It’s been quite busy, since the launch of mainnet of Avalanche Platform. Initial Litigation and Private Securities offering Dex’s, Stablecoins, Synthetics and Defi, Prediction Markets etc that are only the tip of the iceberg. The following are a few of the new statements and enhancements to Avalanche’s ecosystem, along with a brief explanation of the program’s benefits.
Avalanche provides unparalleled decentralisation through its influential consensus protocol, processing 4500 transactions per second per subnet at faster speeds than Visa and offering subsecond finality at low gas rates.
In Avalanche there are currently 3 Blockchains. One of them is the C-Chain, which is completely compatible with Ethereum’s tools and uses the EVM. The C-Chain allows you to do everything on Ethereum. It is very easy to port existing DAPPs to Avalanche so that they can benefit from Avalanche’s advantages over Ethereum.
There are thousands of subnets within Avalanche that combine to form an interoperable network of many blockchains. It takes advantage of Avalanche’s revolutionary consensus protocol to provide a distributed, global, and secure digital economy. While being able to satisfy regulatory requirements, it offers unprecedented degrees of decentralization.
A core innovation of this project is the division of the essential systems into three chains, the use of an infrastructure layer (Layer 0) instead of Layer 1, and the use of a novel proof of stake consensus mechanism
In addition to solving Ethereum’s scaling issues and enabling sub-1second settlement times and transaction fees well below $1, Avalanche claims that these mechanisms will enable ETH2 to transform from proof of stake into Proof of stake while solving scaling and Proof of stake problems.
Learn Essential of Avalanche System(s):
It gives admittance to the AVAX Ecosystem for making new local resources and exchanging them. This blockchain is an Avalanche Virtual Machine (AVM) utilized for:
- Making new local AVAX resources, and exchanging them.
P-Chain – Platform Chain
- Creating validator subnets and staking of delegators used for Chain Validation and Custom Chains
The three chains work together, with each chain tuned for flexibility, speed, and security, allowing developers and users to interact with the ecosystem at any level they desire, based on the specific needs and use cases. X-Chain, P-Chain and C-Chain assets can be transferred via the AVAX native wallet, where a cross-chain swap can then be performed between the chains.
Besides building dApps on the three main chains, developers can also create their Virtual Machines, Custom Blockchains, and even mint native ‘smart assets that can be traded under predefined rules.
What’s the difference between avalanche ecosystem and Ethereum?
There is a lot of development happening in the blockchain space, with a great deal of experimentation and new ways to deal with a couple of normal issues that the ‘heritage’ layer 1 chains like Ethereum are confronting. Torrential slide, Polkadot, and Cosmos are Layer 0 conventions that, through different cycles, interface the different blockchains worked in those organizations together. Multiple chains are often created for a single blockchain to optimize performance because they can be created for each use case/to execute major tasks within the network and then bridged together to communicate.
In contrast, Ethereum is what is known in the traditional sense as a base layer 1 protocol on top of which assets can be minted and other applications created. Ethereum’s smart contracts have significantly influenced crypto and decentralization. It’s the lack of scalability and specialization with the Ethereum network that many users and developers complain about since it has to satisfy multiple user expectations simultaneously, which affects efficiency & optimization.
It is important to understand how Classical Consensus & Nakamoto Consensus work together first to understand why Avalanche takes the stance it does. Classical consensus is a democratic system where multiple validators represent a group through selection. During this scenario, each validator must determine if a transaction is valid after it is submitted and then communicate that determination to the other validators to arrive at a unanimous or majority decision. With each additional validator in a decentralized system, the number rises to 62, so the confirmation time for a transaction increases exponentially.
You can view the list of Avalanche projects here. Listed below are some of the main protocols and projects being used on Avalanche.
- Through the initial community airdrop and ongoing liquidity mining programs, Avalanche
- Pangolin is 100% community-owned and is currently the largest TVL Defi platform.
- Tether has just announced native integration with Avalanche network, the largest stablecoin by market cap in crypto at $62.3B
USDC (USD Coin)
- It recently announced plans for native integration on June 29, 2019, making USD Coin the second largest stable coin.
- Providing a launchpad for projects on AVAX, the team works with and is advised by the Ava Labs team
- The second highest yield on the Avalanche blockchain comes from aggregating yields from a variety of vaults on the AVAX C-Chain
In terms of market penetration, Avalanche is a relatively new player, but after strong pushes and guidance from Ava Labs, they have quickly gained traction in the Smart Contract Platforms space. In addition to Polygon, Polkadot, Solana, and Cosmos, which have ecosystem-wide market caps of $10B or more, Terra follows in 7th place by having a market cap of $5.6B. As impressive as it has been, Avalanche’s market cap of $4.2B still leaves plenty of room for growth.