What are Appchains?

Appchain, also known as application-specific blockchain or simply appchain, is a blockchain that has been developed specifically for the operation of a single application.

When developers create decentralized apps, using such technologies allows them more leeway in the design of ecosystems, governance structures, and consensus methods for those applications.

How Do Appchains Function?

Appchains function very similarly to blockchains, however, they are built on top of existing blockchains rather than within them. The primary distinction is that they are designed for use with a certain app.

First-level (L1) blockchains are what appchains, which are concerned with security, depend on. Because they do not compete with L1 applications for processing power and storage space, such systems have a high degree of customizability and have the potential to significantly improve performance. These kinds of solutions typically include a utility token. In addition to serving as the app’s internal currency, it is also put to use in the betting and voting processes.

Validators that are part of the main network provide support for appchains (if they agree to send resources to a specific application). When compared to L1, second-layer (L2) solutions, and side chains, using a novel strategy when designing apps provides a number of advantages that are worth considering. Because they are dependent on the primary blockchain, appchains allow for increased system performance and customisation without compromising data safety. This is made possible by the fact that appchains may communicate directly with the blockchain.

Using L1 directly to create decentralized applications (dapps) puts developers in direct competition with one another for limited computational resources. Because of this, there is a high risk that the platform’s performance may suffer, and the process of upgrading the platform could take a long time because the developers lack control over the consensus procedure.

Due to the competition between different decentralized applications (dapps) on the same network, it is possible that just one popular app will need more resources than it should. This results in a rise in transaction fees (such as in the context of the launch of XEN Crypto) as well as a delay in the processing of incoming transaction requests.

The user experience can be improved thanks to the cheap and predictable transaction costs that appchains provide.

As the use of decentralized apps becomes more widespread, the demand for more sophisticated customization and optimization of a variety of criteria, such as throughput, finalization, security level, and accessibility, may emerge as a challenge for software developers (permissionless or permissioned).

Traditional companies now have the ability to explore Web3 thanks to appchains, without having to immediately make their platforms accessible to the public. For instance, organizations might first mandate that validators meet with KYC requirements, rely on a small pool of developers, and select particular services for cross-chain interaction.

How do appchains vary from sidechains in their functionality?

Sidechains require the operation of a parallel network that is bound in both directions to the primary network, however these types of solutions do not rely on the integrity of the L1 chain. Sidechains operate differently from L2 in that they do not broadcast their transactions to the primary blockchain.

Appchains are developed in response to a particular application (app-specific). On the other hand, sidechains are capable of performing any kind of operation. The fact that there is not as much decentralization makes them less secure than other options.Polygon Proof of Stake, which is a component of the ecosystem surrounding the Polygon project, is one of the most well-known sidechains. The latter comes with Polygon Edge as well, which is an open source development environment that lets you construct L2 solutions.