What is an Appchain? Exploring the Depths of Appchains

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Learn more about Appchains and explore the depths of Appchains.


An application-specific blockchain or application chain is a blockchain that is designed to work only with a specific application. AppChain enhances the existing layer 1 blockchain structure and gives developers more freedom. In addition to customization, AppChain provides ownership and performance improvements to developers. Application chains also improve the performance of the applications they serve because other applications don't compete for computing or storage.
 

App Chain vs. L1


Application chains differ from layer 1 blockchains because they work for specific applications. Although L1 blockchains and application chains are different, application chains always use validators from the L1 blockchain on which the application is based. There are advantages and disadvantages to using application chains on public layer 1 blockchains. 
 

Appchain vs. L2


Layer 2 (L2) blockchains are a scalable solution to layer 1 blockchains such as Ethereum, where some of the tasks of the main blockchain are performed by another blockchain. For example, L2s such as Optimism and Arbitrum execute transactions and provide fraud evidence through optimistic aggregation to continue using the Ethereum payment layer. Application chaining differs from L2 because it only works for a single application. L2 can run many different applications simultaneously and provides a versatile solution for scaling the L1 blockchain on which they run.
 

App Chain vs. Side Chain


Sidechains are blockchains that are compatible with layer 1 blockchains but do not use L1 blockchains for security reasons. App chains and sidechains are different because app chains are application-specific. This means that AppChains operates in a single specific application. On the other hand, horizontal movements perform all kinds of transactions and assets exchange. Polygon is an Ethereum sidechain that offers an application-chaining solution called Polygon Edge.
 

App Chain vs. Subgraph


Subgraphs are part of the Graph protocol that indexes and queries blockchain data. Subgraphs determine what data is indexed by the graph and how it is stored. Subgraph is an open API that makes data available to everyone. A subgraph consists of three parts.
 
Manifest - Describes and supplies data about the subgraph’s smart contract.
Schema - defines the data stored in the subgraph.
Mapper - AssemblyScript code that processes event data and updates the blockchain.
 
App Channels and The Graph can be used to build apps, AppChain differs from Subchart because it provides the ability for developers to create their own blockchain. Subgraphs simply help to better describe and organize blockchain data. 
 

Appchain Benefits and Tradeoffs


Using an Appchain offers unique advantages over using L1, Layer 2, or side chains. As mentioned above, Appchains offers developers customization, performance benefits, and increased ownership while leveraging the security of the underlying blockchain. Developing an application directly on a public blockchain means that the application must compete with other applications in terms of computation and storage. 
 
This can reduce application performance and lengthen the process of updating or modifying applications because developers have no control over the consensus protocol. However, evolution in L1 also has advantages. Developers, especially new developers, have more resources and tools available to develop applications in the L1 channel.
 
Also, L1 has more support, and L1 has a larger developer ecosystem. , it may be easier to port the code to compatible blockchains. With the advent of L2, application developers no longer have to fundamentally refactor their codebases to run on Layer 2 solutions that offer lower gas fees and higher throughput without sacrificing security. Gain access to more scalable infrastructure.
 

How Does Application Chains Work?


The app chain functions similarly to the main blockchain, except that it is application-specific.  However, application chains behave slightly differently depending on the blockchain used. AppChain uses its own tokens as stakes for validators or as ownership for anything within the app. 
 
In-app tokens can be used as internal currency, in-app ownership tokens, and even voting systems. App chains use validators on the main blockchain that select validation for a particular app chain. App Chain has its own token, and validators use App Chain tokens. This way, Application Chains do not compete with other applications in terms of transaction throughput.
 

Which Blockchains Use Application Chains?


Some blockchains offer developers the ability to create application chains. In this section, we will look at some of the common blockchain features for developing application chains.
 
Polka dot Parachain 
Space Zone 
Avalanche Subnet 
polygon Supernet 
 

1. Polka dot Parachain


Polkadot is a network of EVM-enabled L1 blockchains called parachains, all connected to a central blockchain called a relay chain. A relay chain is a layer 0 blockchain that validates all parachain transactions. Relay Chain uses a proof-of-stake consensus mechanism where validators stake Polkadot’s native token, DOT. 
 
