Avalanche is “an open-source platform for launching decentralized applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem.” Due to regulatory and geographical differences, financial markets worldwide are fragmented. Avalanche seeks to solve this problem by imagining an “Internet of Finance” where exchanging financial products and deploying digital assets is easy and unified, allowing one to trade cryptocurrencies, equities, alternative assets, and commodities all in one place.
It is the first smart contracts platform that confirms transactions in under one second, supports the entirety of the Ethereum development toolkit, and enables millions of independent validators to participate as full block producers. The testnet had over 1,000 full, block-producing nodes, breaking a world record.
In addition to supporting sub-second finality, Avalanche is capable of throughput orders of magnitude greater than existing blockchain networks (4,500+ transactions/second), and safety thresholds well-above the 51% standards of other networks.
One big difference between Avalanche and other decentralized networks is the consensus protocol. Over time, people have come to a false understanding that blockchains have to be slow and not scalable after seeing the existing blockchains in action. The Avalanche protocol employs a novel approach to consensus to achieve its strong safety guarantees, while achieving quick finality and high-throughput, without compromising decentralization.
Unlike other networks that force terms and conditions of network participation uniformly across the system, Avalanche empowers individuals and enterprises to easily create powerful, reliable, and secure applications and custom blockchain networks with complex rulesets or build on existing private or public networks that fit their use case.
Take, for example, a regulated financial institution wanting to issue digital assets. It’s simply not possible for them to do so compliantly in a system where they cannot control which nodes validate their network activity. In Avalanche, the same institution can achieve complete control over the virtual machine running their use case and the conditions of running a node on their custom sub-network.
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Over the 45-year history of distributed systems, there have only been three approaches to the consensus problem: Classical, Nakamoto, and Avalanche.
In the wake of Nakamoto’s work, the world still wanted a protocol with all of the benefits of Nakamoto consensus (robustness, decentralization) and all the benefits of Classical consensus (speed, scale, quick finality, and energy efficiency). Crypto’s own version of the proverbial, “have your cake and eat it too.”
Avalanche takes those revelations and combines them into a new protocol that attacks scaling, security, and speed at the absolute foundation of decentralized networks. Avalanche consensus shows that you can have the best of both Classical and Nakamoto without the downsides that come with either class of protocol.
Avalanche consensus allows up to millions of participants to validate while processing thousands of transactions per second. In the Avalanche family, protocols operate through repeated sub-sampled voting. “When a validator is determining whether a transaction should be accepted or rejected, it asks a small, random subset of validators whether they think the transaction should be accepted or rejected.”
Commonly, when transactions have no conflicts, finalization happens quickly. If conflicts exist, “honest validators” surround the transactions helping them enter into a positive feedback loop until all “correct validators” prefer that transaction. This process is what allows Avalanche Consensus to be “blazing fast” and finalize transactions in subsecond time. The Avalanche Consensus Protocol powers the Exchange (X) Chain, the default asset chain, and “enables the creation of new assets, exchanging between assets, and cross-subnet transfers.”
Avalanche also implements the Snowman Consensus Protocol, which “is a chain-optimized consensus protocol with high-throughput and total ordering” - two necessary components to performant smart contracts. Snowman Consensus underpins Avalanche’s Contract (C) Chain, which is a scalable, fast implementation of Ethereum’s smart contract engine.
Avalanche’s Currency: AVAX
Avalanche’s native token, AVAX, is a hard-capped, scarce asset that is used to pay for fees, secure the network through staking, and provide a basic unit of account between the multiple subnetworks created on the Avalanche platform.
It has a circulating supply of 76,937,055 AVAX, and a maximum supply of 720,000,000 AVAX. New AVAX is minted through staking, rather than proof-of-work mining. Users can keep their AVAX in the Avalanche Wallet.
Latest News and Partnerships
Voyager Digital Lists Avalanche (AVAX) As First U.S. Listing
U.S. users now have access to buy and trade AVAX commission-free on the Voyager app! Bringing the trading of AVAX to the U.S. is another step towards creating a global financial marketplace for Avalanche. Voyager is available to all U.S. residents (excluding N.Y.), and “The app facilitates orders using Voyager’s Smart Order Router, which connects to more than a dozen of the most trusted and secure crypto exchanges and gives users access to the largest crypto trading markets.”
Avalanche Expanding Liquidity Across its DeFi Ecosystem with Upcoming Launch of First USD Stablecoin, TrueUSD
TrueUSD (TUSD), a top-five fiat-backed stablecoin by market cap, will launch natively on Avalanche in Q1 2021. Adding a reputable and widely-used stablecoin like TUSD is not only a critical addition to the growing DeFi ecosystem on Avalanche but will also be a leap forward in the utility of stablecoins more broadly. By launching on Avalanche, TrueUSD users will be able to send and receive the stablecoin with sub-second finality, and transaction fees that are just fractions of a cent. For the first time, stablecoins will be moving like cash, rather than waiting extended periods of time for block confirmations or paying exorbitant fees for USD-denominated transactions.
Initial Litigation Offerings to Bring $10B Asset Class to Avalanche and Retail Investors for the First Time
Avalanche, Roche Cyrulnik Freedman LLP, and Republic Advisory Services are bringing the $10B asset class of litigation financing to the Avalanche blockchain through the creation of a first of its kind token, the Initial Litigation Offering (“ILO”), a blockchain-enabled litigation financing product open to all investors.
Litigation funding, also known as legal financing and third-party litigation funding, provides individuals who otherwise lack the necessary resources the funds needed to litigate or arbitrate a civil claim. ILOs raise the funding required to pursue litigation in these cases and tokenize an economic right in such claims. Each token indirectly represents a legal claim to a portion of the potential financial recovery which has been converted to a digital asset.
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