I previously wrote an article on this topic, which you can read here: Link to article. Today, I’m going to dive deeper into the topic by explaining the Avalanche 9000 update in detail. This update marks a crucial turning point for the Avalanche blockchain, transforming it into a true ecosystem of sovereign layer-1 (L1) chains. Here’s what this means in concrete terms.
What is an L1 Validator?
An L1 validator is a key player in a blockchain that helps secure and validate transactions. In a decentralized ecosystem, these validators play a similar role to miners in a Proof-of-Work (PoW) blockchain, but here they use a Proof-of-Stake (PoS) consensus mechanism. They are responsible for:
Validate transactions on the main chain (or subnets, as is the case with Avalanche).
Maintain network integrity by participating in the consensus process.
Stake AVAX tokens to have the right to validate transactions.
Change for Main Nodes
With Avalanche 9000, one of the biggest innovations is the removal of the mainnet validation requirement for subnets. Prior to this update, all validators had to validate not only their own chains, but also the Avalanche Primary Network.
Impact: Now, each layer 1 (L1) chain within the Avalanche ecosystem can operate more independently. This reduces the burden on validators, who can now focus solely on their own subnets.
L1 Chain Sovereignty: This removal of constraints provides subnets with a true degree of independence and sovereignty, allowing them to customize their rules and governance while remaining interoperable with the Avalanche ecosystem.
3. Reduction of Economic Barriers for L1 Validators
Another major benefit of this update is the reduction of the economic barriers to becoming an L1 validator. Historically, validating a Tier 1 chain (like Ethereum, Avalanche, or Solana) required a significant investment in staking and infrastructure. With Avalanche 9000:
Validation costs are lowered, making the validator role accessible to a greater number of actors.
This opens the door to increased participation from new validators who would not have had the economic means before, thus stimulating decentralization.
Compliant Institutions and Chains
One of the ambitions of this update is to attract institutions and large enterprises by allowing them to create regulatory-compliant L1 chains. Thanks to customization and advanced governance options, organizations can develop blockchains adapted to their regulatory needs, while benefiting from the interoperability and security of the Avalanche network.
Compliance: These institutions will be able to create blockchains that comply with local or international regulations, by choosing their own rules for consensus, staking and governance.
Security and Tools: Avalanche 9000 also offers a complete suite of ready-to-use tools, facilitating the deployment and management of these L1 chains, with a high level of customization.
What does this mean for the cost of L1s?
The Avalanche 9000 update will reduce the cost of operating L1 chains, especially for new projects and subnets. Here are some concrete impacts:
Less staking required: Lower economic barriers mean that the amount of AVAX needed to be staked to become a validator could be reduced.
Tools Available: Avalanche provides a suite of pre-built tools, which lowers the cost of development because developers don't need to build everything from scratch.
Avalanche 9000 represents a huge step forward for the Avalanche ecosystem, transforming its architecture to make L1 chains more independent, accessible, and customizable. This change also opens up new opportunities for institutions and developers looking to build compliant blockchains while taking advantage of the security and efficiency of the Avalanche network. By lowering the cost to become a validator and removing some constraints, this upgrade could increase the decentralization of the network and attract a wider variety of users and developers. It also puts Avalanche in a strong position to compete in the L1 blockchain space. Avalanche’s future looks bright with this update, solidifying its role in developing bespoke blockchain solutions for businesses and individuals.
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Disclaimer: This article does not constitute investment advice. Cryptocurrency markets are volatile and involve risks. Always do your own research before making any financial decisions.
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