With Arcana Network’s upcoming public sale and listing of XAR token, we wanted to take a dive into our strategy and goals with building an Appchain that is powered by XAR.

Blockchain scaling has been a prominent problem for a long time with a diverse set of solutions from Proof-of-Stake Layer 1s and Layer 2s, Sidechains, Rollups, to Modular chains.

While each solution has its own design philosophy, we believe app chains are the leading solution for infrastructure projects, as we head into 2024 with a new wave of platforms being built. This might even be a counter-narrative to a multi-chain thesis.

The Case for Appchains

Protocols that want to scale will have the best chance if they deploy their own chain. Every Layer1 that is trying to scale cannot support the design goals of multiple protocols and their growing economic activity. General-purpose blockchains aren't a good fit for every application. No matter how fast the TPS on L1 grows, there will always be a shortage of block space as more apps and users get onboarded to the ecosystem. 

Building a new L1 that is customized and optimized for each protocol as a sovereign chain gives you the best chance of growing the protocol.

With app chains, you can fully control and customise every aspect of the chain without relying on another chain to solve your engineering and design problems.

You control:

- The consensus mechanism

- Security of the network

- Validators that will be part of the network and their roles

- Performance metrics such as blocktimes, gas fees, uptime, etc.

We’ve seen this work with dYdX, one of Ethereum's largest DeFi protocols that launched its own Appchain. But the true power of app chains is unleashed when you don’t just have a single application, but an ecosystem of apps by the protocol built on its app chain to serve a need for a specific category.

And in Arcana’s case, it is solving UX-focused infrastructure needs for developers. Before we share how our appchain uniquely powers our products, let's dive into the general pros of an Appchain.

1. Sovereignty: Control over the security and composability of the chain ensures that you are not relying on infrastructure that is either slow to evolve or restricts the design goals of the protocol. The L1/L2’s mandates for which categories of apps they want to focus on, which can dictate their roadmap, engineering, and ecosystem support could be misaligned with your protocol’s goals.

2. Interoperability: By not anchoring the protocol to one ecosystem, you can enable interoperability between different chains, rollups, and app chains - to the extent it is required and makes logical sense. With dedicated appchains focused on cross-chain messaging, communicating data between chains will be abstracted and seamless.

3. Growth Potential: By building an appchain, there is greater potential to build an ecosystem of apps for the protocol without being limited by the underlying Layer 1. Possible because the apps and the chain are fine tuned for a hyper-specific use case and offer a superior experience to developers and users.

4. Increased Token Utility: The native tokens of the protocol now have additional velocity sinks through payments as gas fees, validator fees, staking, and fees to participate in the network. This retains the value accrual of the appchain’s tokens, which would have instead accrued for the native token of an L1/L2 blockchain.

5. Validator Set: Appchains typically have a curated validator set that ensures validators that are rent-seeking or exploiting through MEV are harder to establish themselves since the protocol and community have tighter control over forcing behavior that adds value to the ecosystem and users. This ranges from how the validators are selected to the architecture of processing transactions, managing block space, gas fees, etc. The nodes run by the appchain validators can even perform computation that cannot be expected from the validators of a general-purpose blockchain.

6. Decentralisation: Scaling solutions always face a regulatory risk of not being decentralised enough based on their architectural choices, such as a centralised sequencer for eg. By having control over scaling the network of the appchain, you are fully aware of how decentralised the network is and don’t run the risk of sudden classification of the chain as a security, impacting the ecosystem and user perception.  

What is Arcana’s Appchain?

Arcana Appchain is a UX-focused chain designed to improve the User Experience of Developers and Users in Web3 with a suite of products and SDKs.

Arcana focuses on reducing complexities, which allows developers to build on utility and functionality instead of solving for the complexities of using a blockchain.

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Why is Arcana Building its Own Chain?

By creating its own chain, Arcana can customize and fine-tune the network’s compute capabilities, parameters, consensus, gas fees, blocktimes, and validator set.

Arcana's architecture is a decentralized Proof-of-Stake App-Chain with nodes that are capable of:

• Distributed Key Generation (DKG): A decentralized key generation process essential for security and user privacy.
  
  

• Distributed Key Management: Designed for efficient login processes, ensuring keys are managed in a distributed yet efficient way.
  
  

• Multi-party Computing (MPC): Enabling collaborative computation among different entities while maintaining privacy and security.

The nodes that carry out these compute functions are also capable of validating the PoS chain.

This baseline of infrastructure allows Arcana to build a suite of products on top of the appchain designed to enhance user experience with dApps.

