What is an application-specific blockchain (AppChain)?

• AppChains, or blockchains for specific uses, are made to fit the special needs of a certain app or business.

• Unlike blockchains that are for many uses, AppChains are made to work best for specific tasks. They try to process things faster, have less traffic, and lower transaction fees.

• AppChains present a nimble and targeted approach, built precisely for the needs of the protocol they are built for, aiming for more efficient processing, reduced congestion, and lower transaction costs.

An AppChain, short for "application-specific blockchain," is a tailored solution specifically designed to meet unique task requirements of a decentralized application or web3 protocol.

Unlike multi-purpose blockchains that strive to be a one-size-fits-all solution, AppChains can be finely tuned to the specific performance, security, and governance needs of an application.

This specialization helps with faster processing, less network traffic, and lower transaction fees. This makes AppChains a good choice for apps that need to handle a lot of data quickly, be very secure, or have special features.

AppChains function by creating their customized blockchain environments, tailored for specific applications. They operate independently, reducing the risk of cascading failures from other systems. This independence also allows for tailored designs to meet specific application needs, leading to increased efficiency.

Dedicated resources also mean faster transaction speeds and reduced bottlenecks. Without the competition for block space, AppChains may potentially avoid gas fee spikes. As the application grows, dedicated resources can handle more users and transactions.

AppChains give control to different systems. This makes sure apps and systems don't have big problems if the main blockchain fails. Most systems work better on their own. This lets them run independently without the limits of a bigger system. This narrow focus allows developers to eliminate common challenges faced on multi-app platforms, making it easier to create new things within certain rules.

AppChains differ from other types of blockchains in several ways.

Unlike monolithic chains, which are designed to handle a wide range of applications, AppChains are optimized for a specific function. This aims to make them more efficient and less congested than general chains.

Compared to modular chains, which are made up of interchangeable parts, AppChains are built for efficiency around specific tasks.

Finally, unlike Layer-2 chains, which are built on top of existing blockchains to improve scalability, AppChains can operate independently.

Several AppChains have emerged in recent years. For example, Osmosis is an AppChain that strives to provide a high-performance, customizable environment for DeFi applications, and Litentry is another AppChain that focuses on decentralized identity solutions.

These AppChains illustrate the diverse range of applications that can benefit from the specialized environments provided by AppChains.