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Challenges Facing Appchains: High Costs and Liquidity Issues Spark Debate

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.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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