Financial applications like perpetual contracts are better suited for general-purpose blockchains (e.g., Ethereum) rather than independent application-specific chains (appchains). Key reasons include:

• Finance Thrives on Integration: History shows that finance tends toward centralization. Shared infrastructure enhances liquidity and scale effects, as evidenced by Ethereum’s dominant lead in total value locked (TVL).

• Distribution is Paramount: The core advantage of general-purpose chains lies in distribution and network effects, which outweigh minor product differences. Traditional finance also relies on distribution channels rather than technical superiority.

• Platform Economics: Successful applications support platform growth, creating a flywheel effect where traffic and ecosystems reinforce each other. Decentralized blockchains eliminate the risk of arbitrary rule changes by traditional platforms.

• Network Effects Amplify Dominance: Leading general-purpose chains will grow stronger with killer apps like perpetual contracts, as network effects accumulate rather than fragment.

Author: World Capital Markets
Translator: Saoirse, Foresight News

The debate between appchains and general-purpose chains (GP chains) is ongoing. However, from historical and economic perspectives, it is evident that perpetual contracts are better built on general-purpose chains.

The idea that applications should create independent chains is putting the cart before the horse. Truly high-quality applications should support general-purpose chains rather than fragment into isolated "silos."

1. Finance Integrates, It Does Not Fragment
The trajectory of finance has always been toward integration, not fragmentation.

In 1921, the U.S. had approximately 30,000 banks. Today, that number has dropped to about 4,300—an 86% decline. Why? The answer lies in shared infrastructure, unified standards, and efficient settlement mechanisms. Fewer infrastructures mean stronger liquidity and greater scale effects.

Despite the annual emergence of new blockchain projects and a "Cambrian explosion" of alternatives, Ethereum—a "slow and expensive" blockchain—remains the undisputed leader in TVL, with a scale nearly 10 times that of Solana.

As of August 31, 2025, the top five blockchains by TVL are:

1. Ethereum

2. [General-Purpose Chain]

3. [General-Purpose Chain]

4. [General-Purpose Chain]

5. HyperEVM (another general-purpose chain powering Hyperliquid, the only truly successful appchain to date).

This demonstrates that shared settlement is the future of blockchain finance, not fragmented "application-specific silos."

2. Distribution is King: The Winning Factor in Finance
A common argument is that "general-purpose chains only solve distribution." But "only"? That’s like saying "a drug only cures cancer." In finance, distribution is the core competitive advantage.

How much do the financial products you use daily differ across providers? From checking accounts to the NYSE vs. Nasdaq, the differences are minimal beyond "distribution capabilities" and "established network effects." Server hardware is cheap, but distribution is priceless.

3. Platform Economics: The Real Lesson
Platforms are powerful distribution vehicles.

The history of platforms—from operating systems and app stores to Xbox, the internet, and more recently Telegram—shows a clear pattern: groundbreaking applications support platforms rather than operating independently.

Consider the importance of distribution: How many apps on your iPhone are downloaded outside the App Store? How often do you access websites without a browser? TikTok didn’t build a better OS, Facebook didn’t develop a better browser, and Halo didn’t make a better Xbox.

Contrary to some current views, high-quality applications have an incentive to support platform growth. Popular apps want platforms to succeed, creating a "flywheel effect": apps bring traffic, traffic attracts more apps, which in turn brings more traffic.

Blockchains address the core drawback of traditional platforms—"platform risk" (e.g., arbitrary rule changes or restrictions)—through decentralized governance. On decentralized platforms, there won’t be another "FarmVille"衰落 due to platform policy shifts. You enjoy all the benefits of a platform without the risk of exploitation. (Note: Current trade-offs between performance and decentralization mean projects like MegaETH still have centralized attributes, but the end goal matters more than the starting point.)

4. Conclusion: Winner-Takes-All Driven by Network Effects
Finance continues to integrate, platforms dominate distribution, and distribution outweighs product features.

The only difference with blockchains is that they amplify these effects further.

The future trend is clear: Perpetual contracts (and all "killer apps") will make leading general-purpose chains even stronger. Network effects do not fragment; they compound and intensify.

