The Avalanche Chain Protocol (Avalanche) was officially launched in 2020. It is a new type of blockchain. It is characterized by a new consensus mechanism Avalanche, also known as the "Avalanche Protocol", so Avalanche is also called the Avalanche Chain. Avalanche is different from most existing public chains. It is composed of three parallel public chains. Each of the three chains performs its own duties and jointly creates a platform that is fast and convenient for DeFi to carry smart contracts on it.
Does Avalanche have potential in 2024?
To analyze whether the public chain has potential, we can look at the "basic market" that analyzes the value of the public chain. The wider the development of Avalanche's entire public chain involves, the higher its potential and ability to "attract money" will be. The following is an analysis of Avalanche's potential in 2024 from three aspects.
1. RWA (Real World Asset): RWA has become a key development area for Avalanche in recent years. In the middle of this year, the Avalanche Foundation announced the launch of the Avalanche Vista plan, which will invest more than half a billion US dollars in investments including but not limited to stocks, credit, real estate and commodity markets. These investments will allow Avalanche to gain a foothold in traditional financial markets and further expand its scope of applications.
2. GameFi: Avalanche is one of the few large public chains willing to actively promote GameFi. In mid-2023, Avalanche launched the topical game “Shrapnel”. This game is a rare first-person shooter (FPS) game in the GameFi world, and the related token SHRAP is also online. Since 2022, Avalanche has been actively developing the GameFi ecosystem through its network. Even though the GameFi market is still sluggish at present, it is expected that the Avalanche market will occupy a certain position in the future.
3. DeFi: Although DeFi was regarded as the hardest hit area in the cold winter of 2023, for Avalache, DeFi is still an irreplaceable part of the public chain. In particular, its on-chain exchange DEX Traderjoe still accounts for more than half of Avalanche's DeFi trading volume. This shows that DeFi will still be a potential development area for Avalanche in the future.
Why is the Avalanche called the Avalanche Chain? What is avalanche consensus?
So what exactly is Avalanche Protocol? Why does this mean anything to the cryptocurrency community?
First of all, we must understand that the consensus mechanism is the core of a decentralized system, and the stronger the consensus mechanism, the stronger the blockchain; the faster the consensus mechanism, the faster the blockchain. The efficiency and value of the blockchain are based on this consensus mechanism.
Avalanche is a consensus mechanism known as the "avalanche chain". Its approach is to obtain multiple verification results through rapid and multiple sampling among hundreds or more nodes. As long as a certain result is verified multiple times If more than half of the results are obtained in the nodes, the correctness of the transaction or information can be confirmed.
This verification method is faster than Satoshi Nakamoto’s Proof of Work (PoW) relying on brute force, more secure than Byzantine Consensus Mechanism (BFTs), and more secure than Proof of Stake (PoS). The entire mechanism is like an "avalanche". After startup, the number of verification nodes accumulates like a snowball, so it is called the "avalanche mechanism". Without being limited to a single linear chain, the Avalanche blockchain is highly scalable.
The core of the Avalanche Protocol: Directed Acyclic Graph (DAG): The directed acyclic graph sounds very complicated, but the principle is very simple. In fact, it is a "no turning back" system, which can ensure that any authentication path will not change. It will be repeated, and no loop can be formed between any points. It will only move forward and complete the certification process of the entire consensus mechanism.
Avalanche’s 8 major developments in 2023
1. Avaissance Project: Avalanche is a blockchain platform designed to improve blockchain efficiency. Now, Avalanche is launching a new program that will provide an incentive program to more than 50 digital creators with NFT artists as the starting point. This project will be divided into two parts, one is Artist in Residence (AIR), and the other is the cooperative project Mona Lisa Initiative (MLI).
2. Artist in Residence (AIR): The AIR project will provide resource assistance such as funding, guidance, and specialized online seminars to more than 50 creators. These creators will publish corresponding works on Avalanche and receive extensive publicity and promotion. The AIR program will help drive innovation and creativity on the Avalanche platform. It will not only benefit the growth of participants, but also the growth and development of the entire Avalanche community.
3. Mona Lisa Initiative (MLI): In addition to the AIR project, Avalanche will also cooperate with the digital art DAO to launch the Mona Lisa Initiative (MLI) project. This activity aims to gift NFT to various digital art DAOs and promote communication and cooperation between DAOs and Avalanche. These NFTs will be created and issued on the Avalanche platform.
4. Ava Labs cooperates with web2 giants such as Alibaba Cloud and Amazon: Since 2022 is regarded as the first year of NFT, many giants have successively entered the NFT market from different angles, including Reddit, Starbucks and cooperation with Avalanche. Amazon, causing the market to repeatedly adjust its future outlook for Avax. Amazon Digital Marketplace is currently postponed to launch in mid-May, and new options will be embedded in the original official website. Initially only available in the United States, it will gradually open to other parts of the world, including Europe. About 15 NFT series will be available for purchase, but they can only be purchased with a credit card through an Amazon account.
In light of this, Ava Labs announced in a press release that it plans to add a subnet specifically for Amazon’s NFT program. In addition to the move, which demonstrates the growing interest in blockchain technology among major companies across a variety of industries, Ava Labs also becomes a member of the AWS Partner Network (APN), which enables Ava Labs to “help customers deploy on AWS Custom products that connect to over 100,000+ partners in over 150 countries.
5. Avalanche Cortina upgrade: launched on April 25: Avalanche has also recently undergone a Cortina upgrade, and the mainnet will officially be launched on April 25! This upgrade mainly has three major functional improvements:
X chain linearization: enabling faster development and more widely applicable innovation, while making Avalanche Warp Messaging (AWM) easier to integrate, exchanges will be able to support more tokens on the Avalanche X chain.
Batch delegation rewards: Optimize the reward distribution process for pledgers so that verifiers do not need to track rewards specifically through UTXO transactions. Instead, they process them in batches throughout the verification period and distribute rewards when they are not pledged, providing a better user experience.
Increasing the gas limit of C-Chain: will enable developers to deploy more complex Dapps on Avalanche's C-chain. To avoid increasing the amount of resources required to verify the main network, the gas target will remain at 15 million gas consumption every 10 seconds. quantity.
6. Evergreen Subnets: Evergreen Subnets are targeted at financial services companies and subnets with specific service needs. These subnets will help financial institutions make better use of blockchain technology and provide more efficient and secure financial services.
In summary: Avalanche, as an emerging blockchain platform, shows great potential through its unique avalanche consensus mechanism and multi-faceted application development. Whether in RWA, GameFi or DeFi, Avalanche is expected to occupy an important position in the future. With more cooperation and technology upgrades, Avalanche's future development is worth looking forward to.