Avalanche is able to achieve "small lotus talents showing sharp corners" in the short term. In addition to relying on talent advantages and capital strength, Avalanche is also inseparable from its inherent advantages.
First of all, Avalanche has a very outstanding underlying advantage.
Everyone knows that for the public chain, the quality of the underlying network is the key and foundation, and it is even sufficient to determine the future development direction of this public chain. Compared with other public chains, the biggest feature of Avalanche lies in its unique consensus mechanism. Under the leadership of Professor Gün of Cornell University, the Avalanche team designed a new consensus mechanism based on random sampling and metastable decision-making . The uniqueness of this consensus is that it can maximize its strengths and avoid weaknesses. It not only takes into account the advantages of the "classic Byzantine consensus protocol" that relies on communication transmission and the "Satoshi Nakamoto consensus protocol" that relies on proof-of-work to create a chain structure, it also solves the problem at the same time. The inherent weak scalability and robustness inherent in the "Classic Byzantine Consensus Protocol" and the problems of high latency, low throughput, and excessive resource consumption in the "Satoshi Nakamoto Consensus"
The advantage of this consensus mechanism is mainly reflected in Avalanche's unique transaction confirmation method. After a transaction is broadcast to the Avalanche network, if the transaction is valid, the verifier will undergo a "repetitive random sampling" process, that is, a part of the system verifiers will be randomly selected to participate in block verification. If most nodes have the same description of the event, it is judged to be true; otherwise, the content of the event is switched, and the sampling is repeated until the end.
The advantage of the consensus mechanism is also the performance advantage of Avalanche, and having a performance advantage means that it can give users a better experience. For the majority of developers and ordinary users, Avalanche does not have high chain operation costs, and there is no slow transaction confirmation time. If you use Avalanche, the cost and time of deploying or using DeFi applications will be greatly reduced. In contrast to Ethereum, after the EIP 1559 upgrade, the gas price of Ethereum increased instead of falling. An ordinary transaction on the chain often requires tens or even hundreds of dollars in gas fees. The terrible on-chain experience of Ethereum has undoubtedly led to the rapid rise of emerging public chains represented by Avalanche.
Secondly, Avalanche provides ample ecological incentives.
In the track of the public chain, there is a saying that has been circulating for a long time: "To engage in ecology, you must be willing to spend money". As the saying goes, it's not rough. All fields need to be invested and laid out in the early stage to develop, and the world of DeFi is no exception.
Presumably, Avalanche's team had also figured out this early. In order to promote the ecological outbreak, it officially launched
an incentive plan called
"Avalanche Rush" . According to the official introduction of the plan, the Avalanche ecological TVL will usher in a skyrocket from August 18, 2021, with an incentive of up to US$180 million. In this way, the vast majority of new users who have only recently entered the Avalanche ecosystem will come with the mentality of "a rush of 180 million US dollars in incentives".
For the majority of ordinary users, the way to share the 180 million US dollars is also quite simple, with almost zero threshold. You only need to provide liquidity in the officially mentioned cooperation projects . Avalanche will use AVAX (Avalanche's generation) according to the corresponding rules. Tokens are distributed to all liquidity providers in the form of rewards.
In addition to the highly attractive incentive plan, the successful upgrade of the cross-chain bridge is also an important reason for the outbreak of the Avalanche ecosystem.
In the early February of 2020 year, Avalanche launched the first-generation cross-chain bridge AEB (Avalanche-Ethereum Bridge). The overall performance of AEB is remarkable, but as the first-generation product, the bridge is in terms of safety, cross-chain speed, and cost. There is still a lot of room for improvement. Therefore, after half a year, Avalanche officially released a new generation of cross-chain bridge product AB (Avalanche Bridge) on July 29 after extensively listening to user suggestions.
AB is built on the basis of Intel SGX technology. Unlike the more mainstream contract-custodial cross-chain bridges currently on the market, AB does not use smart contracts to manage cross-chain funds. Instead, it generates two ordinary Ethereum and Avalanche addresses in the trusted environment of Intel SGX. This will complete the management and casting of cross-chain funds .
