# Avalanche

### What is Avalanche?

Avalanche protocol is a multi-tiered blockchain model that enables the launch of customizable independent blockchains. Avalanche positioned itself as a scalability leader by offering a Directed Acyclic Graph (DAG)-like consensus algorithm that enabled high throughput and low latency, allowing thousands of transactions per second. 

Avalanche does not provide security; rather, it offers a **P-Chain** that serves as a platform for independent, API-compatible blockchains to connect with a marketplace of credible (surety-bonded) validators to run compatible blockchains. 

Avalanche also offers a **C-Chain,** allowing builders to deploy dApps instead of independent blockchains, and an **X-Chain,** acting as a decentralized exchange for Avalanche-compatible tokens.

{% hint style="warning" %}
The P-Chain serves as a marketplace for 'validators for hire' who need to buy and stake the subnet token
{% endhint %}

### How does it work?

1. A builder uses the Avalanche SDK to create a blockchain that is API compatible with the X-Chain and P-Chain.
2. A builder typically stakes AVAX on the P-chain, promoting itself as Avalanche compatible to attract 'validators for hire'. In most cases, ‘hired’ validators must stake on both the new chain and\
   the P-Chain layers, providing independent staking collateral for bad behavior on both. 
3. **Builders are on their own to launch and maintain their chain:**
   1. Must have enough locked value to prevent hostile takeovers
   2. Must recruit a diverse validator set to avoid centralization
   3. Must bootstrap an ecosystem from scratch
   4. Must build chain communication features to avoid community isolation

{% hint style="danger" %}
Launching a subnet on Avalanche has all of the problems of launching an independent L1 with more steps. 
{% endhint %}

### Pros & Cons of Avalanche Subnets

**The good:**

* ✅ sovereign and decentralized
* ✅ full value capture
* ✅ scale independently

**The bad:**

* ❌ slow to market (semi-accelerated by the SDK)
* ❌ must keep up with SDK updates
* ❌ have enough capital to ensure network takeovers are expensive, typically requiring fundraising
* ❌ bootstrap their own ecosystem with developer tooling and liquidity paths
* ❌ attract experienced Validators to avoid centralization
* ❌ must build interoperability features to avoid community isolation
* ❌ SDK is complex and intimidating for the new developer

### Canopy and Avalanche Comparison

<table><thead><tr><th width="201.2000732421875">_</th><th>CANOPY</th><th>Avalanche</th></tr></thead><tbody><tr><td><strong>Architecture</strong></td><td>✅ Peer-to-Peer</td><td>➖ Independent L1s</td></tr><tr><td><strong>Scaling Method</strong></td><td>✅ Every new chain horizontally scales Web3</td><td>✅ independently</td></tr><tr><td><strong>Builder Sovereignty</strong></td><td>✅ Progressive</td><td>✅ Full</td></tr><tr><td><strong>Ecosystem</strong></td><td> ❌ New</td><td>❌ Small</td></tr><tr><td><strong>Long range attack</strong></td><td>✅ Proof of Age</td><td>❌ No slashing</td></tr><tr><td><strong>Builder Difficulty</strong></td><td>✅ Quick to market</td><td>❌ Slow to market</td></tr><tr><td><strong>Builder</strong> <strong>Economic Security</strong></td><td>✅ Immediate</td><td>❌ Neglected / typically fundraising or grants required</td></tr><tr><td><strong>Builder Framework</strong></td><td>➖ Fork &#x26; Clone: Golang</td><td>❌ Complex with EVM compatibility</td></tr><tr><td><strong>Chain Resources</strong></td><td>✅ Exponential: Each new chain is additive</td><td>✅ Independent</td></tr><tr><td><strong>Builder Success</strong></td><td>✅ L0 Premium</td><td>❌ Typically lower FDV than sovereign L1s</td></tr><tr><td><strong>Native Interoperability</strong></td><td>✅ Permissionless</td><td>➖ Inner-Ecosystem only</td></tr><tr><td><strong>Builder Decentralization</strong></td><td>✅ Full/Progressive</td><td>✅ Full</td></tr></tbody></table>


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