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Avalanche: Create Without Limits 🦾 #Layer1 #DeFi #Gaming #NFTs #AVAX
Recorded: Jan. 30, 2023 Duration: 1:20:49Space Recording
Full Transcription
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Yeah.
And time to get to the bread and butter.
And correct me if I'm wrong, but subnets are really how you guys made your name and their
focal point of the ecosystem.
But let's take a step back.
Let's take a step back.
What is a subnet and how does it work and how do they work in unison?
Yeah.
So a subnet, at the simplest, the most computer science way of saying it is the way that I
like to call it is just a conjunction of a validator set and a set of blockchains.
So what that means is that there is some validator set, just a collection of validators with some stake weight allotted to each one of them, and then some set of blockchains that that validator set has decided to validate together.
The way that this boils down is that every subnet, the whole validator set is some subset of the validators on the primary network.
And this means that it allows it to have horizontal scaling where you can have five validators of the primary network that opt in and decide we are additionally going to opt into validating this subnet because it has some form of economic rewards or they can just decide to do it.
And this means that people that want to validate that subnet can opt in to take on those higher validator requirements.
So the nice thing about this is that a subnet adds no further requirements on the primary network itself.
So you can launch a new subnet or a new Krobata, DFK, any other subnet.
Dexalot is launching very soon as well.
All of these subnets, they don't add any burden onto the validators of the primary network unless they choose to opt in, which allows people to have very nice properties for horizontal scaling,
where those validators can actually beef up their hardware in order to support that subnet.
However high performance they need, they can beef up that hardware in order to support it.
Another cool thing about subnets is that validators can actually opt in to validate multiple different subnets if they would like to.
So that means that if the economic rewards of validating a specific subnet A and subnet B, or let's call it Dexalot and DFK,
if the rewards of validating both of those can actually compensate you for the additional hardware required,
it could make sense to actually validate all of those subnets.
But it doesn't impose any cost on the validators of the primary network that don't want anything to do with that or want to run a minimal node.
So this is a really nice property.
And the other interesting thing about subnets that I find to be the most interesting is the fact that since the validators of a subnet are all a subset of the validators on the primary network,
this means that every validator of subnet A and subnet B knows exactly what the validator set of every other subnet on the network is.
And this is super nice.
If you're familiar with, you know, multi-chain and all the bridging solutions that exist,
this is one of the biggest attack vectors that has existed in crypto for the past few years.
I believe in 2022, there was over a billion dollars, maybe 10 billion or probably at least three to five billion dollars of hacks that were just targeting bridges,
which is absolutely huge.
A ton of this was North Korea.
It's not only bad for the space, it's legitimately bad for the whole world.
Like literally North Korea is making very large amounts of money.
It's sort of terrifying how bad this is.
And there was a paper, a systemization of knowledge paper that broke down what is required to implement a bridge really, really well.
And one of the core ideas is that in order to form a bridge between blockchain A and blockchain B,
it does actually specifically require some third party to authenticate trust between these two points.
So if blockchain A has some validator set of five people,
that's completely disjoint from the validator set of blockchain B.
Blockchain B has no way to know what happened on blockchain A,
and it shouldn't have to know what happened on blockchain A.
That's sort of the whole point.
And so what you actually have to have is some trusted third party,
or not necessarily trusted, but some third party that attests to what happened on blockchain A and blockchain B
in order to communicate between the two.
So this is how most bridges work today.
And it essentially, in most cases boils down to,
you have some like client that serves as a point to point communication between two blockchains,
which is a nice way of doing it.
So the great thing about subnets is because if you have access to the complete validator set from subnet A and subnet B,
just by being a validator on the primary network as well,
it almost lets you have that like client out of the box is the way that I typically like to explain it.
And this is really cool because now that your subnet B and let's say subnet A is sending you some message,
you know the complete validator set of subnet A.
And so those validators can actually all work together to sign a message to subnet B,
specifically naming subnet B.
And subnet B can actually look up the validator set on the primary network on the platform chain
and see exactly who the validator set is there as well as what their registered BLS public key is in order to validate that signature.
So now we went from, you know, needing to create this point to point communication between two different blockchains,
which in many cases requires many different like lines,
to actually just using the P chain essentially as that like line, as that trusted third party.
And since this is already in the requirements of running a node,
it really puts a minimal burden on the network.
Another really nice part of this is subnet A and subnet B can actually communicate
without putting any additional burden on the primary network.
Another method that some people are kind of playing around with is having some larger chain or larger blockchains such as Ethereum
where messages are potentially passing through that network.
