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 terminated its testnets (Denali, Everest) and launched the mainnet. The platform supports the creation of new instances of the Avalanche Virtual Machine (AVM) run by the X-Chain or the Timestamp virtual machine (TVM). Avalanche allows users to generate, define and launch their own public or private 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 (for now it is 2000 AVAX). In the Avalanche platform users must stake AVAX tokens for validating the Default Subnet. These tokens are going to be used for staking and validating the network. 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 a node and the validation process as 2 to 52 weeks. Validators should always check out the uptime of their nodes in order to merit from staking rewards. A node should be uptime for at least 60% of its life for claiming its rewards. The maximum duration of continuous validation process is one year. It is possible to stake locked tokens.
If a validator wants to leave the Default Subnet, staking rewards are burned. For staking tokens should be transferred to the P Chain from the X Chain. 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 spesified account at the time of stting staking processes. 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). It is important to know that if the validators node uptime is <60% no one can receive any rewards. Of note, delegators do not send their tokens to elsewhere they are always kept at their own wallet.
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 testnet data, and one week of mainnet data Avalanche platform promises almost all you need in terms of creating digital assets, deploying digital smart contracts, making DeFi projects and launching dApps beyond fast, precise and secure transections. Nowadays, after the mainnet launch, we are waiting for successful Defi and other projects.
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/
