Imagine a world where deploying a dedicated blockchain is as seamless and cost-effective as setting up a new website. How can blockchain technology evolve to make this vision a reality?
Avalanche's ($AVAX ) latest proposal, ACP-77, seeks to answer this question with a revolutionary approach.
This proposal introduces a new type of validator, the "Subnet Validator," which drastically lowers the barriers to entry for launching a dedicated #Blockchain (Subnet) while implementing a continuous fee mechanism that subnets pay to the P-Chain. This innovative approach aims to enhance performance, customizability, and cost efficiency.
One of the key advantages of ACP-77 is the significant reduction in onchain and offchain costs. By shifting to a continuous payment model instead of hefty upfront fees, ACP-77 makes it easier for developers to create and maintain subnets. This model decouples operating costs from onchain economic activity, providing a more predictable and scalable cost structure.
High-Performance and Customizability
Historically, single execution environments like Ethereum and Solana have struggled with scalability and predictability, often leading to high costs and congestion. ACP-77 addresses these issues by offering a more flexible and performant solution. Subnets can now be customized to optimize the end-user experience, whether by integrating unique transaction ordering mechanisms or accepting a whitelisted set of assets for payment.
For instance, Uniswap’s need for a new transient storage opcode (EIP-1153) on Ethereum to reduce gas costs highlights the limitations of generalized blockchains. In contrast, app-specific chains like those on Avalanche allow developers to implement bespoke features without waiting for network-wide upgrades.
Value Capture and Token Demand
Dedicated blockchains also enable better value capture and create new demand drivers for native tokens. Unlike generalized platforms where applications struggle to capture value from their usage, subnets can integrate mechanisms like gas fee burning and staking. DeFi Kingdoms (DFK), for example, uses its native token JEWEL for transaction fees, creating a direct correlation between the token’s utility and the network’s success.
Economic Analysis and Comparison
To provide a clearer picture, Blockworks Research conducted a scenario analysis comparing the onchain costs of different dedicated blockchain solutions, including Ethereum-based rollups, Celestia-based rollups, Cosmos appchains, and Avalanche subnets. The findings reveal that ACP-77 would make Avalanche subnets as cost-effective as Celestia-based rollups while offering superior liveness guarantees and native interoperability.
For instance, DEXALOT, an example subnet, shows how ACP-77 could reduce operating costs significantly. The continuous payment model proposed in ACP-77, along with lower hardware requirements for subnet validators, positions Avalanche as the most cost-effective and scalable platform for high-performance blockchains.
Community and Governance
AvalancheHub, the DAO Labs #SocialMining project hub, exemplifies how community-driven governance can propel technological advancements. ACP-77 is a prime example of a proposal discussed and refined with the input of Avalanche’s vibrant and conscious community. This inclusive approach ensures that developments align with the needs and aspirations of the ecosystem.
AvalancheHub has nurtured a community that not only supports the network but also actively participates in its growth. Social Mining initiatives provide regular income to community members, fostering a dedicated and knowledgeable user base that champions the project.
Embracing Ecosystem Growth
AvalancheHub’s commitment to embracing and supporting breakthroughs like ACP-77 underscores its vision of sustainability and long-term success. By continuously innovating and involving the community in governance, Avalanche is poised to become one of the largest and most robust ecosystems in the blockchain space.
AvalancheHub's forward-thinking approach ensures that as the blockchain landscape evolves, its ecosystem remains at the forefront of innovation, providing unparalleled opportunities for developers and users alike.