And that way, instead of creating all these different point to point communication protocols,
you can send a message to Ethereum and you only run the like client there or something along those lines.
The nice thing about intersubnet communication is that,
and this is called avalanche warp messaging actually,
there's going to be lots more documentation, lots more to hear about this in the coming weeks and months.
The really great thing about this is that those messages are just a signature created on subnet A,
which only involves those validators and can be validated on subnet B,
receiving it and verify that signature without doing any work whatsoever on the primary network.
So in the exact same way that moving some computation off of the primary network towards a subnet,
only imposes additional costs on the validators that opt into it.
Avalanche warp messaging works in the exact same way in that there's no additional cost whatsoever to the primary network that is.
So to sum it up, quite the intricate and robust system, I want to take a few steps back and ask,
what's the cost, first of all, for setting up a subnet?
And what are the minimum number of validators required to participate in supporting that subnet?
I know that seems to be like an infinite number can come in and based on an economic incentive,
be a part of validating or supporting that subnet, but what's the minimum?
So there's, there's technically literally no minimum, you know,
you can actually have a subnet with zero validators.
And actually, because lots of people have been playing around with this and didn't quite get the full way,
there are plenty of subnets with literally zero validators.
Now, of course, that's not particularly useful.
So, you know, I don't recommend that.
You can run a subnet with a single validator.
And this could actually be useful with Avalanche warp messaging.
One of the ideas that I find incredibly fascinating is the potential use of subnet as,
and this would probably not be the most scalable right now with the cost of setting this up.
But if you just run a subnet, all of a sudden you can use Avalanche warp messaging
to potentially communicate with any other subnet that's out there,
which could potentially be really, really interesting,
even without a high level of decentralization on that subnet,
just with the ability to use that subnet to communicate to all of these other blockchains that are out there,
I think could be extremely interesting.
I'm really excited to see people play around with that.
I have some of my own ideas on what some interesting things you could do there are.
Based on the, this is actually the number of validators that you should have on a subnet,
is really based on the consensus protocol itself,
as well as what are your decentralization requirements
and what are the trust assumptions of your subnet.
So, for example, if you're running a permission network,
you might be completely okay with saying there's going to be one server, one node,
we're actually even okay with downtime because, you know,
obviously you will at some points in time have to turn off a machine, update the software, etc.
If for your subnet, for your use case,
you're actually 100% okay with a couple minutes of downtime in order to perform a software update,
you're okay with a high level of centralization,
you can absolutely run a subnet with a single node.
However, if you are trying to actually get the real benefits out of a lot of the principles of blockchain,
you know, decentralization, which I'm not, this is not to say that it's always required,
but if you're trying to run a much more decentralized subnet with the goal of using this to avoid downtime,
as well as to avoid censorship resistance, as well as to involve many different parties,
then I would say the minimum that I would recommend is closer to 10.
So when we were actually running the test network on Avalanche, we were actually running 20 nodes,
as we found that was a pretty good happy medium number, you know,
we're not burning through too much money to pay for AWS costs,
but 20 was a pretty good number, where if we took one or two nodes down,
or even three or four, it was okay, it didn't cause the network to stop or anything,
and we could just turn them back on and it gave us a pretty reasonable level of fault tolerance.
So I would say that 10 is a good starting point.
And as you are considering building out a subnet,
one of the really interesting things is a lot of the people building these are application builders
that haven't necessarily had to think about things like proof of stake
and all of the different trust assumptions that go on when you're building actually
or considering and dealing with the consensus protocol itself.
And so a lot of people, they're used to building a DAP, deploying it through Ethereum,
and they're like, yes, it's decentralized now.
When you're launching a subnet, you're essentially launching your own L1.
You actually have to worry about promoting the decentralization of that subnet,
incentivizing it the right way so that it does get to the right place.
You're not allowing, you know, some North Korea to take over 40% of the stake of your network
or anything like that.
So this is pretty interesting and it's something that can be a little bit foreign to developers
that are new to that world.
Yeah, it's a very, very interesting thing to get right.
Yeah.
I lost my train of thought there, but could you bring me back to the question, Noah?
No, no.
It's spot on.
You answered the question and the follow up question I had,
because you just said that you have some ideas for awesome future use cases.
So tell us a bit about that if you don't mind sharing.
These are early stage ideas of things that I haven't really thought all the way out yet.
But, yeah.
Sorry.
Yeah.
No worries at all, man.
We can skip.
So you guys recently had a massive partnership with AWS.
And so I would love to know a bit more about AWS's one node or one click node deployment
and how that's going to work.