Financial applications like perpetual contracts are better suited for general-purpose blockchains (e.g., Ethereum) rather than independent application-specific chains (appchains). Key reasons include:

• Finance Thrives on Integration: History shows that finance tends toward centralization. Shared infrastructure enhances liquidity and scale effects, as evidenced by Ethereum’s dominant lead in total value locked (TVL).

• Distribution is Paramount: The core advantage of general-purpose chains lies in distribution and network effects, which outweigh minor product differences. Traditional finance also relies on distribution channels rather than technical superiority.

• Platform Economics: Successful applications support platform growth, creating a flywheel effect where traffic and ecosystems reinforce each other. Decentralized blockchains eliminate the risk of arbitrary rule changes by traditional platforms.

• Network Effects Amplify Dominance: Leading general-purpose chains will grow stronger with killer apps like perpetual contracts, as network effects accumulate rather than fragment.

Author: World Capital Markets
Translator: Saoirse, Foresight News

The debate between appchains and general-purpose chains (GP chains) is ongoing. However, from historical and economic perspectives, it is evident that perpetual contracts are better built on general-purpose chains.

The idea that applications should create independent chains is putting the cart before the horse. Truly high-quality applications should support general-purpose chains rather than fragment into isolated "silos."

1. Finance Integrates, It Does Not Fragment
The trajectory of finance has always been toward integration, not fragmentation.

In 1921, the U.S. had approximately 30,000 banks. Today, that number has dropped to about 4,300—an 86% decline. Why? The answer lies in shared infrastructure, unified standards, and efficient settlement mechanisms. Fewer infrastructures mean stronger liquidity and greater scale effects.

Despite the annual emergence of new blockchain projects and a "Cambrian explosion" of alternatives, Ethereum—a "slow and expensive" blockchain—remains the undisputed leader in TVL, with a scale nearly 10 times that of Solana.

As of August 31, 2025, the top five blockchains by TVL are:

1. Ethereum

2. [General-Purpose Chain]

3. [General-Purpose Chain]

4. [General-Purpose Chain]

5. HyperEVM (another general-purpose chain powering Hyperliquid, the only truly successful appchain to date).

This demonstrates that shared settlement is the future of blockchain finance, not fragmented "application-specific silos."

2. Distribution is King: The Winning Factor in Finance
A common argument is that "general-purpose chains only solve distribution." But "only"? That’s like saying "a drug only cures cancer." In finance, distribution is the core competitive advantage.

How much do the financial products you use daily differ across providers? From checking accounts to the NYSE vs. Nasdaq, the differences are minimal beyond "distribution capabilities" and "established network effects." Server hardware is cheap, but distribution is priceless.

3. Platform Economics: The Real Lesson
Platforms are powerful distribution vehicles.

The history of platforms—from operating systems and app stores to Xbox, the internet, and more recently Telegram—shows a clear pattern: groundbreaking applications support platforms rather than operating independently.

Consider the importance of distribution: How many apps on your iPhone are downloaded outside the App Store? How often do you access websites without a browser? TikTok didn’t build a better OS, Facebook didn’t develop a better browser, and Halo didn’t make a better Xbox.

Contrary to some current views, high-quality applications have an incentive to support platform growth. Popular apps want platforms to succeed, creating a "flywheel effect": apps bring traffic, traffic attracts more apps, which in turn brings more traffic.

Blockchains address the core drawback of traditional platforms—"platform risk" (e.g., arbitrary rule changes or restrictions)—through decentralized governance. On decentralized platforms, there won’t be another "FarmVille"衰落 due to platform policy shifts. You enjoy all the benefits of a platform without the risk of exploitation. (Note: Current trade-offs between performance and decentralization mean projects like MegaETH still have centralized attributes, but the end goal matters more than the starting point.)

4. Conclusion: Winner-Takes-All Driven by Network Effects
Finance continues to integrate, platforms dominate distribution, and distribution outweighs product features.

The only difference with blockchains is that they amplify these effects further.

The future trend is clear: Perpetual contracts (and all "killer apps") will make leading general-purpose chains even stronger. Network effects do not fragment; they compound and intensify.