An application layer strategy defines how software programs operate on a blockchain. This encompasses the planning and execution of how decentralized applications or protocols interact with users and other systems, built upon the underlying blockchain infrastructure. It dictates decisions regarding user experience, functionality, economic models, and interoperability within the broader digital asset ecosystem. This strategy governs how value is created, exchanged, and managed at the user-facing level of a blockchain network.
Context
Current discussions often center on optimizing application layer strategies for scalability and user adoption, especially as new layer-1 and layer-2 solutions arise. The effectiveness of these strategies directly impacts a project’s viability and its capacity to attract and retain participants. Monitoring application layer developments provides insight into the growth and maturation of various blockchain ecosystems.
By deploying a bespoke application chain, Hydration eliminates fragmented liquidity and contract performance bottlenecks, creating a single-layer DeFi primitive.
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