A Quick Overview of Avalanche (AVAX) and Why You Should Be Paying Attention
This article is the contents of a tweet thread seen below but in article form to make it easier to read.
1/ Avalanche $AVAX, a few tweets to pique your interest but could be life changing for many Avalanche is a platform of platforms, enabling anyone to create tailor-made application specific blockchains and benefit from the revolutionary Avalanche consensus
2/ In that regard it’s similar to platforms such as Polkadot $DOT and Cosmos $ATOM but with higher throughput, sub second finality, ability to use multiple custom vms and can scale to millions of validators with their revolutionary consensus offering unparalleled decentralisation
3/ I spent several months researching each of them and provided a comparison in the article below so others could benefit. (There is also links to 3-part series on each of them for even more info if required)
4/ A few months since the above article and the Avalanche ecosystem is rapidly expanding with Private Securities, ILOs, DEX’s, Synthetics, Stablecoins, Prediction Markets, and more, and all just 4 months since the launch of mainnet.
5/ Avalanche consensus combines the benefits of Nakamoto consensus (robustness, scale, decentralization) and all the benefits of Classical consensus (speed, quick finality, and energy efficiency) without the disadvantages.
6/ Ted Yin the first author of HotStuff (used in Facebooks Libra) and is the fastest classical consensus protocol. Rather than continue to work on that he went on to be Co-founder & Chief Protocol Architect at Ava labs to work on Avalanche, the biggest Breakthrough since Nakamoto
7/ Why is it important to offer a heterogeneous interoperable network where custom application blockchains can be built? Each blockchain has their strengths and weaknesses. Rather than have a general blockchain to try and meet every requirement and developers having to compromise
8/ Instead custom blockchains can be built which are tailer-made for that task. Want a blockchain that specialises in payments use x, want a blockchain that specialises in compute / smart contracts use y, want a blockchain that specialises in IOT use Z
9/ Your application may require all 3 of those and can then interoperate seamlessly between them on the same platform ensuring each part performs optimally rather than having to compromise on one.
10/ Avalanche was built with serving financial markets in mind. It has native support for easily creating and trading digital smart assets with complex custom rule sets that define how the asset is handled and traded to ensure regulatory compliance.
11/ The assets could represent financial instruments such as equities, bonds, debt, real estate, or anything else. Offering the best place to build DeFi applications but also the traditional finance market, where the derivatives market alone is worth a staggering $800+ trillion.
12/ Avalanche’s C-Chain is a smart contract chain that uses the EVM and is 100% compatible with existing Ethereum tooling. Everything you can do on Ethereum you can do on the C-Chain with the added benefit of 1000’s of tps, sub-second finality and low fees.
13/ Existing Ethereum DAPPs can easily be ported over and use all the existing tooling such as Metamask / Truffle etc making it easy for existing Ethereum developers to build on Avalanche. The Ethereum bridge is due to be released later this month.
14/ It’s not limited to just the EVM though and migrating DAPPs from Ethereum, any custom VM can be used. Allowing projects from any blockchain to ultimately be easily ported over and benefit from the performance, decentralisation, low fees and customisation Avalanche offers.
15/ $AVAX is a fixed capped supply token like $BTC which creates scarcity and won’t suffer from the continuous dilution through inflation like other staking platforms. Avalanche makes an excellent payment platform with VISA throughput speeds and low latency and cheap fees.
16/ Transaction fees across all the blockchains in the Primary network, fees for creating and minting of assets, creation of blockchains and the creation of subnets are all paid in AVAX which are burned, reducing total supply.
17/ Enterprises can create their own permissioned subnets if they need for regulatory purposes or require validators hold certain licenses or located within a certain jurisdiction. Unlike Enterprise deployments of permissioned forks of Ethereum where the token ETH isn’t used
18/ AVAX is one of very few projects where enterprise use still provides utility for the token. All validators of any subnet have to validate the primary network and stake a minimum of 2000 AVAX. In addition, subnet and blockchain creation fees are paid in AVAX which are burned
19/Polkadot in comparison has 10% yearly inflation, in 2050 the supply of DOT will have increased from 1 billion to 16 Billion. If the price of DOT,ETH and AVAX stayed the same this is how their market cap would look in 2050:
DOT: $250 Billion
ETH: $157 Billion
AVAX: $8.4 Billion
20/ An Ethereum Genesis holder who bought $ETH at $0.3111 had hands of steel whilst the price soared to highs of $1433, a 4606x on their investment Everyone has their limits though and sold a 1/3 of their ETH to participate in the $AVAX ICO (max allowed)
https://etherscan.io/address/0xd9b783d31d32adc50fa3eacaa15d92b568eaeb47
21/ Staking offers rates of between 9.32% and 11.1%, especially when the price of AVAX is likely to rise over time due to the above, making it an excellent long-term investment and no risk of slashing and losing your funds like other staking protocols
22/ There are currently 786 and growing block producing validators, importantly the vast majority participating in consensus validating a transaction I run a validator where my $AVAX is locked up for a year.
23/ Speed is more than just tps, equally important is latency
Bitcoin has finality of 60 mins
Ethereum 2.0 is 6 mins
Polkadot is 60 seconds (60 mins to external chains)
Avalanche its sub 1 second, immutable and completely irreversible whilst also being able to process 4500 tps
24/ See why $AVAX has the potential to be an incredible store of value and investment
But not only that but offers VISA level throughput, sub second finality, highly customisable platform for blockchains to build on to enable mass adoption of blockchain
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