Appchains: The Complete Guide to Application-Specific Blockchains

Appchains Give Developers More Flexibility to Develop dApps 

An application-specific blockchain, or appchain, is a blockchain designed for one decentralized application (dApp) instead of multiple dApps. This gives developers significantly more flexibility regarding design, governance, and tokenomics. 

Appchains vs. L1s and L2s 

Layer-1, or L1 blockchains, like Bitcoin, Ethereum, and Solana, are large blockchains that host thousands of decentralized applications. Layer-1 blockchains generally have high security and scalability (though scalability varies from chain to chain). However, dApp developers must follow the rules of that particular blockchain when developing a dApp and may need a higher degree of flexibility regarding governance or tokenomics. 

Layer-2, or L2 blockchains, are built on top of existing Layer-1 blockchains. L2 blockchains have mainly been built on top of the Etheruem blockchain. They inherit the core security of the L1 blockchain and process transactions on that blockchain. However, L2 blockchains are generally faster and have significantly lower transaction fees since they batch transactions using optimistic or ZK rollup protocols. This reduces gas fees and increases transactions per second (TPS). 

Popular examples of L2 blockchains include Polygon, Optimism, Arbitrium, BASE, and Starknet. 

L3 Blockchains as Appchains 

Layer-3, or L3 blockchains are chains built on top of L2 blockchains. Generally, these are considered appchains as they typically host only one decentralized application. L3 blockchains can be customized for the needs of a specific dApp and may be faster and even more gas-efficient than L2s. 

Appchains vs. Sidechains

Sidechains are similar to Layer-2 blockchains, but they don’t inherit the same security guarantees as the underlying Layer-1 blockchain and are instead connected to the L1 via a two-way bridge. Unlike appchains, sidechains generally host multiple decentralized applications, so they aren’t as customizable as appchains. 

Appchains vs. Parachains 

Another type of chain that is similar to an appchain, but not quite the same, is a parachain. Parachains are specific to the popular Polkadot network. Polkadot is a network of L1 chains connected to a Layer 0 blockchain called the Relay Chain that validates transactions from parachains. Groups of validators are responsible for specific Paramahansa. However, the Polkadot network only has a capacity of 100 parachains, which can limit the scope and scale of dApp development on the network. Parachains are obtained through a bidding process and are leased to developers for two years, which can also be limiting. 

Cosmos Zones as Appchains 

Cosmos is a popular blockchain network that operates as a “blockchain of blockchains.” It consists of multiple independent blockchains referred to as “zones,” each of which can host one or more dApps. Since they are interconnected via a hub-and-spoke model and use Cosmos’s Interblockchain Communication (IBC) protocol, each zone can transfer tokens and data to other zones. Each zone can have its own token, which is based on Cosmos’s native ATOM token, which is used for transaction fees, as well as staking and rewards. 

In addition, the Cosmos SDK permits developers to build their own parallel chains for if they desire higher throughput or other chain-specific characteristics. Cosmos, like other chains, is a proof-of-stake network, and the current top 100 ATOM holders act as validators. 

Avalanche Subnets as Appchains 

Avalanche is an integrated network of blockchains that consists of three separate, yet inerconnected chains: 

• The Contract Chain (c-chain): This executes smart contracts. 
• The exchange chain (x-chain) This handles asset exchanges.
• The Platform chain (p-chain): This contains the validators and subnets.

Avalanche Subnets are appchains that devs can utilize for their projects by staking Avalanche’s native token, $AVAX. Unlike other appchains, subnets can be either L2 or L1 blockchains, giving devs more flexibility than other appchains. 

Polygon Supernets as Appchains

Polygon is a popular Layer-2 blockchain. However, it’s technically a “sidechain” rather than a true Layer-2. The core difference between sidechains and L2s is that L2s inherit the security of the main Ethereum itself, while sidechains rely on their own security.

Polygon itself and Polygon Supernets, which act as individual appchains, however, still use Ethereum to process transactions. Supernet developers can utilize a Polygon validator that uses Polygon’s native MATIC token for staking and have the choice of utilizing proof-of-stake or proof-of-authority as a consensus method., 

Supernet developers can also take advantage of Polygon Edge, a blockchain-building platform that gives developers various building tools and pre-set code. 

Appchain Pros and Cons

Appchains have a variety of pros and cons for dApp developers when compared to developing directly on L1 blockchains, including: 

• Pros: 
  • Increased performance
  • Customizability 
  • Increased ownership 
  • No competition for storage space or computation 
  • Easier to update
  • Lower gas fees  
• Cons: 
  • Fewer developer resources
  • Smaller developer ecosystems
  • Users may be less likely to utilize a dApp on its own chain
  • Generally must share security with L1 blockchain 

Supra Containers as an Alternative to Appchains

As we can see, while traditional appchains have certain advantages for dApp developers, they also have significant limitations. Fortunately, Supra has developed one of the few viable alternative to appchains– Supra Containers. 

Supra Containers give builders dedicated blockspace on Supra’s L1, with the freedom to build their own ecosystems with complete control, high performance, flexible scalability, and no blockspace congestion. Better value capture and control than appchains, minus the infra costs. Containers also inherit Supra’s shared security, performance, and access to vertically integrated services.

Specific benefits of Supra Containers include: 

• Ability to Use Any Gas Token: Developers can use any token as the native gas token in their Container, such as a stablecoin or the project’s native token, just like an appchain.
• Customizable Fees: dApp developers can can adjust transaction gas fees in their Container like a local fee market. Gas fees can be fixed for any conceivable action, and transactions can even be gasless. 
• Complete Control: dApp developers get complete governance command over their blockspace, allowing them to control smart contracts, assets, and access-criteria within their Container.
• No Validators Required (and Fewer Fees): Devs who want to build their own appchain or L2, need to pay data availability fees, sequencer fees, run your own validators, and get infrastructure integrations — each of which comes with high costs. Supra Containers eliminate these costs by offering dedicated blockspace on Supra’s Layer-1 with access to native oracle services.
• No Network Congestion: Network congestion can cause unexpected gas fee spikes on public blockchains, which can disrupt user experiences and app performance. Containers give dApps dedicated blockspace on Supra’s L1, eliminating uncertainty and ensuring consistent gas and performance even if gas fees rise in the network.

To learn more about Supra Containers, click here to read our whitepaper or watch an in-depth video that explains the core elements of Containers and their benefits for next-gen dApp developers who want lower fees, higher speed, and, most importantly, the flexibility and independence to do things their way.