Sonic Labs founder, Andre Cronje, believes that using layer 2 (L2) app chains is not the best choice for developers. App chains are specialized L2 blockchains that cater to specific application needs. In a recent post, Cronje highlighted several drawbacks of app chains, such as the high infrastructure costs, fragmented liquidity, and lack of developer support.
Cronje pointed out that app chains do not have the necessary infrastructure for deploying stablecoins, oracles, and institutional custody, and the actual cost of infrastructure is often underestimated. His team has already spent $14 million on expenses like custody, exchanges, oracles, and bridges this year, with a significant portion being recurring costs.
On the other hand, Hilmar Orth, the founder of Gelato Network, has a different perspective. Orth believes that developers can access infrastructure easily through rollup-as-a-service providers (RaaS), which offer substantial support to developers, contrary to Cronje’s claims.
Cronje also expressed concerns about app chains leading to fragmented liquidity due to vulnerable bridges. Marc Boiron, CEO of Polygon Labs, suggested that the AggLayer could potentially solve this issue by creating an interoperable network of app chains, enabling sovereign blockchains to share liquidity.
Orth mentioned that each rollup comes with its own bridges and market makers, leading to liquidity accumulation in a few chains with high total value locked (TVL). He also highlighted that faster zero-knowledge (zk) proofs would make fund transfers across rollups more seamless.
When it comes to community and network effects, Cronje argued that app chains lack a community of builders and users, hindering network effects. Boiron, on the other hand, believes that the AggLayer can foster network effects by aggregating users and liquidity, leading to growth opportunities for all participants.
In conclusion, the debate around the use of L2 app chains continues, with different perspectives on their effectiveness for developers and the overall blockchain ecosystem. While Cronje raises concerns about infrastructure costs and fragmented liquidity, Orth and Boiron offer alternative solutions and insights to address these challenges and foster network effects within the blockchain community.