App-Specific Rollup PMF - Does it Even Exist?
App-specific rollups (RollApps) currently face a critical question: do they have a viable Product-Market Fit (PMF)?
General-Purpose Rollups PMF
General-purpose rollups succeed because they effectively extend vibrant ecosystems with new capabilities while striving to remain an integral part of the same ecosystem. Developers value the combination of network effects, community support (grants, marketing, recognition), liquidity sources, and cost-efficiency. These factors significantly lower barriers for developers, ensuring that general-purpose rollups remain attractive and competitive.
Defining the Market for App-Specific Rollups
Developers typically turn to app-specific rollups when existing Layer 1 (L1) blockchains or general-purpose rollups fail to meet their specialized needs, such as greater throughput, unique economic models, tailored infrastructure, or specific virtual machine (VM) support.The market for app-specific RollApps closely resembles the smart contract developer community—typically small to mid-sized teams or individual developers with limited resources seeking specialized yet affordable and easy to operate solutions. Unlike well-resourced or highly-funded platforms such as dYdX or Hyperliquid, who may opt to launch their own L1 blockchain to potentially increase token valuation, these smaller developers prioritize affordability, ecosystem integration, and community support to scale their applications effectively.
The Dilemma of App-Specific Rollups
The fundamental dilemma facing app-specific rollups is a balancing act between two critical needs: on one side, developers want to remain part of a thriving ecosystem with low operational costs, strong community support, and abundant liquidity. On the other, they require specialized infrastructure solutions to meet their application's unique performance, economic, or virtual machine (VM) requirements.Ethereum illustrates this dilemma clearly. Developers often initially turn to general-purpose rollups like Arbitrum or Optimism, seeking to address scalability and cost-efficiency. However, when specific technical needs exceed what these solutions can provide, developers face limited choices—either expensive Rollups-as-a-Service (RaaS) offerings (often starting at $3,000 per month for production deployments) or highly complex DIY setups. Both options are typically unsuitable for small or resource-constrained teams.Other prominent Layer 1 ecosystems amplify this issue further since they currently lack any accessible rollup infrastructure, effectively leaving developers without any viable network extension solution.
The True PMF for App-Specific Rollups
The genuine Product-Market Fit for app-specific rollups lies precisely within addressing this market gap. Developers need a solution that lets them seamlessly extend their choice of L1 ecosystems at significantly lower costs without compromising the core benefits of community backing, liquidity, and cost-efficiency.
The Path Forward
The future of RollApps hinges on successfully meeting this underserved market need. The opportunity lies in creating infrastructure that allows every successful blockchain ecosystem to cost-effectively and easily extend its capabilities and liquidity sources.
Universal Settlement Layer. Soon.