When we're going to see those at all.
Yeah, I can jump in here.
My name is Justin.
I do BD on the enterprise side here at Ava Labs.
So, yeah, the AWS deployment.
I mean, you can actually go to AWS Marketplace today and spin up an Avalanche validator in one click via the Marketplace.
So that's live today.
There are other features that we're looking to add with AWS in the near future.
I think you've kind of alluded to it this entire time, but a one click subnet deployment on AWS is on our roadmap,
as well as a more managed service for AWS validators or Avalanche validators running on AWS.
Meaning that any patching, any upgrading, anything like that is actually managed by AWS and the end user doesn't actually have to go through the scripting and updating that way manually.
And I'm assuming that AWS, them offering subnets as a service and also you guys looking to bridge the gap between Web 2 and Web 3.
That's critical, but would love to know what other partnerships will be needed to make this stream a reality.
Yeah, so there's a lot going on in the background, as you can imagine, with AWS.
They actually have some very crypto native folks who are working there and have some pretty lofty aspirations for what they want to accomplish.
So without going into specifics, as I'm not at liberty to discuss specifics, we are working on a number of other projects with AWS.
There was something that was leaked pretty recently, which is very cool surrounding AWS, something that we're looking to be a part of.
And then obviously, just honing back into what we're trying to do, I think back to what you were saying is, you know, we're giving enterprises, institutions, governments, the ability to create subnets, run subnets and interact with blockchains in environments that they already know.
That's the beauty of the partnership with AWS is, you know, these enterprises, they're not going to jump out on a limb and start building in a unique environment.
They want to build in some place that they're comfortable with, somewhere where they already have their tools, where they already have their operational security set, their IAM and whatnot.
So that's why this AWS deal is so important to us and so important to the enterprises that we're speaking to, is because we give, you know, anybody the tools that they need to operate and build in an environment that they already know.
So we talked earlier about the importance of folks being able to interface with this stuff, where they're not seeing what happens in the background, it's very much like interfacing with Web2.
So with that said, are there plans, if not already, to make one-click node deployment something where anyone can just fill out basic parameters, relatively basic parameters, without having too much technical background, such as, you know, with, for example, Aaron's breaking things down.
Like a lot of this stuff goes over my head because I'm not a tech guy.
Is there a way to, you know, condense that into something that the average person can use and set up a subnet?
Absolutely. Yeah. That's, that's kind of the end goal with, with AWS and some of the other hyperscale clouds is to basically abstract away a lot of the complexity of running and managing nodes.
A lot of enterprises that we speak to are pretty hesitant to change and they don't have entire Solidity developer teams ready today.
So they do rely on third parties to help implement these validator nodes or subnets or NFTs, whatever it may be.
And the goal there is to help upskill those enterprises, institutions, systems integrators, and also give them the tools to make it as simple and intuitive as possible.
So I would say in the near future, it's, it's something that's on our roadmap to make launching an avalanche validator very, very easy to do and not really need any, you know, too much.
I would say you still need some, a little bit of technical experience, but you're not going to need a full amount of technical expertise.
And guys, what is the plan for interoperability with other chains? Is a subnet, are subnets the end game or do you guys have more in store?
When you say interoperability with other chains, are you talking about interoperability with like moving different ecosystems or interoperability within the avalanche ecosystem?
Other ecosystems.
Yeah, I think that's, that's sort of very separate from the way that avalanche for messaging and our intersubnet communication works.
So I think this is going to be a bigger story that largely happens externally to avalabs.
You know, there's maybe some possibility, actually there's, there's an interesting possibility that other people could use a like line of the p-chain, which currently doesn't exist yet, but it's pretty, pretty doable.
So to actually interact with any other, any subnet on avalanche, if they integrated with the way that avalanche for messaging works, all that they would really need to know is to have that like line that's able to give you access to the current p-chain space or the current evaluator set of all the different subnets that are out there.
So there's probably something interesting that could be done there in order to give people, give developers in other ecosystems, other completely different multi-chain ecosystems, direct access not only to the avalanche primary network and not necessarily requiring people to build point-to-point communication directly to every subnet,
but actually integrating once and then suddenly having access to all of the avalanche word messaging that's going to exist within that ecosystem, but it would still require that bridge between the avalanche ecosystem and whatever that other multi-chain ecosystem or just single-chain ecosystem would be.
So yeah, I think that's largely going to be dominated by a decent number of other players that are happening in this space.
There's a lot of great people, a lot of great builders that are doing a lot of work here.
I could name a couple.
