An appchain is a dedicated blockchain built for a single product or ecosystem. Instead of competing for blockspace alongside thousands of unrelated apps, companies can spin up their own execution layer—usually secured by Ethereum.
Today, most appchains are built on Ethereum Layer‑2s, combining Ethereum’s security with faster, cheaper transactions. Frameworks like Arbitrum Orbit and Optimism’s OP Stack make launching one nearly plug-and-play.
Appchains are especially compelling for platforms already operating at scale—those processing millions of daily transactions or billions in value. Think: brokerages, exchanges, payment processors, and social or gaming platforms. These companies can onboard existing users into a high-performance, purpose-built onchain environment.
For these high-volume platforms, appchains unlock a powerful set of advantages:
Scalability & Predictability
Own your blockspace—eliminating congestion from third-party apps. You can set throughput targets, avoid surprise gas spikes, and even subsidize gas for a seamless UX.
Cost Control
Enable flexible fee models or gasless transactions, tailoring the cost structure to your business.
Custom UX & Compliance
Build in KYC flows, geo-restrictions, private order books, or custom wallets—without waiting for upstream protocol changes.
Economic Capture
Keep sequencer fees and MEV (miner extractable value) revenue in-house, instead of passing them to Layer‑1 validators.
Roadmap Independence
Ship features on your schedule. Swap out components—like data availability layers—without dependencies.
Composability Without Fragmentation
Appchains can inherit Ethereum’s liquidity and bridging infrastructure, so users can move assets in and out easily.
Despite their strengths, appchains do introduce tradeoffs:
Security Assumptions
While most appchains inherit Ethereum’s security, users must trust the operator during the fraud/validity challenge window.
Liquidity Fragmentation
Assets start siloed. Deep bridge integrations or shared sequencer models (like OP Superchain) help solve this.
Operational Overhead
Running sequencers, provers, and data availability layers introduces infrastructure complexity—comparable to managing a high-traffic microservices stack.
Launching an appchain used to take months and a full-stack team. Now, a growing ecosystem of tooling abstracts away the heavy lifting:
Rollup Deployment & Infrastructure
Caldera – Launch L2/L3s on OP Stack, Arbitrum Orbit, ZK Stack, and Polygon CDK. Features include custom gas tokens and data availability. Their upcoming Metalayer connects liquidity across chains.
Conduit – OP Stack and Arbitrum Orbit rollups with managed infrastructure, sequencer hosting, upgrades, and analytics.
AltLayer – Restaked rollups for ephemeral or persistent chains using ZK and optimistic stacks.
Cross-Chain Interoperability & Liquidity
LayerZero – Omnichain messaging for bridging assets and unifying liquidity.
Socket – Chain abstraction protocol for modular swaps and bridging via unified UX.
LI.FI – Cross-chain DEX and bridge aggregator with smart routing.
Across – Fast, intents-based bridge optimized for rollups.
OP Superchain – Shared security and communication layer across OP Chains.
Polygon AggLayer – ZK-proven liquidity aggregation for CDK chains.
Axelar – PoS-based cross-chain messaging and transfers.
Wallet UX & Account Abstraction
Privy – Embedded wallets with email/social logins for non-custodial onboarding.
Biconomy – Gasless infrastructure, paymasters, and account abstraction for smooth UX.
Web3Auth – MPC-based social login and wallet infrastructure.
Dev Tooling & Monitoring
Thirdweb – SDKs, infrastructure tools, and audited contracts for rollup-native apps.
Alchemy – L2-optimized RPC and node infrastructure with scalable APIs.
Tenderly – Contract observability, debugging, and simulation tools.
These tools let teams focus on UX, growth, and value capture—not infrastructure headaches.
Appchains aren’t theoretical. Top companies are already proving the model works—at scale.
Coinbase launched Base in 2023 using the OP Stack. It’s now a top L2 by activity—once surpassing 14 million transactions in a single day. Base powers Coinbase’s onchain suite: wallet, payments, DeFi, and more. With The Base App, Coinbase is financializing social activity—capturing sequencer fees and MEV in-house rather than letting it leak to Ethereum.
Robinhood followed in June 2025, launching tokenized U.S. equities for EU users on Arbitrum—and announcing Robinhood Chain, a custom L2 on Arbitrum Orbit. It will enable 24/7 trading and real-time settlement for tokenized equities. Robinhood will bring its 20M+ users on day one—solving the cold-start problem most chains face.
Instead of bootstrapping users, these companies bring their own—and build the chain around their product.
More will follow. Any platform that controls distribution and transaction flow is a candidate for an appchain:
Fintech & Payments – PayPal, Stripe, Revolut, Block: real-time settlement, KYC compliance, and rewards on-chain.
Gaming – Epic Games, Roblox, Unity: game economies and digital assets on custom infrastructure.
Social & Creator Platforms – X, Discord, Reddit, Twitch: tokenize engagement, streamline rev shares, and embed monetization.
These companies don’t need liquidity—they already have it. With appchain tooling mature, the real unlock is simple: build infrastructure around your product—and turn it into a monetizable asset, not a sunk cost.
The corporate appchain era is here. The only question is: who’s next?
Thanks for reading Mixed Realities by TJ Kawamura! Subscribe for free to receive new posts and support my work.
TJ
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