Each group of validators is responsible for a particular parachain and is named and supported by a relay chain and an assembler that acts as a node for that particular parachain. Parachains can be used to manage specific applications and projects. Presently, Polkadot will be able to serve 100 parachains. The parachain will then be leased to the developer for two years. Parachain also supports the use of native tokens. 
 

Examples of Polkadot Parachain Projects

Acala – A DeFi hub for the Polkadot network
Litentry - A cross-chain identity aggregator
 

Cosmos Zones

Cosmos Zones operate within the Cosmos network using a hub-and-spoke model. Each application chain, or “zone,” is connected to the Cosmos Hub, which is the center of the Cosmos network. This establishes the interconnection of all areas of the Cosmos network. All zones are connected through Cosmos Hub so they can send data and tokens to each other. Each area has its own tokens, but the atoms are cosmos-native tokens. Atoms are used for training, rewards, and transaction costs. Anyone can create a cosmos area for a specific project. 
 
The COSMOS area has many advantages for developers, in addition to the normal advantages provided in the creation of applications.  Tendermint Core improves transaction speed and finality. Inter-blockchain communication (IBC) allows data to be transferred between zones. If higher throughput is required, developers can also use the Cosmos SDK to create parallel chains of applications. Rather than validators being called faucets like Polkadot, Cosmos validators are included in the top 100 of his ATOM holders. This makes it more difficult to find or become a Cosmos validator.
 

Samples of the Cosmo Zone Project


dYdX - a large decentralized exchange
Osmosis - Cosmos' largest DEX that lets people trade, earn, and build
 

Avalanche Subnet


The Avalanche ecosystem consists of three blockchains: a contract chain (C-chain) that executes smart contracts, an exchange chain (X-chain) that manages the exchange of assets, and a platform containing validators (P-chain). and subchains. A subnet is an L1 or L2 blockchain. The Avalanche consensus protocol uses a snowballing algorithm in which validators continually accept the majority opinion on a subset. 
 
Ballidators until the whole group reaches a consensus. This means that the verification process becomes high-speed, efficient, and scalable, and the avalanche can support millions of barters at the same time. Avalanche's advantages over other blockchains include scalability, finality, and speed. Avalanche has no limit to the number of subnets you can create. The Snowball algorithm processes transactions in 1-2 seconds. Avalanche has a high throughput of over 4,500 tps.
 

Example of Avalanche Subnet Project


DeFi Kingdoms Crystalvale - a multi-chain DeFi game where you can make money.
Crabada's Swimmer - a game that uses a unique royalty coverage model.
 

Polygon Supernet 


Polygon Supernets uses Ethereum as its L1 blockchain and Polygon Edge, Polygon's blockchain creation platform that provides developers with the tools they need to create their own EVM-compatible blockchains. Supernet developers have the option of acquiring a Polygon validator that uses Polygon's native staking token, MATIC, and can choose to use a proof-of-stake or proof-of-authority model. 
 
Each set of validator nodes serves only a single supernet. Developers also have third-party tools and services to help develop applications using Supernet. Supernets allow developers to connect their application chains to other supernets and use any scalable architecture. In short, Supernet leverages Polygon Edge to enable developers to customize their application chains.
 

Samples of a Polygonal Supernet Project


Vorz - a tokenized Metaverse social media app similar to TikTok.
Boomland - a Web3 game developed by BoomBit.

How to Choose the Best App Chain


The best application channel for your project depends on your priorities. Each app chain offers the ability to customize your app's economics and governance structure but varies widely in terms of performance, tokenomics, consensus algorithms, and availability. The first thing to consider is the application chain process. For example, on a blockchain that allows a limited number of app chains, you'll be competing for a niche with other projects.
 
Learn the process of building an app chain and compare it to the process of building an app on a public blockchain using Alchemy, and decide which you prefer. Another important aspect to consider is the blockchain consensus algorithm you choose for your application chain. Some blockchains offer a lot more validators per application chain than others. If security is important to you as a developer, be sure to check how app chain transactions are verified.

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