There's some interesting stuff in the security community happening today with them, so we won't go into any names of places I like or anything like that.
But yeah, it was a very competitive space there, for sure.
And I guess one more question for you, Aaron, or this next one's going to be for you.
From a high level, what would you say Avalanche's subnet model has as far as advantages over Polkadot's parachain model or a future Ethereum with sharding and dozens of highly scalable layer twos?
I think there's two things I like about it the most.
One is I think that the Avalanche consensus protocol has potentially very desirable properties and a very, very nice separation between consensus and the state machine.
Those, I think, are really nice and gives people a lot of flexibility in terms of what they are going to build on top of.
And the other, yeah, I would say is just the subnet model and what that allows you to do in terms of horizontal scalability,
where you can actually opt in to validate these additional networks and increase the hardware requirements in order to beef up what throughput you can get on those subnets.
And then lastly, it's just, yes, I think Avalanche word meshing is actually a really good solution.
I'm not that much of a shell, I'm more of an engineer, but I would potentially say the best one on the market for actually being able to interact extremely easily with minimal overhead.
And this is something, you know, we're continuing to develop.
So props to all the other protocols that have already launched this and already using this in production.
Avalanche word meshing, we've used it on one VM, but we're still working on integrating into the EVM.
So props to all the other ones because they are further along in that journey than we are.
But I think the core design is really, really interesting and hopefully is going to make it easier to build on Avalanche than it is to build any place else.
And I think that's really the goal is to compete at that sort of platform level where we are making Avalanche the most interesting place to build.
And as soon as you launch some subnet on Avalanche, some VM on Avalanche, your blockchain on Avalanche, you are just immediately plugged into that ecosystem where you have a fast consensus protocol, better than anything else that's out there.
And you're immediately plugged into this interoperability framework where you can interact with anything else that's on the Avalanche ecosystem, making it really that best place to build a whole large number of different applications.
That's kind of the takeaway for me.
I was reading about Boba Network and how they're deployed on ETH, AVAX, Moonbeam, and BNB.
Curious to know, in what ways can Avalanche benefit from Layer 2s?
I'm actually a huge fan of Layer 2s, which has been an unpopular opinion from some folks at Avalanche, but I think they actually bring a huge amount to the ecosystem.
And I think we're shifting to embrace them a ton more.
You know, they're getting a ton of mindshare in the Web3 community today.
And I think they're a really, really great invention.
And I think they can actually fit extremely well into the subnet narrative.
The reason for this is that the core primitive that I think Layer 2s provide is this idea of trust minimization, where any type of consensus protocol that you have that's out there, it's going to rely on the majority of validators behaving honestly.
So actually, more than a majority, but, you know, if you have 70% of validators are behaving dishonestly, they're trying to cause other people to have problems, then that network is not going to work.
And the reason for that is, you know, 70% of people are saying A happened and then B happened, you know, you're going to lose liveness, you're going to lose safety properties, and consensus protocols just sort of fall apart if you don't have that majority assumption.
The whole point of Layer 2s is that they assume that there is some L1 that they can roll back up to, where they just assume, okay, that is the place where you take care of the majority assumption.
And then you can have some smaller network where you can actually have a 1 out of N instead of a majority of those validators that you trust.
And the cool thing about this is once you do that, you can have much, much smaller networks without giving up nearly as much in terms of trust or security.
And I think that subnets provide a really, really interesting place to build L2s because you can get decentralization and consensus out of the box, and you can use avalanche port messaging to potentially post data back to the primary network in the future, of course, very, very easily and interoperably.
And I think that's a really, really powerful narrative that a number of L2 builders are potentially very excited about using and leveraging.
And I think that's definitely something that you're going to see a lot more from the avalanche ecosystem.
So I'm really, really excited for L2s.
I think they add a ton, and I think they're going to be very likely a big part of how Web3 gets adoption, if it does, is using L2s to unlock a large number more applications and decreasing the barriers to entry to building really, really scalable application-specific chains while maintaining a high level of – or a low level of trust.
I'm sorry, a high level of trust in the application, a low requirement for trust, and a very high level of security.
I think it has some really cool potential.
I think if folks were listening to the broadcast earlier, they might be able to piece together the different ways that avalanche is working through the blockchain trilemma.
But if there's anything with regard to that, Aaron, that you think is important to share, go ahead and do so now before we move on to tokenomics.
I mean, I think the blockchain trilemma is really just this – it's this sort of thing saying doing these three things at once is hard.
It's not saying that doing these three things is impossible.
