- With ironic self-criticism, Avalanche identifies decentralization, accessibility, versatility and acceptance as its “main problems”.
- Its modular subnet framework offers horizontal scaling through multiple Layer-1 units operating in parallel.
The Avalanche (AVAX) community is having fun after the development team gave a tongue-in-cheek X-Thread published, which begins with the words: “Avalanche has a massive problem.” The old adage follows: “If you are everything, you are nothing,” before referring to it and calling it “Problem 1”:
“Avalanche can do anything.”
This is due to its architecture. The network is based on three core chains that work smoothly together: the X-Chain, which handles the creation and transfer of assets; the C-Chain, an EVM-compatible smart contract chain that supports Solidity, tokens, dApps and NFTs; and the P-Chain, which coordinates validators, manages staking, and coordinates Avalanche’s subnet system.
Decentralization, subnets and validators
The team further pointed to “Problem” #2, “Avalanche is overly decentralized,” and “Problem” #3, “Launching an L1 is too easy,” noting that creating a Layer 1 blockchain can typically take several years and millions of dollars, making it an uncertain adventure, while Avalanche allows developers to launch their own L1s quickly and effectively.
Avalanche allows the creation of subnets. These are blockchains that can be customized almost at will based on fees, setting up custom governance, and fine-tuning compliance rules without worrying about security or slow transaction speed.
The network is supported by a large, global group of validators. Avascan reports that Avalanche has more than 340 blockchains and more than 800 validators, with approximately 211 million AVAX tokens in stake. No special hardware is required to operate a node, helping to avoid centralization and keeping the network strong.
The background of this Avalanche design with multiple chains, subnets, scalability, decentralization and customizability is to support real-world applications: DeFi platforms, gaming, and asset tokenization.
Self-deprecatingly, the team comes to “problem” number 4: “Companies use Avalanche” and cites as an example FIS Global, a financial technology provider that partnered with Intain to run the “Digital Liquidity Gateway” marketplace on Avalanche.
It was recently announced that Japan’s three largest banking groups, Mitsubishi UFJ, Sumitomo Mitsui and Mizuho, which together serve over 300,000 corporate customers, will issue stablecoins on Avalanche pegged to the Japanese yen and the dollar.
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