Sonic

Gelato

<ul class="wp-block-list">
 <li>Andre Cronje criticizes layer-2 appchains for high infrastructure costs, limiting developer focus, and stifling innovation.</li>  
 <li>Hilmar Orth argues that rollup-as-a-service providers simplify infrastructure, making appchains more accessible for builders.</li>  
 <li>The debate on appchains reveals a split in the community, with some believing in collaboration while others see fierce competition.</li> 
</ul>  
<p>In a recent post on <a href="https://x.com/AndreCronjeTech/status/1845260816289091980" target="_blank" rel="noopener noreferrer nofollow">X</a>, Andre Cronje, co-founder of Sonic Labs, voiced strong criticism regarding layer-2 (L2) appchains. He argued that these chains are impractical for builders due to infrastructure challenges.&nbsp;</p>  
<p>Cronje highlighted issues like high costs, fragmented liquidity, and a lack of developer support. Consequently, he believes these obstacles hinder the adoption of <a href="https://www.alchemy.com/overviews/what-is-an-appchain" target="_blank" rel="noopener noreferrer nofollow">appchains</a>. His team's infrastructure expenses have already soared to $14 million this year, illustrating the financial burden on developers.</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  https://twitter.com/AndreCronjeTech/status/1845260816289091980
 </div>
</figure>  
<h2 class="wp-block-heading" id="h-the-costly-reality-of-appchains">The Costly Reality of Appchains</h2>  
<p>Cronje stressed the high costs of deploying and maintaining appchains. Infrastructure expenses quickly add up, including regulatory compliance and Oracle integration. Moreover, many builders struggle to focus on developing core applications and engaging users.&nbsp;</p>  
<p>This situation leads to wasted resources and time, stifling innovation. Appchains also create liquidity fragmentation. This fragmentation forces liquidity onto centralized bridges, which are vulnerable to attacks. Hence, builders face substantial risks when utilizing these solutions.</p>  
<h2 class="wp-block-heading" id="h-disagreement-from-industry-peers">Disagreement from Industry Peers</h2>  
<p>In response, Hilmar Orth, founder of Gelato Network, disagreed with Cronje's assessment. Orth noted that infrastructure is now accessible via rollup-as-a-service (RaaS) providers. This accessibility allows developers to avoid building from scratch. Additionally, Orth argued that support for appchains is readily available, countering Cronje's concerns about isolation.</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  https://twitter.com/hilmarxo/status/1845329540932894818
 </div>
</figure>  
<p>Marc Boiron, CEO of Polygon Labs, introduced the AggLayer as a potential solution. He suggested that it could create an <a href="https://cryptonewsland.com/circles-usdc-and-cctp-launch-on-sui-network-to-expand-access-across-blockchains/" target="_blank" rel="noopener noreferrer nofollow">interoperable network of appchains</a>. This approach aims to mitigate liquidity issues by making appchain interactions more fungible.</p>  
<h2 class="wp-block-heading" id="community-dynamics-and-network-effects">Community Dynamics and Network Effects</h2>  
<p>Cronje also pointed out the absence of a user and builder community surrounding L2 appchains. He believed that this absence diminishes the essential network effects required for growth. However, Boiron <a href="https://x.com/0xMarcB/status/1845299236914479472" target="_blank" rel="noopener noreferrer nofollow">countered</a> that community dynamics are vibrant.&nbsp;</p>  
<p>He highlighted that numerous contributors are actively working to <a href="https://cryptonewsland.com/iotex-and-polygon-labs-partner-to-integrate-agglayer-with-iotex-2-0/" target="_blank" rel="noopener noreferrer nofollow">expand the AggLayer ecosystem</a>. Orth supported this perspective, asserting that builders often compete against each other rather than collaborate. This reality raises questions about the true nature of community support in the appchain landscape.</p>  
<p>The ongoing debate between Cronje, Orth, and Boiron reflects a critical examination of the L2 appchain model. As the discussion continues, the industry watches closely to see how these dynamics evolve.</p> 
<p>The post <a href="https://cryptonewsland.com/andre-cronje-slams-layer-2-appchains/" rel="noopener noreferrer nofollow">Andre Cronje Slams Layer-2 Appchains: Are They Worth the Cost?</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Andre Cronje Slams Layer-2 Appchains: Are They Worth the Cost?

Table of Contents

Crypto News Land

Other articles published on Oct 13, 2024

Widespread FBI Investigation: Over $25 Million in Crypto Seized, Three Companies Charged

3.7 Trillion SHIB In 24 Hours. Here’s the Significance

Elect Donald (ELECDON) Will Explode Over 15,000% Before Exchange Listings, While Shiba Inu and Do...

Is This New Crypto the Future? Here’s Why It Could Outperform XRP, ADA, and SUI

Solana Trader Who Turned $10,000 To $18,000,000 On BONK Buys FLOKI And ETFSwap (ETFS) For 25000% ...

Aptos Shows Strong Momentum With Double-Digit Gains—Is More Rally Ahead?

Join our free newsletter for daily crypto updates!