And I think we're actually getting to a point where it's like, okay, you can actually do all of these things.
You know, there's definitely tradeoffs between them, but it's not impossible to hit all of these core tenants or goals.
So I think avalanche has done a really great job of achieving decentralization, scalability, speed, throughput.
I don't actually remember exactly what the three tenants are.
I don't think this is as relevant today as it once was.
I think it's at least three of the things that I just said.
Yeah, decentralization, speed, security.
You got it.
Speed, security, yeah.
So avalanche does a really good job of this.
And I think it's – I think this is probably not going to be as important as it was a few years ago as consensus protocols have continued to develop.
And what was once doing these three things is either impossible or hard is now, okay, we can do all three of these things at once and we're in a nice way.
And the L2s actually are a huge benefit to this as well because of the ability to say, okay, sure, you require a consensus protocol to provide all three of these.
Or you can have a layer one that provides very high-level security, but then you can have speed through an L2.
And I think that's actually very, very compelling to say, all right, the blockchain trauma may be not within one blockchain, but the goal of this is not to build a single blockchain that has all three of these.
The goal of this is to build secure and reliable distributed systems that people can use.
And I think that for that, integrating all these different pieces allows us to build interesting applications with all three of those in a really nice way.
I've heard very positive feedback in regard to Avalanche's tokenomics.
So just from a high level, do you guys mind giving us a quick breakdown of the tokenomics, token utilities, and anything else that we might need to know?
I'm not sure who's – I guess I wasn't sure who to direct that question to, but go ahead, Nikhil.
Yeah, happy to take that on, and then I'll pass it over to Matt, who might be able to add some more context.
But the general idea for the Avox token utility is pretty interesting, and I think that's what sets it apart in many ways to a lot of other sort of modular, horizontally scaling blockchains that are there.
As Aaron had mentioned, there is the primary network, so if you want to spin up a subnet, whether it's an enterprise subnet, a gaming-specific subnet, what have you,
then you do have to go through the primary network, essentially, and run a validator there, take a slice of those validators, and then you can run your own subnet.
So this adds an extra utility for Avox long-term, where basically you're able to – if you want to be able to create your own blockchain, you have to stake Avox in that sort of manner.
This is different than a lot of other horizontally scaling blockchains, where things are entirely separate,
and essentially it's more of like a sidechain as a service, where everything is entirely separate, and you don't need to utilize the token at all in that sort of manner.
So that's definitely something that's interesting on that front.
The other thing is also that there are services that, for example, require Avox to be used.
So on the C-chain, for instance, which is sort of used as the general hub of liquidity, so once more and more subnets go live, which they are now,
and as Aaron had mentioned with Avalanche Warp Messaging as well, what a lot of projects are looking to use is use the C-chain as a liquidity hub.
It has the highest amount of security, so it makes sense to kind of draw liquidity from there.
But of course, in the C-chain, you basically need to utilize Avox as the gas fee.
So there are two main sort of long-term utility factors for Avox there.
As more subnets sort of are spun up, there is more Avox that needs to be locked away.
This includes not only for enterprise use cases, but even permissionless ones, if somebody wants to spin up their own permissionless L1.
And as for tokenomics, of course, there's a finite amount of Avox, and that's mainly because the primary utility for Avox is to basically spin up subnets and utilize it for applications.
I'll pause there for any questions, and also if Matt wants to fill in any gaps I may have left out there.
Yeah, I guess two things I'd like to add as well is I think some subnets will actually utilize Avox as the gas token,
so that'll add sort of another deflationary mechanic depending on what they do with those fees.
As well as, like Nikhil said, there's a finite amount of Avox in which the percentage breakdown is released publicly.
But right now, most of the inflation is directly from staking.
So I guess I'm pretty clear on all that.
Is there a max supply?
You guys might have said it, and I might have missed it.
Yeah, I believe it's 720 million, but correct me if I'm wrong, members of my team.
Yeah, that's right.
This is a question from a community member, and I have it on the sheet, but I don't have as much context to elaborate on it.
The question was, is the Avalanche network quantum-secured, and are you building quantum-resistant solutions?
Aaron, you want to take that or have any context on that front?
Yeah, no, it's not currently quantum-secure.
It's definitely something that we have on our radar.
A long time ago, actually, prior to public mainnet launch, we were working on a quantum-safe cryptography scheme for transaction signing, which was an interesting project.
We didn't fully finish it, or at least not merge it.
I think the PR is actually still up on the public repo, but we were actually kind of waiting for NIST to finalize a sort of a standard in what quantum-safe cryptography would be.