One of the standout examples of how an appchain helps is, that Arcana Auth is currently the fastest decentralized social login for web3 authentication (sub-5-sec login time), only possible because of our ability to design and build the base infrastructure ourselves, while being decentralized.

The Products That are Currently Live

• Arcana Auth: It simplifies user onboarding by enabling sign-ups via existing accounts like Google, Twitter, and Twitch, and further streamlines the user experience through instant wallet provisions for seamless NFT purchases, robust multi-factor authentication, and a customizable UI that resonates with brand aesthetics.‍

• Arcana Gasless: In a remarkable approach to tackling the pervasive issue of gas fees, Arcana sponsors them, thus lowering the entry barriers for users new to the ecosystem. It introduces features like a gas tank setup for each chain and a flexible sponsorship system, which collectively work towards improving user retention.‍

• SendIt: ​​It is designed to facilitate the sending and receiving of cryptocurrency using just an email address or Twitter handle, making the process of owning and transferring crypto assets significantly simpler, especially for those new to the crypto space. Currently, SendIt boasts a user base of 500,000 and has already facilitated 1M transactions.‍

• Coming Soon: Arcana Credit (Cross-chain bridging solution), Arcana Access (On-chain access and token gating), Arcana Check Out (One-click check out solution for NFT marketplaces).

XAR's Role in the Ecosystem

The native token, XAR, facilitates various functionalities within Arcana:

• Utility: Facilitates transactions and interactions within the ecosystem.‍

• Incentivization: Encourages network participation by rewarding users, developers, and contributors.‍

• Governance: Provides governance rights to token holders for active participation in decision-making processes.‍

• Security: Enhances network security through token staking.

Addressing User Needs

In the spirit of Maslow’s Pyramid, Arcana’s design philosophy adopts a hierarchical approach to address the multifaceted needs of Web3 users.

• Basic Utility and Functionality (Base Level): At this fundamental level, users seek applications that are useful and easy to navigate. Arcana focuses on delivering and enabling dApps with intuitive essential utilities, ensuring that the users find immediate value and functionality without enduring complexities.‍

• Speed and Performance: Users inherently expect applications to be swift and responsive. Arcana ensures that transaction speeds are optimal, and performance is consistent, facilitating an environment where users can interact with applications smoothly without unnecessary waiting periods.‍

• Security and Trust: Moving upwards, security is not merely a want but an expectation. Users anticipate that their interactions and data are safeguarded. Arcana prioritizes building a secure foundation where users can operate with trust and assurance.‍

• Seamless Interactions and Interoperability: Users crave a seamless experience where they can interact with various applications effortlessly without worrying about compatibility or multiple wallets. Arcana aims to foster a universal experience, making cross-chain interactions smooth and integrated.‍

• Self-Actualization: Full Control and Understanding (Top Level): Users have complete control and autonomy over their blockchain interactions, embodying the essence of decentralization.
  
  

Impact Arcana App Chain Will Create on Web3

Arcana aims to simplify blockchain complexities, making decentralised applications more approachable and user-friendly. It promotes wider adoption, invites new users to the blockchain space, and supports developers in focusing on creating user-centric applications. The application chain also enhances interoperability for seamless interactions across different chains and platforms, encouraging a more unified blockchain ecosystem.

The Bigger Vision for Arcana App Chain

The journey unfolds in stages, moving from economic and social incentives towards a completely decentralized and permissionless system. This transition reflects a natural evolution, with Arcana’s native token, XAR, playing a pivotal role in aligning incentives and driving participation from node operators and application developers.

In Arcana’s envisioned future, the focus is on expanding a suite of products to serve the entire lifecycle of a user's journey in interacting with popular apps. From DeFi, NFTs, and Gaming, to RWAs, Data and more.

If it helps a developer acquire and retain more users, it will be built on our chain

About Arcana

Arcana Network is an UX-focused appchain dedicated to improving Web3 UX with a suite for products for developers and users.

Its offerings include Arcana Auth for seamless user logins and web3 authentication on dApps, Arcana Gasless for frictionless Web3 transactions, SendIt for simplified crypto transfers​.

By addressing challenges like user onboarding, complex user interfaces and transaction costs, Arcana is fostering a more user-friendly and inclusive web3 ecosystem

Join the Republic Pre-Sale here: https://republic.com/arcana

Stay updated through our communities for real-time updates, insights, and essential announcements:

Official Links: Website | Telegram | TG Announcement | Twitter | GitHub | Discord |

‍Please note: https://arcana.network is the only official website to access Arcana's XAR Drop. Neither the claiming site, any member of the Arcana team, nor any community moderator will ever ask you to enter your private key or transfer tokens of any kind from your wallet. Disclaimer