It is worth mentioning that the AB scheme can largely get rid of the security risks inherent in the contract itself. But for this reason, the feasibility of the entire cross-chain system will rely heavily on Warden's integrity. However, for the current situation, Avalanche has disclosed the true identities of the four initial Wardens, namely Fulgur Lab, BWareLabs, Halborn and Ava Labs. You don't need to worry too much about the integrity issue for the time being. From the perspective of cross-chain execution speed and related costs, AB has also been significantly improved compared to the previous AEB. At present, a complete transaction of "cross-Ethereum-Avalanche" takes about 6-9 minutes. As for fees, because AB’s cross-chain mechanism uses ordinary addresses, the complexity of transactions will be much lower than contract-type transactions, and the specific fee level will be closer to the regular transfer transaction fees.
The successful upgrade of the cross-chain bridge is of great significance. It successfully opened up the channel from the Ethereum ecosystem to the Avalanche ecosystem, providing unlimited opportunities and possibilities for the future development of Avalanche.
The last and very important point is that the path of the exchange's C chain is fully opened up.
If the cross-chain bridge AB opens the entrance of the DeFi world to the Avalanche ecology, then the path of the exchange C chain fully opens up the entrance of CeFi to the Avalanche ecology.
As mentioned above, in order to further liberate the network performance, Avalanche adopts the structure of X chain, C chain, P chain, and "three chains all in one". This structure can be called a pioneering work, but it has caused a drawback that cannot be ignored: in order to learn this structure, users have to pay a relatively large learning cost. Moreover, the previous ecosystem of the C chain is not yet complete. If users want to transfer funds between these three chains, they must execute through the official website interface. They must also deal with the address and format changes involved between different chains. The overall process is more complicated. .
In order to effectively improve this situation, especially to satisfy those users who are accustomed to depositing funds in centralized exchanges, but are gradually interested in the development of DeFi, Avalanch is gradually opening up channels for major exchanges to directly withdraw cash to the C chain. Up to now, Avalanche has successfully opened up the withdrawal path of Binance, OKEx, Gate.io | Official Website of Gate.io | Bitcoin Exchange | Bitcoin Price | Crypto Exchange | Cryptocurrency Exchange, Matcha and other exchanges, accumulating precise energy for its rapid rise in the future .
Avalanche's token: AVAX.
After talking about the core advantages of Avalanche, let's talk about Avalanche's exclusive token AVAX.
AVAX sets the upper limit of token supply at 720,000,000 (720M) tokens. Among them, the genesis block will generate 360 million AVAX tokens, and the remaining 360 million tokens will be minted following the token issuance formula.
This model chooses a simple emission function for AVAX, that is, a model that uses an emission curve model similar to that of Bitcoin at the current stage to achieve a limited circulation supply, taking into account reasonable circulation and the entry of new tokens. By adjusting the control conditions, the pledge for the longest period of time will generate an additional 11.11% of token minting, thereby incentivizing stakeholders to invest in the long-term. Due to the existence of the upper limit of supply, the release mechanism can still ensure that the number of AVAX tokens will not exceed 720M regardless of governance changes.
As the native token of Avalanche, AVAX has very rich application scenarios. It can be used as a peer-to-peer (P2P) value transmission, and it can also be mortgaged to maintain network security. At the same time, users can also use AVAX to pay for calculations, storage and smart contract operation costs, and to pay for the creation of new independent and affiliated blockchains .
As soon as many new public chains have emerged, people in the industry are accustomed to comparing them with Ethereum. When it comes to Avalanche, it is also inevitable.
Compared with Ethereum, Avalanche has significant advantages such as high performance, high capacity, and low handling fees. It also has an excellent performance of supporting 6000 transactions per second. However, unlike many new public chains that are murderous as soon as they go online and vow to compete with Ethereum, Avalanche does not regard itself as the so-called "Ethereum killer." Compared to "replacement", Avalanche hopes to achieve a "win-win" state. And this precisely reflects the pattern and philosophy of his team.
At present, with the fierce advancement of DeFi and the technological upgrade of Avalanche, more and more assets can be transferred to Avalanche through cross-chain bridges to complete transactions. It is precisely because of this that Avalanche can have the effect of "going on par with Ethereum", thereby greatly reducing the congestion of Ethereum.
We expect that the future of Avalanche will get better and better.