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.
The P-Chain serves as marketplace for 'validators for hire' who need to buy and stake the subnet token
How does it work?
A builder uses the Avalanche SDK to create a blockchain that is API compatible with the X-Chain and P-Chain.
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.
Builders are on their own to launch and maintain their chain:
Must have enough locked value to prevent hostile takeovers
Must recruit a diverse validator set to avoid centralization
Must bootstrap an ecosystem from scratch
Must build chain communication features to avoid community isolation
Launching a subnet on Avalanche has all of the problems of launching an independent L1 with more steps.
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
Architecture
✅ Peer-to-Peer
➖ Independent L1s
Scaling Method
✅ Every new chain horizontally scales Web3
✅ independently
Builder Sovereignty
✅ Progressive
✅ Full
Ecosystem
❌ New
❌ Small
Long range attack
✅ Proof of Age
❌ No slashing
Builder Difficulty
✅ Quick to market
❌ Slow to market
Builder Economic Security
✅ Immediate
❌ Neglected / typically fundraising or grants required
Builder Framework
➖ Fork & Clone: Golang
❌ Complex with EVM compatibility
Chain Resources
✅ Exponential: Each new chain is additive
✅ Independent
Builder Success
✅ L0 Premium
❌ Typically lower FDV than sovereign L1s
Native Interoperability
✅ Permissionless
➖ Inner-Ecosystem only
Builder Decentralization
✅ Full/Progressive
✅ Full
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