Quick Breakdown
- Avalanche leaders see purpose-built blockchains replacing general networks for targeted applications.
- Specialized chains boost scalability, reduce congestion and enable custom features.
- Shift aligns with Web3 trends toward modular, efficient blockchain architectures.
Avalanche executives predict purpose-built blockchains will lead future development, outpacing general-purpose platforms like Ethereum and Solana. Emin Gün Sirer, Avalanche co-founder, shared this view during a recent interview, stating specialized chains address scalability limits and app-specific needs. These networks focus on single use cases, such as gaming or DeFi, delivering faster transactions and lower costs.
Avalanche’s long range strategy gains traction as institutions shift toward purpose built blockchains and real world asset tokenization. https://t.co/nmd8fHnYUg
— TheStreet (@TheStreet) December 18, 2025
Purpose-Built Chains Tackle Scalability Hurdles
Purpose-built blockchains dedicate resources to one function, avoiding the bottlenecks of multi-purpose networks. Gün Sirer noted that Ethereum’s congestion during peak demand shows that general-purpose chains struggle with diverse workloads. Avalanche’s subnets already enable custom chains, processing thousands of transactions per second without mainnet interference. Developers gain complete control over rules, fees, and consensus, fostering innovation in niches such as real-world assets and AI integration.
This model gains traction amid Layer-2 fatigue, where rollups add complexity without solving core issues. Projects like Celestia and EigenLayer support modular designs, but Avalanche positions subnets as production-ready. Institutional adoption rises, with firms building private chains for compliance-intensive sectors such as finance. Gün Sirer emphasized that this shift reduces reliance on dominant Layer-1s, thereby democratizing blockchain development. Data shows subnets handle over 1 million daily transactions on Avalanche alone.
Implications for Web3 Ecosystem Growth
The transition promises a fragmented yet interoperable blockchain landscape, connected via bridges and shared security. Critics worry about liquidity splits, but proponents argue specialization mirrors cloud computing’s success. Avalanche reports 500 active subnets, signalling momentum. As Web3 matures, purpose-built chains could onboard billions by precisely matching real-world demands. Regulators favour this for contained risks per chain.
Notably, the shift to specialized chains drives innovation, as seen with Circle’s acquisition of Interop Labs to accelerate cross-chain infrastructure and become a central hub for compliant multichain finance. Circle acquired Interop Labs’ team and IP to accelerate cross-chain infrastructure, enhance interoperability, and boost its Arc blockchain and CCTP. The acquisition integrates Axelar Network’s core developers into Circle, though Axelar Network and its AXL token will remain independent and community-governed. This move positions Circle to become the central hub for multichain internet finance, enabling seamless, compliant digital asset movement across blockchains.
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