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.