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Application Layer Upgrade

Definition

An application layer upgrade refers to an enhancement or modification implemented at the highest level of a blockchain protocol stack. This type of update specifically addresses the software applications and smart contracts that operate directly on the blockchain, improving their functionality, security, or efficiency. Such upgrades can introduce new features, optimize existing decentralized applications (dApps), or rectify vulnerabilities within the user-facing components of a digital asset system. The objective often involves enhancing user interaction and expanding the utility of the underlying network.