It's sort of a recommended library, and I think we had somebody take a look at three or four different options that were out there and decide on one to go ahead and implement.
Quantum-safe cryptography is something that's still very much a work in progress, and it's hard to say exactly how far away it is that we're actually going to need it.
I would say this is an interesting question, but I don't think this is something that's going to be a huge concern in the next two to probably five years, in my estimate.
And we'll probably see much more progress, much more clearly, well before it becomes a concern.
Could be definitely wrong about that. We'll see.
If so, the whole world is not quantum-safe.
So there are much bigger concerns than, to be honest, all blockchains, but also Avalon specifically.
Yeah, this is something that's going to be a global movement to switch to quantum-safe cryptography when it becomes necessary.
And I think that's probably a little while away.
And if you disagree with that, you should be very scared.
Because a lot of this stuff is not quantum-safe.
Yeah, it's kind of, I'll draw an analogy.
It's kind of the same thing that I tell people when they say, well, what if the internet goes down?
What am I going to do with my crypto or my Bitcoin?
I'm not going to be able to access it.
Unless if the global internet goes down, then you have bigger problems.
Something cataclysmic is probably happening to cause that.
Aaron likes a solar flare analogy, too.
Oh, yeah, I'm a big fan of solar flares.
They're terrifying.
Guys, I...
It's not a quantum-safe nor solar flare-safe if the entire power grid is wiped out.
So, solar flares and quantum cryptography, big worries, not just for Avalanche, not just for crypto, but the whole world, really.
This is my conspiracy theory slash end of the world side.
But, yeah, very interesting potential concerns for the world.
Well played.
Guys, I used the Avalanche bridge quite a bit during the bull run.
And I mentioned earlier that a lot of my friends who were native to crypto got into the space, were very interested in participating.
And everyone collectively told me the Avalanche experience, and this is my anecdotal experience, the Avalanche, my anecdotal feedback, the Avalanche experience is the best one.
So, I used probably a dozen bridges in my time participating in different liquidity incentive programs and DeFi.
And for whatever reason, as far as just how fast it worked, the relatively low gas fees, because a lot of other bridges, I ended up paying, like, hundreds of dollars in Ethereum gas fees.
I'm not sure why they were all so high.
But also, just something as simple as an airdrop once you arrive to the ecosystem, which, believe it or not, bridges like Polygon did not have.
I had friends that bridged over to Polygon, and they were like, hey, I don't have anything for gas.
Can you send me some Matic?
So, let's talk a bit about the Avalanche bridge and why it's so awesome.
I mean, I'm just going to say it all right.
What did you guys do differently?
Aaron, you want to take that?
Or, you know, Matt and I can also talk about the bridge, too.
Sure.
I can talk about it a little bit.
I think, actually, there's two things, I guess.
The first one is, you know, when you have a network that's actually faster, that's where a lot of latency comes from in all of these bridges, is you have to have a transaction that happens on both chain A, the sender, and then also chain B, the receiver.
So, if you have interacted with that Avalanche bridge both ways, I forget which, but it's actually slower in one direction than the other because of, or at least the transaction will show up.
Yeah, so if you send a Vox from Avalanche to Ethereum, you know, as soon as that transaction is finalized on the Avalanche network, you can send the withdrawal on the Ethereum network.
If you're sending something from Ethereum to Avalanche, you know, you have to get some number of confirmations first on that network before it's safe to actually mint the corresponding funds on the Avalanche network, the corresponding kind of wrapped funds.
So, it's, the reality is that because one of those sides is so, so fast, you can actually reduce the latency in a really, really large way, which is a really nice property.
And I think that's one of the big reasons, like we talked about before at the very beginning with how Avalanche improves that user experience.
It comes down to that.
That's the lower transaction latency in action, giving people a better experience when using products like Bridges.
The other thing is, I think we had the opportunity to learn from a lot of the different user problems that had existed in that, in different Bridges.
And, you know, saw, okay, having an airdrop is actually incredibly useful because if you bridge your tokens and don't have any AVOX to pay the gas token fees, then all of a sudden, you know, you can't do anything with it and it's not very useful.
So, I think we had the benefit of a number of great innovators that come before us in terms of building Bridges.
And we were able to learn from some of the things that led to user problems on those Bridges and make that experience a little bit better and a little bit more seamless.
And also, there's a fantastic engineering team that worked on that bridge and is now working on Avalanche Port Messaging and some applications built on top of it as well.
So, going to see a lot more great things coming out of that team too.
I do actually have to drop off for an interview really quickly.
