As a seasoned crypto investor with over a decade of experience in this rapidly evolving industry, I find myself intrigued by the ongoing debate between Andre Cronje, Hilmar Orth, and Marc Boiron regarding layer-2 (L2) appchains.
Andre Cronje, a partner at Sonic Labs, has expressed skepticism towards application chains on layer 2 (L2), stating that they may not be suitable for developers due to their perceived impracticality.
In my recent October 13th post on X, I voiced concerns over exorbitant infrastructure expenses, scattered liquidity, and inadequate developer assistance. I believe these obstacles pose significant hurdles to the broad acceptance of appchains.
Custom-built blockchains, known as Appchains, are tailored to cater to the unique requirements of Decentralized Applications (DApps) or specific functionalities.
Cost and support: Cronje vs. Hilmar
Cronje’s primary concern revolved around the steep costs associated with launching and sustaining appchains. He pointed out that expenses connected to areas like regulatory compliance and oracle systems tend to pile up quite rapidly.
He shared that his team’s infrastructure expenses have already reached $14 million this year. He noted that many of these recurring expenses make it difficult for developers to focus on their core applications and users.
Hilmar Orth, creator of Gelato Network, expressed a different perspective from Cronje’s viewpoint. Orth proposed that the essential infrastructure can now be conveniently obtained via rollup-as-a-service platforms (RaaS providers).
orth_statement: Orth explained that developers are no longer required to construct infrastructure themselves, thanks to the assistance provided by framework teams and RaaS providers. He addressed Cronje’s worry about isolation, assuring him that help for appchains is easily accessible.
Liquidity and security: Cronje vs. Boiron
Additionally, Cronje voiced worries about the issue of liquidity compartmentalization in appchains. He argued that the liquidity is essentially directed towards bridges, which he described as being “centralized and vulnerable to breaches.
Marc Boiron, the CEO of Polygon Labs, introduced AggLayer as a potential remedy for numerous liquidity challenges by building a network of compatible application chains (appchains) that interact seamlessly.
Boiron’s perspective suggests that by making appchain liquidity fungible (interchangeable) across various blockchains, there could be a more hopeful outlook on the efficient management of liquidity, as this approach may significantly minimize the risks associated with fragmentation.
Orth echoed this optimism, asserting that rollups already come with built-in bridges and market makers and that “faster zk proofs” optimize the movement of funds.
Community and network effects debate
Additionally, Cronje mentioned that L2s, functioning as appchains, lack a user or developer community, which reduces the essential network effects required for appchains to flourish.
Boiron expressed a differing opinion, stating that the concepts of community and network impacts continue to thrive. He further emphasized that numerous individuals, often referred to as “friends” or peers, actively participate in AggLayer, not just for personal gain, but to foster growth within the community, contributing to its expansion.
Additionally, Hilmar contested the community declarations made by both Cronje and Boiron. He explained that builders frequently engage in competition to attract users, but they do not necessarily function as friends. This represents the true nature of their relationship.
The discussion among Cronje, Orth, and Boiron about second languages as appchains persists, generating interest on platform X, underscoring their differing viewpoints on this topic.
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2024-10-13 19:06