Appchains: Reinventing Wheel For Enterprise Blockchain Adoption

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Let’s imagine there are two scenarios. In scenario  (i) You have 1 room with 10 people who are doing different things as an occupant  Vs. In Scenario (ii) You have 5 people in the same room doing different things.  

Now, judging by the dynamics of flexibility, the second scenario is undoubtedly better but not perfect. Why? Because 1 room with 5 different people means 5 different visions, approaches, cultural biases and preferences. So, though 5 is better  than 10 while sharing the same room, it is still not an ideal situation.

The above example vividly summarizes private blockchains, which  are great over public blockchains but they are not the best for hosting specific use-cases oriented applications. Even the  reports   have reiterated that if applications need complete flexibility in their operations, they will have a tough time hosting on top of private blockchains. So, what’s the way out since we are looking at a 10% GDP moving to blockchains by 2030.

Enter: AppChains

What are Appchains?

Appchains are specific blockchains built on top of an existing L1s that give the same degree of security but with a trade-off of flexibility in governance, which is not present in private blockchains. That’s why they have allowed suites of new applications to be developed and hosted on top of the blockchains. Thereby,ensuring that enterprises can enjoy security and transparency of blockchains without compromising their flexibility. A win-win formula for the next financial revolution in the enterprise sector.

How Do They Work?

App chains are lightning fast because they do not store all the data on the main chain but post minimal information for validation. Hence, they inherit the security of the main chain and while doing so, the main chain validators need to lock the appchain native token, which increases the economic feasibility of the project. Developers have the discretion to do on-chain voting for governance using the appchain native tokens to keep applications fully functional and as per the community requirements without having to get validation from the main chain DAOs. Thus, they enjoy true autonomy without compromising technological evolution as the L1’s security improves over time.

How To Identify That Your Business Needs An Appchains?

Ecosystem is Diverse

While hosting on blockchains like Cosmos and Polkadot, you will have to share space with numerous other projects which are bidding for the parachains. Now, the problem here is that since both these blockchains onboard different applications, there’s very high competition for the storage. To ensure a very efficient user interaction with the ecosystem without the project’s own baked governance mechanism, launching an appchain is the best way forward. That’s why PolkaDex, PHala and Nodle hosted on top of the blockchains as appchains.

Web 2 Experience

Some applications should have a Web 2 performance in a Web 3 world. As it is said, when you are targeting 10% GDP on blockchains, it shouldn’t be only nerds active on that layer. With appchains, you simply dodge the high gas bullet existing on top of traditional blockchains L1’s and L2’s. Web 2 games have so far been super successful despite not having an economic model because they are blazing fast and cost negligible. Web 3 games have crippled due to high gas costs on general compute traditional chains. However, when appchains come into the picture, they provide the same experience of UI/UX like a Web 2 game but a trade-off of owning everything in the game by the users and not by the protocol.

That’s the trade-off the gaming ecosystem might look forward to expanding while using the Web 3 as a hosting layer. Appchains could be a big addition for this requirement. Axie Infinity and Sorare have already suffered using side chains and they are perfect case studies for upcoming games to evolve as the new bull market gears up for 2024.

Building a Sustainable Community

The 10% GDP on blockchains is possible when participants of the ecosystem truly participate in the governance model and feel like an intrinsic part of the system. Right now, the traditional L1 and L2 systems are heavily controlled by the validators instead of the community. With the help of the appchains, the economic benefits of the ecosystem stays in the ecosystem and rewards the users. BAYC is a perfect example where Yuga LABS has simply turned the tables by rewarding the entire community of the BAYC. As a result, BAYC became a go-getter in the Web 3 space transforming dynamics of the Web 3 gaming and NFT projects. 


When we are thinking of blockchains, a modular approach to solving problems is welcomed instead of a monolithic approach. Appchains have paved the way where applications can adjust as per their changing dynamics and evolve under the influence of blockchains in the near future. In the end, transparency and security at the cost of freedom and flexibility will not be something that enterprises will be happy about and appchains can usher in this era by truly redefining a new paradigm in blockchain adoption.

Here’s where VE3 can help by being at the forefront of this transformative shift in blockchain adoption. With our innovative solutions and blockchain expertise, we can empower businesses to seamlessly integrate Appchains into their blockchain ecosystems, providing the tools and guidance necessary to optimize transparency, security, and adaptability. With our support businesses can confidently embrace the future of blockchain technology and harness its full potential for sustainable growth and innovation. To know more explore our innovative digital solutions or contact us directly.