have its own dedicated blockspace on the blockchain

b. As a result, unlike on public blockchains, the dApp does not have to compete with other dApps for blockspace

6) c. dApps have the ability to create their own tokens within their specific app-chain

d. It can be used by the dApp's validators for staking purposes

e. It can be used as the dApps gas token

f. It can be used for in-app voting purposes

Example: @avalancheavax's Subnets

7) g. However,dApps that might not need their own token can also use d base layer's token

h. dApps can also utilize d validators from the base layer to validate their specific App-chain

Example: $AVAX
i. dApps can choose to have their own security mechanism within the app-chain

8) h. 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

9) Benefits of App-chains:

a. 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

10) b. 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!

11) c. 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

12) Drawbacks of App-chains :
a. Fragmented Liquidity

b. Composability is limited

c. Unsecure bridging mechanisms

d. Weak security model (isolated security)

e. Much harder to deploy than a smart contract

f. Independent developer ecosystem

13) 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

14) 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

15) Choose the appropriate model for your dApp!

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

16) Teams must always assess the trade-offs and determine whether they are acceptable for them!

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