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FollowingWhat is an application chain?
AppChain, which stands for \"application-specific blockchain,\" is a tailor-made solution specifically designed to meet the unique mission requirements of decentralized applications or web3 protocols.
Unlike multipurpose blockchain, which strives to be a one-size-fits-all solution, application chains can be fine-tuned based on the application\'s specific performance, security and governance needs.
This specialization aims to achieve more efficient processing, reduce congestion, and reduce transaction costs, making the application chain the right choice for applications that require high throughput, security, or unique features.
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How does the application chain work?
Application chains work by creating custom blockchain environments tailored to specific applications. They operate independently, reducing the risk of cascading failures in other systems. This independence also allows for customized designs to meet specific application needs, increasing efficiency.
Dedicated resources also mean faster transaction speeds and reduced bottlenecks. Without competition for block space, the application chain might avoid soaring Gas fees. As applications grow, dedicated resources can handle more users and transactions.
Advantages of application chains
Application chains provide sovereignty over protocols, ensuring that applications and protocols do not face cascading failures in the main blockchain. Most agreements are better suited to sovereign operations, allowing them to operate independently of the constraints of the larger ecosystem. This narrow focus allows developers to eliminate common challenges faced on multi-application platforms, thereby promoting innovation within given parameters.
Application chains and other blockchains
Application chains differ from other types of blockchains in several ways.
Unlike monolithic chains that are designed to handle a wide range of applications, application chains are optimized for specific functions. This aims to make them more efficient and less congested than normal chains.
Application chains are built to improve the efficiency of specific tasks compared to modular chains composed of interchangeable parts.
Finally, unlike Layer-2 chains, which are built on top of existing blockchains to improve scalability, AppChains can run independently.
Popular application chains
Several application chains have emerged in recent years. For example, Osmosis is an AppChain dedicated to providing a high-performance, customizable environment for DeFi applications, while Litentry is another AppChain focused on decentralized identity solutions.
These application chains illustrate the various applications that can benefit from the professional environment provided by AppChains.