So, thank you guys so much for having me on.
It was fantastic to be here and great to meet everybody.
Yeah, thanks for coming on, Aaron.
Good luck on your interview.
Really appreciate all the breakdowns.
Stay good, sir.
Have a good one, guys.
All right, so, let's see.
I want to...
Guys, the assets ending in .e, that just means that they came in through the AVAX bridge.
How are wrapped AVAX assets different from, let's say, wrapped assets on other chains?
Or is it pretty much the same mechanism on the back end?
So, the way that wrapped assets work on Avalanche from...
So, if you see the sort of the suffix, the .e, that means that basically it's an asset that came over from Ethereum.
So, there's like BTCB.e.
That was initially basically wrapped BTC.
That came from Ethereum.
There was also other assets as well that came that way too.
So, the way that it basically works is that when it comes to the bridge, unlike other, you know, other bridge networks, it leverages the security of the Avalanche Ethereum bridge, the SGX bridge, which has several wardens.
Whereas, in the case of like, you know, other wrapped assets, they may use a centralized custodian provider like BitGo, for example, where they will basically use...
They'll use like a single person that is basically managing all of those assets.
So, that's essentially the way that it works there.
And, yeah, it's the main differentiator.
Oh, sorry.
I think I might have been talking there with my mic muted.
So, BTC.b, what are some of the reasons people might use it over WBTC?
I know that it just means that the asset was bridged directly from Bitcoin rather than from Bitcoin to Ethereum, then Ethereum to ABEX.
Yeah, exactly.
So, basically, the native Bitcoin is obviously preferable than bridge Bitcoin from Ethereum and is even more preferable than, you know, utilizing a centralized service like WBTC or something like that.
This is obviously because, you know, it comes directly from the Bitcoin blockchain.
It leverages a decentralized network of folks that are basically, you know, managing the bridge also, which is definitely far better than a single custodian.
And so, our whole philosophy around that was that how can we create a better form of wrapped BTC that is more decentralized?
And how can we also allow for the large community of Bitcoin holders and, you know, Bitcoin fans to utilize their Bitcoin and DeFi, you know, instead of using a more centralized service?
So, yeah, that's sort of the high overview there.
I'm going to skip a few questions because I know you guys have to wrap up here in a bit.
But I did want to focus on some important things.
A lot of L1s currently general purpose.
But as more come in, you need to start differentiating yourselves.
So, I would love to talk about some of the sectors where ABEX is really starting to stand out.
So, DeFi, NFTs, and gaming, guys, if you would love, I mean, if you wouldn't mind just kind of going into each one of those and tell me about the different ways you guys are setting yourselves apart, that would be amazing.
Yeah, of course.
I can briefly cover DeFi and gaming and I can pass it over to Dan who will be able to cover NFTs.
But on the DeFi side, as mentioned before, Avalanche basically is able to leverage its consensus and its extremely optimized latency for financial products.
So, you'll see a lot of top institutional platforms building on Avalanche.
You know, for example, working closely with Golden Tree Asset Management, Aave, and Securitize to build a institutional DeFi subnet.
Now, this is great for them because they're able to configure their own network in a way that they're actually able to interact with DeFi in a safe manner that is compliant.
But while also being, you know, quick and fast.
So, that way, they don't have to basically wait for seconds, minutes, or even, you know, hours for confirmation.
So, that's definitely really useful there.
And with Avalanche Consensus, you're able to get things like, for example, Dexalot, which is a really interesting central limit order book subnet that's launching on Avalanche and products like that.
So, that's a really cool thing about Avalanche.
And I think because of its really robust DeFi ecosystem, you see a lot of innovation on, like, for example, the options side.
And there's also fixed yield protocols.
So, there's a lot of innovation that's going on on the DeFi side.
It's not just, you know, a bunch of forks, but actually a lot of traditional financial researchers that are coming over to Avalanche.
And they're using it because the tech is really promising for that.
On the gaming side, a lot of traditional game studios are building on Avalanche.
You know, we just announced a partnership with Gree, the Japanese mobile gaming giant.
They've partnered with folks like Square Enix, Bandai Namco, you know, like EA, Ubisoft, a bunch of major names.
And they're working with us primarily because, you know, they sort of described it that Avalanche subnets are the best poised for, you know, building games.
This is because the configurability, it allows them to be compliant in their respective regions.
And also, subnets are the only way for them to scale to millions and millions of users while being able to have, like, some second finality and good UX.
So Avalanche is becoming a hub for gaming on that side, not only on the traditional gaming side, where we are having many partnerships with game studios, but also brand new games are being built from the ground up on Avalanche as well.
