These are powerful processes that autonomously interact with other assets based on internal business logic. These processes have the ability to monitor and automatically react to specific network changes, through the use of observables.
Subnetworks that obey specific rules, covenants and riders. Subnetworks include a built-in firewall that allows compliance by construction, i.e. assets that automatically obey restrictions, thus reducing overhead costs (i.e. auditing and authentication). Subnetworks can choose to be ring fenced from the rest of the network or interoperate with other subnetworks and the main AVA network.
We introduce the concept of AVA “plugins”, which allow developers to seamlessly augment subnetworks with a wide array of new features. Including new features and functionality on the AVA plaform is as easy as writing a one line “import” statement.
The AVA token is critical in detering sybil attacks and ensuring the security of the platform.
The AVA token will serve as both as the main medium of interoperation and exchange in the rich ecosystem, as well as the base provider of security and assurance in the network.
Holders of the AVA token can participate in the governance of critical system parameters.
Furthermore, the AVA token serves as the universal unit of exchange, enabling swaps and general interoperability.
A Breakthrough Protocol That Solves Issues Inherent In Previous Protocols.
You might have heard about algorithms like Paxos, PBFT or Hotstuff. These are classical consensus protocols. They are very high throughput and efficient for permissioned, centralized settings.
Unfortunately, they don’t scale if the system has a lot of nodes, or computers, and are quite fragile in open settings.
The formal name for Bitcoin’s consensus protocol is Nakamoto Consensus, which is to simply following the longest chain/proof-of-work.
These protocols are robust and great for open permissionless settings. However, they are limited in throughput and take long times to confirm and are quite energy inefficient.
Avalanche consensus is a breakthrough consensus protocol that solves some of the issues inherent in the protocols that come before it.
It is regarded as the best-of-both worlds because it achieves high performance, it is suitable for permissionless settings, and it is able to scale to thousands if not millions of participants.
Recent throughput tests of Avalanche demonstrate 5000+ Transactions per second. Transactions take 1-2 seconds to finalize.
Avalanche Consensus is one of the most adaptable consensus protocols in existence. Users can fine-tune the consensus protocol to fit their needs.
Other longest chain protocols require storage of the entire blockchain. Avalanche allows pruning of older history and even allow smart phones to particpate in consensus. Unlike in proof-of-work systems, there is no energy waste, and participation is very easy and low cost.
By our estimates, it costs 10,000 times less to run the AVA network compared to the Bitcoin network.
Avalanche can scale to thousands or million of nodes. At such levels of decentralization, transactions are irreversible and tamper-proof.