Why Not Appchain

In contrast to the smart contract chain, where all applications run on a shared blockchain, the appchain model dedicates a separate blockchain to each decentralized application (dApp). This concept offers isolation and customizability for applications but comes with significant challenges that make it impractical for most Web3 projects.

The Concept of Appchains

An appchain provides a self-contained blockchain environment for a single application. Each appchain operates independently, giving developers full control over the blockchain's governance, consensus mechanism, and economic model. While this independence can be beneficial, it also introduces substantial complexities.

The Challenges of Appchains

  1. High Maintenance Costs
    Bootstrapping and maintaining an appchain is a resource-intensive process. Establishing a standalone blockchain requires:

    • Technical Expertise: Developing and launching a blockchain infrastructure demands significant technical knowledge.
    • Infrastructure Management: Continuous updates, security monitoring, and optimizations are necessary to keep the chain operational.

  2. Validator and Staking Requirements
    A blockchain’s success depends on attracting a robust network of validators and sufficient staking to secure the chain. However:

    • Resource Barriers: Most dApps lack the resources to incentivize and sustain a validator network.
    • Difficulty in Bootstrapping: Convincing validators to join a new chain, especially one with uncertain prospects, is a significant challenge.
    • Sustainability Issues: Even if a chain successfully launches, consistently rewarding validators and maintaining network security over time can be prohibitively expensive.

  3. Economic Viability
    Running an appchain requires a self-sustaining economic model. Many projects fail to generate enough value or transaction volume to justify the costs of maintaining a dedicated blockchain. This leads to reliance on external funding, which is often unsustainable in the long term.

Example: Axie Infinity

Axie Infinity is a notable example of an appchain. It successfully launched its own blockchain to support its ecosystem. However, the project also highlights the challenges of the appchain model, including the need for significant upfront investment, a dedicated validator network, and ongoing rewards to maintain network security. While Axie Infinity has demonstrated the potential of appchains, its success is not easily replicable for most Web3 projects.

Why Appchains Are Not the Ideal Solution

For the majority of Web3 applications, appchains are not a viable solution due to their:

  • High Entry Barriers: The resources needed to launch and maintain an appchain are beyond the reach of most projects.
  • Sustainability Challenges: Building a long-term validator incentive system is difficult and risky.
  • Lack of Scalability for Ecosystems: Managing many isolated chains introduces fragmentation and interoperability issues.

Verisense’s Alternative

Recognizing these limitations, Verisense introduces the Light App model. By enabling applications to run independently within dedicated environments (nucleus networks) on a shared blockchain, Verisense offers:

  • Lower Costs: Applications can operate without the overhead of maintaining a standalone blockchain.
  • Enhanced Security: The shared PoS blockchain secures all light apps without requiring separate validator networks.
  • Scalability: Applications can focus on growth and functionality without the complexities of managing their own chain.

This approach bridges the gap between the benefits of appchains and the practicality of shared blockchain systems, providing a more accessible and efficient solution for Web3 projects.