In the field of encryption, you may often be confused by some concepts that look similar. For example, in terms of chains, there are various concepts including application chains, side chains, full chains, parallel chains, cross-chains, multi-chains, etc. . Today, we will continue our series of popular science explanations on the basic knowledge of blockchain, so that you can better understand them.
First, we need to know the basic uses of these chains. In the field of encryption, whether it is application chain, side chain, full chain or cross-chain, all these chains are actually designed to solve the two problems we face in the blockchain:
The first is interoperability, which promotes seamless and large-scale interaction between different blockchains.
The second is scalability (Scalability), which can be expanded while retaining the essence of security and decentralization.
So, next, we divide it into two parts to sort out these concepts for everyone.
The first part is about interoperability.
1.Multichain
Multichain refers to a setup in which each dApp can run on an isolated set of smart contracts across multiple blockchains, which can increase overall throughput, user onboarding, and cost efficiency, allowing for a diverse network to evolve in parallel.
However, multi-chains also bring challenges such as fragmented liquidity, hindered composability, and potential conflicts in global state consistency. Because it requires deploying dApps across multiple chains, it increases friction, but it also limits some of the impact of bridging vulnerabilities.
For example, the well-known Uniswap is multi-chain because it is deployed on multiple blockchains. As shown below.
2. Crosschain
Cross-chain refers to the ability of different blockchains to communicate with each other, share data or value, and conduct transactions, which often occurs through bridges (and therefore is vulnerable to attacks).
There are currently many cross-chain solutions, the most well-known of which is probably Chainlink’s Cross-Chain Interoperability Protocol (CCIP). So what problems can this CCIP solve?
To fully embrace the future of on-chain finance, traditional institutions need to seamlessly connect their existing systems to any blockchain, and Chainlink’s CCIP solves this problem by providing the single, future-proof interface institutions need across chains.
3. Omnchain
Omni means all or all in Latin. We can imagine the entire chain as a world where all blockchains can communicate. The most well-known in this field is probably the Layerzero protocol, which is a leading protocol promoting full-chain interoperability for developers.
We have introduced Layerzero many times in previous articles. Interested friends can search for previous articles to view.
The second part is about scalability.
4.Appchain
If we talk about it in essence, AppChain is a blockchain specifically tailored for a specific application or protocol, which offers more customization capabilities than dApps on L1. So, it’s a huge advantage when a product requires unique features and mechanisms to function optimally.
For example, dYdX, one of the most popular perp dexes out there, successfully adopted the Appchain model after experiencing initial scalability issues. This suggests that some products require more customization than is typically offered on standard smart contract dApp platforms.
In terms of development frameworks, both Layer1 and Layer2 solutions support application chains. For example, on L1, platforms such as the Cosmos SDK and Avalanche Subnet can create application chains. On L2, we can also see solutions such as Optimism Stack, Polygon Supernets and Starknet.
In terms of functional requirements, L1 and L2 application chains can meet different needs. L1 application chains offer sovereign security, are MEV resistant, more flexible, and independent, but they also have the burden of bootstrapping security and maintaining validators. In contrast, L2 application chains inherit the security of the base layer (such as Ethereum) and benefit from lower transaction costs and scalability, but they are less flexible because they comply with the security and consensus mechanisms of the base layer .
Another point worth noting is that deploying application chains requires comprehensive trade-offs, as they require a higher degree of maintenance than simple dApps, including validators, bridges, cross-chain liquidity, composability sexual and regularly escalated attention.
Simply put, application chains are best suited for projects that require high-frequency transactions or require a high level of customization and control over blockchain parameters, as they provide a balance between scalability, security, and decentralization. But for those simple dApps or projects with fewer transactions, you may not need to face the overhead of maintaining an application chain, and these projects may prefer to run on an existing chain or L2 solution.
Looking to the future, application chains can open up endless possibilities. As we have seen with DeFi-specific app chains, or potentially industry-specific app chains, they can cater to specific market segments, providing optimized solutions for various industries. As the blockchain field develops, it is expected that more industry-specific application chains will emerge, and we are now in the early stages of application chain adoption. Their potential impact is huge, from fully on-chain games to decentralization. of social networks, perps, and the metaverse.
Appchains typically gain traction during bull markets, when network usage and gas fees are high, and competition for block space is at its peak. Therefore, I predict that in 24-25 years, we will see more projects related to application chains.
5. Parachain + Relay chain (Parachain + Relay chain)
They are both a type of blockchain whose main characteristic is that they attach the security provided by a central relay chain rather than providing their own consensus mechanism. These two concepts are often associated with the Polkadot and Kusama networks, where multiple parachains run in parallel.
"Para" means "beside" in Greek. In "parachains," the concept refers to each blockchain running alongside a central relay chain rather than independently. For example, in Polkadot, all parachains run in parallel with each other and are connected to the central Polkadot relay chain.
Moreover, the main advantage of the parachain model is that it allows multiple blockchains with different functions and purposes to run simultaneously and interoperate on a shared network.
6.Sidechains
Sidechains are independent blockchains connected to the main chain, allowing tokens or digital assets to be transferred between them. Sidechains can provide a potential solution to the scalability issues currently faced by blockchains.
Not only can sidechains run dApps and help reduce the computational load of the main chain, but they can also have their own tokens, protocols, consensus mechanisms, and security. Some of the sidechain projects that are currently attracting more attention include Polygon, Loom Network, Gnosis, Skale, etc.
7. Superchains
Pioneered by Optimism, Hyperchain is a Layer2 interconnection network built on OP Stack that aims to bring Internet scale to Ethereum, ensuring scalability without fragmenting the ecosystem.
The main feature of Super Chain is that it can achieve seamless movement across chains and share security, communication layer and open source development stack through a unified network, making deploying new chains as easy as deploying smart contracts.
8.Hyperchains
Hyperchains are similar to the Optimism Superchain mentioned above, with the main difference being that they are built using ZK rollups.
In addition, hyperlinks also have some core features of their own, such as:
Lightweight sequencer with low sequencing latency
Applications that can interact without bridging trust assumptions
Closed private chain, connected to the ecosystem
How to use native tokens as system base tokens
Okay, the above is all the content shared through "Hua Li Huawai" today. Let us finally summarize and review together. This article is one of a series of articles on the basic knowledge of blockchain. It mainly sorts out and introduces several basic concepts about chains, including multichain, crosschain, Omnchain, Appchain, Parachain, Relay chain, Sidechains, Superchains, Hyperchains. I hope today’s sharing can be helpful to everyone.
Special thanks for this article: CryptoKoryo, 0xTHades
Disclaimer: The above content is only a personal perspective and analysis. It is only for science learning and communication among enthusiasts and does not constitute any investment advice. Investment is risky, please treat it rationally, increase risk awareness, and abide by the relevant laws and regulations of the country and region where you are located!
