Challenges Facing Appchains: High Costs and Liquidity Issues Spark Debate
Andre Cronje, co-founder of Sonic Labs, recently questioned the feasibility of layer-2 appchains, emphasizing the hurdles they present for developers.
He pointed out that significant expenses, such as infrastructure upkeep and regulatory requirements, can make it challenging for teams to prioritize application development. This year alone, Cronje’s team has already spent $14 million on these recurring costs, which he argues hinders the adoption of appchains.
On the other hand, industry figures like Hilmar Orth of Gelato Network disagree. Orth believes rollup-as-a-service solutions have streamlined the process by offering ready-made infrastructure, eliminating the need for developers to build from the ground up. He also dismissed concerns about appchain isolation, pointing out the various forms of support available from service providers.
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Cronje also expressed concerns about fragmented liquidity, as appchains often rely on centralized bridges, which can be vulnerable. However, Marc Boiron from Polygon Labs offered a potential solution: the AggLayer, a system designed to enhance liquidity by creating interoperable networks of appchains.
The conversation further touched on community dynamics. Cronje suggested L2 appchains lack a strong user and builder base, while Boiron and Orth pushed back, asserting that communities do actively contribute, even if developers often find themselves in competition for users. This ongoing debate underscores the differing views on whether appchains can evolve to address these challenges and become widely adopted.