Another contender is joining the ring of decentralized finance (DeFi) platforms sparring to win market share from the Ethereum ecosystem.
Ava Labs is launching its Avalanche blockchain next Monday, Sept. 21. The upcoming launch comes on the back of $60 million in funding, $45 million of which came from a July 2020 public token sale and private sale lead by Mike Novogratz’s Galaxy Digital, Bitmain and Initialized Capital.
“Avalanche aims to enable new systems defined by velocity, efficient use of capital, and innovation in new products and services that aren’t possible with the current wait times to finalize transactions,” Ava Labs CEO Emin Gün Sirer told CoinDesk. “DeFi is certainly part of our motivation in the short term, with our long-term sights set on traditional finance.”
Avalanche is a proof-of-stake blockchain which the team at Ava Labs claims can process 4,500 transactions per second even without the security tradeoffs usually associated with low-latency chains. Its novel consensus mechanism is a fusion of a directed acyclic graph structure and “repeated subsampled voting,” which Sirer called the “core innovation.”
The blockchain’s architecture consists of the primary network and so-called “subnets” – secondary, uniquely-tailored blockchains that are supported by Avalanche’s main network.
These subnets can be curated for specific use cases and designed to fit the needs of their designers (they can be public or private, for instance). Avalanche validators, those who stake the network’s native token, AVAX, to process transactions, can choose to validate or ignore transactions from any given subnet. Sirer told CoinDesk that a minimum of 2,000 AVAX is needed to stake a validator node.
Avalanche documentation indicates that some subnet validators may be subject to know-your-customer (KYC) requirements per their respective jurisdictions and may require licensing to operate.
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