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Avalanche is the latest smart contract platform to hit the market
And with a $42M raise in July and AVAX now trading 5x more than its sale price, it did so in style
But how does Avalanche stack up to similar networks in an already crowded smart contract platform market?
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And with a $42M raise in July and AVAX now trading 5x more than its sale price, it did so in style
But how does Avalanche stack up to similar networks in an already crowded smart contract platform market?
1/
Unlike Ethereum, @avalancheavax isn’t a single chain network
It’s a “network of networks” akin to Cosmos or Polkadot where various use-case specific chains (called subnets) can communicate with one another because they share a common underlying framework.
It’s a “network of networks” akin to Cosmos or Polkadot where various use-case specific chains (called subnets) can communicate with one another because they share a common underlying framework.
Avalanche in a way combines some of the design elements of Polkadot and Cosmos.
Like Polkadot, app-specific chains rely on validators that stake the network’s native token, meaning AVAX is privileged within its own system https://messari.io/article/avalanche-s-bid-for-the-smart-contract-market?utm_source=WilsonWithiam&utm_medium=leadtweet&utm_campaign=avalaunch
Like Polkadot, app-specific chains rely on validators that stake the network’s native token, meaning AVAX is privileged within its own system https://messari.io/article/avalanche-s-bid-for-the-smart-contract-market?utm_source=WilsonWithiam&utm_medium=leadtweet&utm_campaign=avalaunch
But like Cosmos, subnets don't have a shared security model. Each chain can rely on its own validator subset.
Therefore, a technical or economic failure on one subnet won’t necessarily derail another or the system as a whole. (although subnets can share validators in some cases)
Therefore, a technical or economic failure on one subnet won’t necessarily derail another or the system as a whole. (although subnets can share validators in some cases)
This multi-chain framework gives projects the flexibility to customize subnet features to best suit its intended use case
The tradeoff is that subnets' independent nature may not unlock Ethereum-level composability between other chains. (Intra-subnet composability is unaffected)
The tradeoff is that subnets' independent nature may not unlock Ethereum-level composability between other chains. (Intra-subnet composability is unaffected)
The DOT and ATOM comparisons make it clear that providing an easy way to launch custom & interconnected chains is no longer a differentiated approach.
Cosmos has a 1st-mover advantage. Polkadot has deep pockets. Both have developer traction.
How does Avalanche break the mold?
Cosmos has a 1st-mover advantage. Polkadot has deep pockets. Both have developer traction.
How does Avalanche break the mold?
For better or worse, Avalanche has a few characteristics that set it apart:
- A new family of leaderless consensus protocols
- No slashing penalties
- A stricter monetary policy
- A strategy for wooing Ethereum users that involves a “friendly fork” of Ethereum called @Athereum
- A new family of leaderless consensus protocols
- No slashing penalties
- A stricter monetary policy
- A strategy for wooing Ethereum users that involves a “friendly fork” of Ethereum called @Athereum
I breakdown all of these Avalanche characteristics, AVAX’s tokenenomics, and more in my latest piece https://messari.io/article/avalanche-s-bid-for-the-smart-contract-market?utm_source=WilsonWithiam&utm_medium=followuptweet&utm_campaign=avalaunch
For those looking to understand some of the tradeoffs for Avalanche, read @jadler0's thread here. He's an excellent blockchain critic and regularly provides thoughtful feedback on Ethereum and other networks. https://twitter.com/jadler0/status/1309207337031303169
In the end, Avalanche’s ability to grow its user and developer base will be the true determinant of success, as is the case with most networks. I’ll update this thread with Avalanche’s response (if or when) they make one.
