When it comes to modern technology, Application-specific blockchains are at the forefront. All sectors may rest assured that their digital ledgers, including those for Bitcoin (BTC) and Ethereum (ETH), are safe with this solution. Forecasts indicate that the worldwide market will expand from $5.88B in 2021 to $1,314.03B in 2030, a CAGR of 82.4%.
Behold blockchains tailored to specific applications. The future of decentralization is being shaped by these platforms, which outperform general-purpose apps in performance, scalability, security, cost-efficiency, and governance. There is great potential for these specialized blockchains as this industry area grows. The effects of blockchains tailored to particular uses are discussed on this page. Please keep reading to learn why they represent decentralization’s bright future.
The top reasons for the application-specific blockchain
In contrast to general-purpose blockchains, which may run any number of applications, application-specific blockchains are purpose-built to run just one. These brand-new systems have unique features like built-in virtual machines and consensus mechanisms. They aren’t, in a nutshell, blockchain-based programs. Each decentralized application (dApp) has a blockchain tailored to its needs.
Decentralized applications, or DApps, are software programs that operate on a distributed ledger or a network of computers rather than on an individual machine. Layer 1 blockchains (L1) coordinate consensus and execution on the same layer, while layer two blockchains (L2) separate execution from consensus. Some examples of these customized blockchains used to improve decentralization include Avalanche Subnets, Polygon Supernets, and Cosmos Zones. The blockchain sector has a rich history of internal support from key players and engineers, which is lovely.
Internal blockchain investments like this allow top-tier programmers to build platforms tailored to specific applications. Bootstrapping, venture capital, or crowdfunding are just a few practical methods they can use to seek blockchain finance. Application-specific blockchains can play a crucial role in further decentralizing networks. Their significance to decentralization’s future is outlined below:
Enable Platform Customization and Optimization
Web3 technologies are gaining traction, and with application-specific blockchains, programmers may tailor blockchain features to meet the needs of particular applications. Applications in the corporate world benefit significantly from this personalization. These platforms can assist businesses in optimizing their specialized chain demands about certain qualities.
One company that has introduced blockchain solutions for RWAs is Real. Their individualized approach to asset management, including real estate and commodities, solves the long-term problems with decentralized finance. Building its blockchain platform, Re.al enhances infrastructure, facilitating more accessible access to assets for trading while ensuring compatibility and fluidity.
Scale applications up and down
Blockchains designed for specific applications provide platforms with more leeway to scale up or down depending on user needs. One example is EY OpsChain Contract Manager (OCM), a blockchain technology built on Ethereum that streamlines agreements, lowers costs, and increases security.
Contrast this with smart contracts, which are self-executing code written on general-purpose blockchains, and you have an application-specific blockchain. Automating and enforcing agreements between parties, smart contracts do not alter the characteristics of blockchains. An inventive contract audit procedure is needed to analyze codes for security flaws or problems and fix them.
With a compound annual growth rate (CAGR) of 82.2%, the worldwide intelligent contracts market is expected to reach $73,773.0 million by 2023 from $684.3 million in 2022. The application-specific blockchain has more to offer, yet this market expansion could lead to blockchain technology’s scalability in the future.
Maintain Platform Network Security and Data Privacy
Network security and data privacy are both enhanced by application-specific blockchains. They can secure networks and information by integrating blockchain technology with artificial intelligence (AI). With its secure, decentralized ledger, blockchain ensures data integrity and transparency, while AI offers advanced data processing capabilities.
Using blockchain technology to secure artificial intelligence data ensures the integrity and precision of supply chain data in logistics and SCM. This guarantees compliance and traceability while also eliminating tampering. In the entertainment and media sectors, the identical technology is used. Direct, private communication between producers and consumers is made possible by decentralized AI networks built on blockchain technology.
Also Read: Particle Network introduces modular L1 blockchain
Low Transaction Fees Without Sacrificing Efficiency
Application-specific blockchains provide economic benefits through the maintenance of efficiency and the reduction of transaction costs. Additionally, they save money by concentrating on essential activities and removing unnecessary features.
Web3 validators on ETC and similar platforms get a hefty cut of the money and fees from Defi apps. Defi apps running on native chains, on the other hand, get to retain all of the protocol charges so that they can make even more money.
Additionally, apps can tie token price to underlying blockchain token value with application-specific blockchains. One way in which app chains can boost their token’s value is by allowing users to pay transaction fees with it. The app and its users gain from this economic model, creating a win-win situation.
They Enable Application Governance and Control
Full governance and control over infrastructure are provided by application-specific blockchains, as opposed to decentralized apps on general-purpose blockchains. Unlike shared blockchains from larger, independent communities, they let stakeholders maintain their chains.
The protocol and the application’s goals are in sync in blockchains designed for a single use case. They facilitate the adoption of valuable enhancements adapted to individual requirements, such as resolving common issues with Apple screen time.
Blockchain safely records data from sensors and operations for AI-driven performance enhancements in sectors like automotive. Blockchain technology assures audit records and safety compliance, making AI judgments more accountable.
To the bright, decentralized future
Blockchain technology, especially application-specific blockchain platforms that promote decentralization, will shape decentralization. Benefits that these platforms may provide include:
- Customization and optimization
- Flexibility and scalability
- Privacy and security
- Cost-efficiency
- Governance and control
Whether you’re a developer, business, or consumer, it is crucial to capitalize on blockchain technology. Using apps designed for specific purposes might significantly affect your financial dealings. Innovation, spurred on by this field’s persistent technological advancements, will increase the number of decentralized networks. Decentralization will be massive in the future, and application-specific blockchains are where it’s at!
