Avalanche Network Poised for Major Upgrades and Expansion in 2024

Avalanche,
a
cutting-edge
blockchain
network,
is
set
to
undergo
significant
upgrades
and
expansions
in
2024,
according
to

Galaxy.
The
platform’s
standout
feature
is
its
horizontal
scaling
approach,
enabling
the
creation
of
highly
customizable,
interoperable
blockchains
known
as ‘L1s’
(formerly
subnets).
This
architecture
supports
a
wide
range
of
use
cases,
particularly
in
enterprise,
DeFi,
gaming,
and
consumer
verticals.

Innovative
Architecture
and
Rapid
Adoption

Launched
by
Ava
Labs
in
September
2020,
Avalanche’s
mainnet
quickly
gained
traction
with
its
high-performance
EVM
L1,
the ‘C-Chain’.
This
chain
became
a
popular
choice
for
DeFi
activity,
amassing
over
$10
billion
in
TVL
at
its
peak
in
2021-22.
The
platform’s
unique
consensus
mechanism
enables
swift
transaction
finality,
typically
within
two
seconds.

To
differentiate
itself
from
other
EVM
chains,
Avalanche
introduced ‘subnets’
in
mid-2022.
These
customizable
chains
run
parallel
to
the
Primary
Network,
offering
developers
the
flexibility
to
configure
blockchains
according
to
specific
needs.
Subnet
builders
can
define
execution
logic,
choose
their
gas
token,
adjust
fee
structures,
and
manage
validators.
Avalanche
also
features
native
interoperability
between
blockchains
and
a
shared
liquidity
hub
via
Warp
Messaging/Teleporter.

Upcoming
Avalanche9000
Upgrade

A
major
upgrade,
Avalanche9000,
is
planned
for
late
2024.
The
upgrade,
part
of
the
Etna
initiative,
will
replace
the
current
subnet
model
with ‘L1s’,
significantly
reducing
the
costs
associated
with
launching
blockchains
on
Avalanche.
The
new
framework
aims
to
accelerate
subnet
development
and
provide
self-regulated
security
for
enterprise
L1s,
meeting
regulatory
compliance
requirements.

Targeted
Growth
Initiatives

Avalanche’s
ecosystem
growth
initiatives
focus
on
DeFi,
RWA/tokenization,
gaming,
and
arts/culture
markets.
Notable
partnerships
and
projects
include
collaborations
with
Deloitte
for
disaster
recovery,
California
DMV
for
tokenized
car
titles,
and
JPMorgan
and
Citi
for
financial
applications.
These
partnerships
aim
to
transition
from
proof-of-concept
to
production,
validating
Avalanche’s
use
cases.

Competitive
Landscape
and
Challenges

Avalanche
faces
competition
from
platforms
like
Ethereum,
Polygon,
Cosmos,
and
Polkadot,
each
offering
unique
features
for
launching
application-specific
blockchains.
To
stay
competitive,
Avalanche
must
attract
high-quality
projects
and
builders,
particularly
in
the
face
of
robust
Ethereum
L2
ecosystems.

Institutional
and
Enterprise
Adoption

Permissioned
subnets
are
positioned
as
solutions
for
regulated
entities
requiring
compliance.
Avalanche’s
customizable
features
make
it
a
viable
option
for
institutional
adoption,
particularly
as
regulatory
guidelines
evolve.
The
platform’s
deep
customization
and
managed
deployments
could
gain
acceptance
in
sectors
needing
privacy
and
control.

Technical
Advancements
and
Future
Prospects

Ava
Labs
has
introduced
tools
for
custom
VM
development,
including
the
HyperSDK
toolkit.
While
most
public
subnets
currently
leverage
the
EVM,
showcasing
a
powerful
custom-built
VM
could
help
Avalanche
stand
out
from
Ethereum
and
its
L2
ecosystem.
Key
performance
indicators
for
assessing
Avalanche’s
health
include
the
number
of
L1s,
total
addresses,
transaction
count,
total
contracts
deployed,
and
gas
used
by
L1s.

Upcoming
Events

Key
events
to
watch
include
the
Avalanche
Summit
LATAM
2024
in
October,
the
Etna
Upgrade
to
Avalanche9000
by
the
end
of
the
year,
and
the
Shrapnel
Game
Early
Access/Public
Launch
targeted
for
late
2024
to
early
2025.

As
Avalanche
continues
to
innovate
and
expand,
its
focus
on
customizable
blockchain
solutions
positions
it
as
a
significant
player
in
the
evolving
blockchain
landscape.

Image
source:
Shutterstock