In the bull market in 2021, many high TPS L1 public chains emerged to meet the demand overflow from Ethereum, and Avalanche is one of the best.
Its token AVAX once rose to over $135, creating the “Avalanche myth”. Some crypto funds have also gained industry recognition for their investment in Avalanche.
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However, in the following bear market, the Avalanche token also suffered a severe decline.
Moreover, with the launch of many L2 solutions on Ethereum such as Arbitrum, OP Mainnet, zkSync, Starknet, Base, Polygon zkEVM, they directly meet the demand of the Ethereum mainnet.
Applications in the Ethereum ecosystem may be difficult to overflow to other L1 public chains like Avalanche in the future.
Avalanche needs to prove itself and go through a complete cycle of tests.
Recently, LianGuai interviewed Garrison Yang, the VP of Growth and Strategy at Avalanche, to learn more about the recent developments of Avalanche and how it faces competition from Ethereum and numerous L2 solutions. Where are the future use cases of Avalanche?
LianGuai: In the previous crypto cycle, the demand overflow from Ethereum promoted the development of many L1 public chains, including Avalanche. However, these L1 chains have been quiet in the bear market. So, could you please introduce the recent developments of Avalanche?
Garrison Yang: Avalanche is quietly thriving. We have been promoting games on Avalanche and publicizing our investments in partners in the Asia-Pacific region. We are also very focused on launching our enterprise blockchain product, AvaCloud, and we have seen a lot of interest from institutions and enterprises who want to build their own customized blockchains. Institutional partnerships and RWAs are another focus area for us, and we have made significant progress in tokenization with recent projects like Vista Fund, Evergreen and Spruce subnets, and KKR Fund and other RWAs.
LianGuai: Now there are multiple L2 solutions rapidly developing on Ethereum. Will they impact L1 public chains like Avalanche? How does Avalanche respond?
Garrison Yang: We do see many very similar L2 solutions appearing on Ethereum. I think developers realize that Ethereum itself is not the complete solution for Web 3, and this is a step in the right direction.
Avalanche has a similar goal. We hope to build a network that, together with other ecosystems like Ethereum, achieves the Web 3 vision of mass adoption that we all want to achieve.
The recent addition of L2 solutions means that users now have many choices, and there are also many choices for native crypto dApps that used to run on public blockchains. This is a good thing!
Our focus is on building a network that can provide services for these users and developers, as well as feasible blockchain solutions for enterprises and users that are not currently served by blockchain.
Institutions, enterprises, large-scale games, and many other applications do not work well on a shared blockchain. They require flexibility when it comes to their tokens, gas economy, validators, compliance, and other functionalities. Avalanche provides this technology. I believe we are not an L1 blockchain, but a network where both native crypto developers and Web 2 companies can build their own chains or choose to deploy on Avalanche’s C-chain.
LianGuai: One of the main reasons for the prosperity of the Ethereum ecosystem is its active developer community. How does Avalanche attract developer communities and projects?
Garrison Yang: Our approach is simple: we spend time with developers and create support programs. We have community teams around the world that organize events of various sizes. Our DevRel team provides excellent support both on-site and digitally. We recently supported a local hackathon in Vietnam, just launched a hackathon specifically for university students in Hong Kong, and introduced Encode, another program specifically for supporting university students – the next generation builders.
We have just soft-launched a program called Avalanche Academy, where any developer can register and participate in a series of courses, from deploying smart contracts to launching and configuring their own subnet. We will continue to build the content of the Academy and provide it for free to all developers.
I cannot disclose too much, but we also have a program called Codebase coming soon, aimed at supporting developers and innovative projects. There is a lot of content in this area that will be launched soon.
LianGuai: There are two types of Web3 games: native Web3 games, such as x2eran’s GameFi, and Web3 games built on-chain by traditional game developers. Which type of game do you think will attract more players to Web3?
Garrison Yang: Nowadays, Web3 games built on-chain by traditional game developers may be a more effective way to attract players to Web3. Native crypto games are suitable for native crypto audiences, but most players are not willing to set up wallets, learn about cryptocurrencies, and skip other obstacles just to play games belonging to the GameFi category.
LianGuai: Avalanche launched the Avalanche Vista program to enter the RWA track, planning to purchase $50 million worth of RWAs. What do you think of RWAs? What are Avalanche’s plans in the RWA field?
Garrison Yang: Our mission has always been to “digitize global assets,” and tokenizing RWAs is not something new to us, although we have just publicly announced the Avalanche Vista program. Vista and Evergreen are the results of our institutional team’s years of efforts. These partnerships take a long time to build, and we are excited to finally share them with the public.
We have spent a lot of time collaborating with institutions and providing advice on how they can use cryptocurrency channels. We believe that a new era of on-chain finance, or “OnFi,” is rapidly approaching. With our expertise, partnerships, and compliance technology, Avalanche is in a favorable position to lead the tokenization of RWAs. Recently, Securitize launched a tokenized equity for a real estate investment trust (REIT) on Avalanche, with trading expected to begin in September.
Our goal is simple: to bring institutional liquidity onto the blockchain and provide democratized access to assets through tokenization.