So that's definitely quite exciting.
So I'd say stay tuned also.
This quarter, we'll be announcing one or two massive partnerships on the gaming side with some names that you guys might be familiar with.
I'll pass it over to Dan, who can close things out on some of the great things happening on NFTs.
And it was great chatting with you all.
Thanks for having us here.
Nikhil, thank you so much for coming on, man.
It's been a pleasure.
I'll give the quick rundown as well here.
Avalanche wants to be seen as the tagline shows, Create Without Limits Platform.
So we want to onboard several hundred creatives this year from traditional Web3 audiences and also non-Web3 audiences in different parts of the world that might not be seen as popularized for Web3 at this time.
I also want to highlight, and we have been doing a good job of highlighting native ecosystem artists.
So we want to keep on growing their platforms and getting them the promotional spaces to get involved and actually build their brands and their identities in this space.
Taking on some non-traditional approaches.
In short summary, we just announced a project with Ed Balloon, a well-known artist in the space, to do a concert series with himself, J-Ped Mafia, who's an awesome, awesome artist as well.
And Clipping, another great artist, to do a live concert with NFT focus in LA, where everybody just needs to basically have an NFT to get in.
It's a free ticket, and from there, the NFT will give you a lot more access to other things inside the concert experience as a whole, kind of showcasing a whole ecosystem of different partners in the Avalanche ecosystem with some really cool visuals and live music.
We're looking to push a lot of these kinds of things forward that aren't really being tackled or approached yet in other chains or other marketplaces to just have experiences that make you say, whoa, or wow, and showcase what Avalanche's technology did for many, and still does for many of the state, but a more intimate, tied experience.
And then, yeah, just proper representation of all types of artists and creatives long-term.
There are plans, obviously, for enterprise and supply chain side of things, but those are more longer-term plans.
And in turn, I think the best way to onboard is with a lot of the creative mindshare being experimental and open to create their next big piece here.
So, yeah, in the interest of time, I'm going to cut off there as well.
Yeah, of course.
I'm sure we can go all day, guys.
Listen, Daniel, I really appreciate you putting this together and bringing on other members of your team.
This is incredibly educational and informative.
We learned a lot as far as the tech is concerned, the different plans you guys have to innovate, the subnets, the different ecosystems you're building out with respect to NFTs, DeFi, and gaming.
One last question from both of you, since I still have you on here.
What excites you, and there's a lot that's coming up, but what excites you most if there's one thing that really gets you your blood boiling about 2023?
Share that with us, and then we can wrap things up.
Sure.
Yeah, happy to do that there.
So, for me, what I'm really excited about is that a lot of the great things on the Avalanche roadmap are coming together this year.
So, subnets have been live for a bit, we've talked about an interoperability protocol, but for the first time this year, we're going to have the ability for people, anybody, to spin up their own permissionless subnets this year for their own enterprise applications or general purpose applications, and there's going to be a protocol to allow them to all communicate all in one together.
So, that's the first thing that gets me really excited this year, that I think the roadmap is really coming together, and it's finally in a place where everybody can start testing things out.
We're going to get a Cambrian explosion of subnets this year.
The second thing I would say is that, is basically, from my side, I'm biased towards gaming.
There's a lot of really large gaming partnerships that we're going to secure this year, so I'd say stay tuned.
That's what gets me excited.
I'll pass it over to Dan, and then, you know, again, thanks everyone for having us on.
And, again, thanks for organizing this, Dan, and the rest of the team, such as Noah and WillCoinTalk.
Yep.
And on my side, infra, infra, infra, from AWM, our messaging protocol, to the ability to deploy subnets with more customization, to even at the creator contract side.
A lot of what is being done out there hasn't been done yet.
When I say out there, it's behind closed doors.
So we're really excited to kind of showcase these things at large scale to our audiences.
We can only tease, we can never please.
But, yeah, that's kind of where we're at right now.
Daniel, Nikhil, it's been a pleasure.
Audience members, if you enjoyed this, and I should have done this at the beginning when everyone else was in here,
but, you know, throw Daniel, Nikhil, CK, a follow.
If you like what you're hearing, throw the WillCoinTalk team a follow.
And WillCoinTalk community, remember that everything you hear on these broadcasts is meant for educational purposes only.
Nothing is financial advice.
So be safe out there.
That was the team at Ava Labs.
My name is Noah.
Signing out.
Take care.
Thanks for your time, y'all.
Appreciate it.
Thanks, everyone.
Cheers.
Cheers.
