Avail is providing a verifiable data availability layer through its core product, Avail DA, enabling any blockchain to scale easily. Whether it is a Layer 1 or Layer 2 blockchain, it can integrate with Avail DA to ensure that its transaction data is always available - a key component to achieving unlimited scaling. Avail has established partnerships with five major Ethereum Layer 2 platforms - Optimism, Arbitrum, Polygon, Starkware, and zkSync.
Avail's native token AVAIL helps secure chains that use Avail and allows token holders to earn rewards through staking. By staking AVAIL tokens, participants can not only earn rewards, but also contribute to the security and growth of a network that is becoming increasingly important in multiple fields such as gaming, decentralized finance (DeFi), and decentralized streaming platforms. Avail's "stake once, protect many" approach enables nominators to support the entire ecosystem as well as the next generation of applications.
Staking on Avail: NPoS Chain
Avail uses the Nominated Proof of Stake (NPoS) consensus mechanism inherited from the Substrate ecosystem. NPoS is a variation of the Proof of Stake (PoS) consensus algorithm where token holders can nominate validators to secure the network on their behalf. Validators are responsible for verifying transactions, producing blocks, and maintaining the integrity of the blockchain.
To ensure that the chain remains operational in extreme situations, Avail uses a combination of the BABE (Blind Assignment of Blockchain Extensions) and GRANDPA (GHOST-based Recursive Ancestor Derivation Prefix Protocol) consensus mechanisms. BABE is responsible for block generation, while GRANDPA is responsible for finalizing blocks, ensuring the security of the chain and resolving forks.
Staking plays an important role in the NPoS consensus mechanism. By staking AVAIL tokens, users contribute to the security of the network and are rewarded for their participation. The more tokens staked, the more secure the network is, as malicious actors need to obtain a large number of staked tokens to successfully attack the network.
When users stake their AVAIL tokens, they are effectively lending their tokens to validators, who use them to secure the network. In return, stakers receive a portion of the rewards earned by validators based on their active stake percentage. This incentivizes users to stake their tokens and actively participate in the security and governance of the network.
Staking Options: Nomination Pools and Validators
When staking on Avail, users have two main options: nominate validators directly or use a nomination pool. Each option has its own advantages and considerations.
Nominating Validators: When nominating validators, users can directly rank and prioritize the validators they want to support. This ranking process makes staking on Avail more efficient compared to non-NPoS chains. Directly nominating validators allows users to have more control and involvement in the security of the network than nominating pools.
Nominating Pools: Nomination pools are a simpler and more convenient way to stake, especially for users who don't want to spend a lot of time and effort selecting and managing validators. By joining a nomination pool, users can delegate their tokens to a pool, and the pool manager is responsible for selecting and managing validators. In this way, users can still receive staking rewards without having to directly participate in the selection and management process of validators.
Advantages of nomination pools
Simplified management: The management of the nomination pool is the responsibility of the pool manager, and users do not need to spend time and energy selecting and managing validators.
Reduced risk: By dispersing tokens to multiple validators, the nomination pool can reduce the risk of a single validator failing.
Stable income: Nomination pools usually select multiple high-performance validators to ensure that users can receive stable staking rewards.
Considerations for nomination pools
Management fees: Nomination pool managers usually charge a certain management fee, which may affect the actual income of users.
Transparency: Users need to trust the managers of the nomination pool and may not fully understand the selection and management process of validators in the pool.
The future of Avail
As blockchain technology continues to develop, data availability and scalability will become key factors in determining the success of blockchain. Avail, through its innovative Avail DA product, provides a powerful and flexible data availability layer to help blockchain achieve unlimited scalability.
In addition, Avail's NPoS consensus mechanism and staking system provide users with a variety of ways to participate in network security and governance. Whether by directly nominating a validator or joining a nomination pool, users can choose the most suitable staking method based on their needs and preferences.