Foresight&Ava Labs&Avatar: Avalanche From EVM-Compatible L1 to Subnet Practitioner


2. Avalanche Overview

(Ava Lab Founding Team; Source: Ava.Network)

2.1 Understanding Ethereum’s Scalability Problems

  1. Vertical Scaling Solution: Avalanche Consensus. Avalanche can reach as fast as 4500 TPS, without compromising decentralization and security, making it one of the fastest and safest blockchains in the crypto space.
  2. Horizontal Scaling Solution: Avalanche Subnets. Instead of a monolithic blockchain, Avalanche should be seen as an organization of blockchains validated by different subnets. The subnet solution has provided Avalanche with infinite possibilities to scale, as developers could start their subnet in as little as 12 hours.

2.2 Vertical Scaling Solution: Avalanche Consensus

2.3 Horizontal Scaling Solution: Avalanche Subnet

3. Subnet Use Case

3.1 GameFi Use Case–The First Subnet on Avalanche

( DFK chain Stats; Source: @AVAXholic)
  • Moving to Swimmer Network has helped the Crabada community-run looting/ mining missions more efficiently. Players have recorded cheaper transaction fees and a great user experience, showing the potential of the subnet for all projects.
  • While Crabada has an inflationary token $TUS, which is similar to Axi’s SLP but it potentially could drive more value. Crabada is looking for the potential to bring small games onto the subnet. (e.g. Snake City). If more and more games are using $TUS in their marketplace for their games, there will be an additive value-driven to the token and the network itself.

3.2 Subnet with native KYC functionality

3.3 Enterprises Use Cases–Beyond GameFi, Beyond Web 3.0

3.4 Other examples of subnet use cases:

  • Specialize in the fractionalizing and sale of assets that correspond to real estate, where validators have to store archive records off-chain for the property. (Dapps that might potentially adopt subnet solutions: Retok Finance)
  • For very high-performance applications a subnet could require validators to require large amounts of RAM or CPU power for applications needing 10,000+ TPS.
  • Private subnets are similar to enterprise blockchains such as JP Morgan’s Quorum, R3’s Corda, and hyperledger where access is restricted and the content of the blockchain is only visible to these participants.
  • Existing blockchain can port their state over to Avalanche and use its consensus mechanism for faster performance, finality, and increased security. So blockchain such as Bitcoin Cash, Ethereum classic could each have their own subnet and utilize POS, using their own token as stake. There is already an Avalanche version of Zcash on a Subnet.

4. Competitive Analysis

4.1 Comparison with L1s: Cosmos, BNB, Avalanche

(Avalanche Comparison with BNB, Cosmos; Reference: A Comparison of Heterogeneous Blockchain Networks.)

4.2 Comparison with L2 Rollups

(Avalanche Comparison with L2s, Reference: Ava. Network, Arbitrum.Network; @StarkWareLtd|Twitter,@zkSync|Twitter)
  1. The other key difference between Avalanche subnets and EVM layer 2s is whether the liquidity is united or fractured.

5. Avalanche Ecosystem

5.1 Shrapnel

5.2 Arrow Market

5.3 Dexalot

  • Rapid settlement times, allowing users to trade assets with ease
  • Negligible transaction costs, improving financial inclusivity
  • Subnet utilises $ALOT as gas, adding extra buying pressure to the native token

6. Valuation

8. Closing Remarks

About Foresight Ventures





Foresight Ventures is a blockchain technology-focused investment firm, focusing on identifying disruptive innovation opportunities that will change the industry

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Foresight Ventures

Foresight Ventures

Foresight Ventures is a blockchain technology-focused investment firm, focusing on identifying disruptive innovation opportunities that will change the industry

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