The Web3 space is at an interesting turning point. A big question looms: Will the future be all about app-specific blockchains tailored to particular use cases, or will general-purpose blockchains like Ethereum and Solana continue to dominate? Both approaches are bringing something unique, and whichever way this plays out, could shape the future of Web3.
Currently, general-purpose Layer 1 blockchains (think Ethereum or Solana) are the backbone of Web3. These blockchains are designed to handle every transaction on-chain, but the limitations of this model are clear. As these networks get busier, they need help with speed and cost. Layer 2 solutions like Optimism and Arbitrum have stepped in to process transactions off-chain and then send the results back to the main chain, making things faster and cheaper. Despite these solutions, no single blockchain seems to be a perfect fit for every project.
App-specific blockchains are becoming a popular alternative with some teams, like Uniswap with their Unichain, launching their own chains. Mason Nystrom, Junior Partner at Pantera Capital, highlights that as Web3 apps scale, they often seek more control by establishing their own networks. Control over their own blockchain allows them to customize the network, save on costs and avoid competing for resources with other projects. Additionally, owning the network lets apps capture more value and process transactions faster.
However, operating independently comes with its risks. Ben Chow, Co-founder of Meteors, emphasizes the importance of composability, in other words, the ability for apps to interact and collaborate on shared networks. He cautions that app-specific chains may lead to isolation, cutting them off from the advantages of broader ecosystems. Chow compares it to developing an app for an existing smartphone platform, which is far more beneficial than creating a new platform from scratch. Helium’s move from its own network to Solana is a prime example, as the transition allowed it to solve technical issues and integrate more smoothly with other projects.
Looking ahead, Nystrom predicts a “modular” Web3 future where apps and blockchains function independently while still collaborating when necessary. Ethereum and Solana will continue to play key roles, but apps might carve out their own spaces or launch mini-blockchains, ultimately benefiting the larger ecosystem.
The future of Web3 is unlikely to be defined by one model dominating the other. A combination of general-purpose and app-specific chains will probably work in harmony, leading to a more diverse and innovative ecosystem.
Entities like Horizon Fintex would like to see Web3 innovations that help them serve their clients better. It is unlikely to matter a lot whether those solutions are on L1 or L2 networks.
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