Avalanche platform is a network of custom blockchains which allows also generating independent blockchains. It is a new feature in the ecosystem since recent platforms does not allow much to configure and generate newer blockchains. Furthermore, current platforms does not support enough dApps and DeFi projects. The Avalanche platform allows developers to generate both their own private and public blockchains. It is wide open to developments and the platform aims to support and recruit most of the current and future DeFi apps and projects. The platform provided a successful performance in its test net in June 2020. A final test net is scheduled in a couple of days and latest features of the platform will be tested before the main net launch. The Avalanche platform has got a native token so called ‘AVAX’ which is on its way to the global Tier 1 cryptocurrency exchanges.
How does the platform work?
Avalanche platform is at its final test stage before launching. The platform supports only the creation of new instances of the Avalanche Virtual Machine (AVM) run by the X-Chain or the Timestamp virtual machine (TVM) for now. However, in near future, Avalanche will allow users to generate, define and launch their own blockchains.
In Avalanche every blockchain is validated by a subnetwork consisted of a set of validators. When a Subnet is created, a threshold and a set of addresses of the keys are specified. The addition process of a validator to a specific subnet requires the presence of control keys and their signatures. Creation of a subnet starts with creating users with ‘keystore.createUser’. After this step the ‘platform.createAccount’ generates a new private key and stores it for a user (1–3).
How does the validation processes realize?
In Avalanche validators identify others via their node IDs. The addition process of a validator to the Default Subnet requires an account with a sufficient balance of AVAX tokens. In the Avalanche platform users must stake AVAX tokens for validating the Default Subnet. These tokens are going to be used for staking and also for paying transaction fees. When a transaction is issued for joining the Default Subnet, the starting and terminating dates of staking should be specified. The platform determined the minimum and maximum duration for validation process of the Default Subnet as 24 hours to one year. Validators have a chance to re participate to the Default Subnet if they leave the system. The maximum duration of one year is valid for continuous validation processes.
If a validator wants to leave the Default Subnet, staked AVAX tokens are transferred to the specified account in the transaction which added the validator to the Default Subnet. The platform defines this account as the ‘destination account’. The validators are rewarded regarding their performance in validation job (i.e. if they are sufficiently responsive and they respond correctly they merit more rewards). The validation rewards are sent to the same account as the staked AVAX tokens. In Avalanche validators’ stakes are supposed to be never slashed, the creators state that they will always receive their stake back at the end of their validation period.
Is it possible to delegate tokens?
Furthermore, in Avalanche, it is also possible to delegate tokens to a validator for earning. There is a delegation fee rate which can be described as the percent fee that a validator charges when others delegate stake to the validator. At the end of delegation period rewards are shared between the validator and delegator, and the delegator earn the majority of the reward (3–4).
Is it possible to deploy smart contracts or to create digital assets?
In the Avalanche platform the C-Chain acts like Ethereum Virtual Machine (EVM) and allows users to deploy smart contracts. Smart contracts can be generated with Avalanche in a few steps; setting up MetaMask making a connection with Avalanche C-Chain, funding the C-Chain address with the AVAX Faucet and by using Remix connecting MetaMask and deploying a smart contract.
The Avalanche platform is versatile and allows to create both fixed-cap and variable-cap digital assets. Sets of addresses that can mint more units can be pre-specified. Thus, the system provide increased security and prevents unilaterally minting more assets. It also provides flexibility (4–6).
In conclusion, according to available test net data, Avalanche platform promises almost all you need in terms of creating digital assets, deploying digital smart contracts, making DeFi projects and launching dApps. After the main net launch we will experience in the ecosystem whether it will provide a story of success.
References
1. Why Avalanche? https://www.avalabs.org/why-avalanche
2. Create a blockchain. https://docs.avax.network/v1.0/en/tutorials/create-a-blockchain/
3. Create a Subnet. https://docs.avax.network/v1.0/en/tutorials/create-a-subnet/
4. Deploy a smart contract. https://docs.avax.network/v1.0/en/tutorials/deploy-a-smart-contract/
5. Create a fixed-cap asset. https://docs.avax.network/v1.0/en/tutorials/fixed-cap-asset/
6. Create a variable-cap asset. https://docs.avax.network/v1.0/en/tutorials/variable-cap-asset/
