The Rise of AppChain: From Origin to Future Outlook

The development of AppChain is the result of multiple factors working together, including the maturity of infrastructure, intensified competition for block space, and the increasing demand for customized token economic models. Although dApps and AppChains have similarities in their business forms, each has its own advantages and disadvantages. The core of AppChain development lies in building its own application barriers, fully leveraging low-cost transactions to promote high-frequency on-chain transactions, thereby gaining traffic and accumulating users.

The Origin of AppChain

The concept of AppChain can be traced back to the Cosmos project. Cosmos is known for its modular and pluggable design philosophy, which separates the virtual machine from the consensus engine, allowing developers to freely choose the framework for building the virtual machine and customize the key parameters of the consensus engine. This design enables various applications to exist in the form of independent chains, showcasing unique advantages in flexibility and sovereignty.

However, the overall growth trend of the Cosmos AppChain has not continued, and the number of new AppChains has not significantly increased. This is mainly because Cosmos grants too much sovereignty to AppChains, and before the introduction of the ICS proposal in Atom 2.0, the security of AppChains and the costs of launching and maintaining them were relatively high.

Catalyst of the New AppChain

The rise of new AppChains is mainly attributed to the following factors:

• Popularization of the modular blockchain concept
• The maturity and widespread validation of the general-purpose Rollup Layer2
• Development of interoperability and liquidity aggregation layer
• The rise and improvement of RaaS platforms

These factors have lowered the entry barrier for AppChain, providing new business implementation paths for dApps. At the same time, the current application dilemmas in the primary and secondary markets are also intensifying dApps' exploration for breakthroughs.

Advantages and Disadvantages of the New AppChain

Advantages:

• Modular Design
• Optimize performance
• Enhanced value capture

Disadvantage:

• Liquidity Fragmentation
• Interoperability and composability issues
• Increased complexity

The Construction and Development Roadmap of AppChain's Moat

The moat of the AppChain is always its own application business. The key to success lies in deeply exploring market pain points and building product applications with PMF. The AppChain should focus on development as the main priority, with promotion as a supplement, steadily forming its core functions before developing new features and product lines.

Token Gameplay Design Concepts

When building the token economic model for the AppChain, a strategy of natural development ( Organic ) should be adopted. The growth in the number of token holders should align with the expansion of the user base to ensure the healthy development of the token economy. It is important to avoid overly aggressive token distribution strategies and instead focus on achieving a model of sustainable growth.

Overview of Well-Known AppChain Projects

• Cyber: A Restaked Ethereum Layer 2 network focusing on social scenarios.
• XAI: A game three-layer network compatible with EVM developed by Offchain Labs.
• MyShell: An innovative AI Agent creator platform
• GM Network: Committed to becoming an innovator in the consumer AIoT field.

Investment Analysis Framework

• Industry Understanding and Market Positioning
• Target customer group
• Product delivery and iteration speed
• User Retention and Business Model

Outlook

We hold an optimistic expectation for the development prospects of AppChain. In the future, AppChain will not only provide users with a rich interactive experience, but also drive innovation and development in related industries through its unique technological advantages.