Avalanche and AVAX: 6 Reasons Why They Became The Breeding Ground of Cutting Edge DeFi Innovation by@benhodlin

Avalanche and AVAX: 6 Reasons Why They Became The Breeding Ground of Cutting Edge DeFi Innovation

Ben Knaus  HackerNoon profile picture

Ben Knaus

Chief Growth Officer @ Sch0lar.io Merging Ed-Tech and Blockchain via Avalanche πŸ”Ί Member of Forbes Technology Council

Two of my friends seemed puzzled this past summer when I would mention how Bullish I was on Avalanche. Back then AVAX was hardly in the limelight, hard to acquire, and sitting around $14.

Flash forward to today both of those friends are AVAX adopters and Hodlers. They commonly use Trader Joe (Avalanche native DEX) as their DEX of choice for ease of use.

Back when I first explained why I was Bullish on Avalanche I explained a bit about AVA labs: AVA Labs is the entity behind Avalanche (AVAX). And their mission is:

Making it simple to launch decentralized applications on the Avalanche public blockchain, while also empowering individuals and institutions to digitize all the world’s assets on one open, programmable platform.

*For full transparency I am a part of a project building on the Avalanche ecosystem, but this experience has done nothing but put unwavering faith in the ecosystem.

Seeing the support AVA labs lends new projects is amazing and this creates even stronger bonds within the community.

So, with that here are 6 reasons Avalanche has become one of the top ecosystems in the digital asset space, and at the same time why I look at these bullet points as the foundation for continued growth and true network effect.

  • Transaction finality speed and affordability: Avalanche is the fastest blockchain-based on finality and the fastest growing based on usage. Avalanche boats a TPS of 4500 TPS, which compared to Ethereum has a TPS of 15-30. On top of the fast speed, users can participate and not pay the exorbitant gas fees of Ethereum. Currently, the Average cost of a Transaction on the AVAX network is about $0.14 compared to the Average of an Ethereum Gas fee on Uniswap of $94 as of today.) As cited from Gwei to USD Ethereum Gas Fee Calculator - Automated Web Tools. Users will always go to the most efficient cost-effective product, and AVA labs is 4 steps ahead ensuring this is the lasting foundation of the protocol. Avalanche is also Multi chain friendly, and EVM (Ethereum virtual machine) compatible on Avalanche C chain, users can get the benefit of ERC20 without the high gas fees, and low TPS.
  • Real World use cases: Big Four accounting and consulting firm Deloitte recently Chose Avalanche for the "Close as You Go (CAYG)" disaster-relief platform that aims to help local governments streamline the process of receiving FEMA funds in the event of a natural disaster. Deloitte says that it chose Avalanche for this undertaking because of its speed, transparency, and climate-friendly credentials. Mastercard's Start Path Crypto recently announced its partnership with Ava Labs to: " explore and solve how blockchain can democratize use cases for individuals as well as businesses around the globe."
  • Ease Of Development: Ask any developer who's developed on Avalance, and the DEV toolset and ease of development is second to none. This has led to a budding ecosystem of defi Dapps, Gaming rewards infrastructure, identity solutions, and projects focused on cutting out middlemen who take money from those who need it most. All while promoting the move to Web 3.0. Developers can develop on 3 different chains to meet any needs that may arise.
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  • Ava Labs - President of Ava Labs John Wu, said in a recent London Real interview "AVA labs is about serving the community if we can't buy it or partner with it, we build it" AVA labs is a tech innovation hub, and the objective is to create ongoing adoption on Avalanche. Ava labs integrates business development into their process of Build, Buy, Partner. Ava labs aims to help native projects with all native applications including partnerships, business development, community. Ava Labs prides itself in giving the community what they want.
  • The Blizzard Program - Projects who want to build on Avalanche go straight to AVA labs at inception. The blizzard ecosystem fund was founded for ecosystem deal flow through Capital partners: PolyChain Capitial, and Three Arrows Capital, and others. The Blizzard program currently has over $200 Million USD allocated for innovative development in the Avalanche ecosystem.
  • Subnets: Subnets allow organizations or companies to leverage the avalanche consensus protocol while controlling the governance around the validators. Allowing financial services companies to adhere to compliance mandates within their jurisdiction. Users on subnets still have the power of Avalanche finality and transparency. Or for Tech companies who want certain users to have defined processing power subnets can grant these users access while restricting others. Allowing a private chain to manage their network.

In tech, some people are familiar with Amara's Law. Amara's law states that:

We tend to overestimate new technology in the short run and underestimate it in the long run.

I believe we're in the phase of underestimating what Crypto and blockchain long run. When companies like Deloitte, Mastercard are taking notice and attempting to embrace and leverage the new technology it's a great sign we're on the upslope of Amara's law. Innovative companies and organizations will always front-run mass adoption.

With Avalanche serving as a multi-chain compatible end-to-end platform for developers: Avalanche could someday be to the blockchain, what AWS is to web infrastructure, and cloud computing.