In an evolving blockchain landscape, Avalanche has introduced Proposal ACP-77, which aims to redefine the way we think about dedicated blockchains and validator structures. This proposal is not just another incremental update but a significant leap towards making Avalanche subnets more accessible, cost-effective, and competitive in a rapidly growing market. Here's an in-depth look at what ACP-77 entails and why it could be a game-changer for blockchain developers and users alike.
Introduction to ACP-77
Avalanche Community Proposal 77 (ACP-77) introduces a new type of validator known as "Subnet Validators." This innovative approach significantly lowers the barriers to entry for launching dedicated blockchains (subnets) by reducing hardware requirements and upfront costs. Additionally, it implements a continuous fee mechanism where subnets pay fees to the P-Chain, the primary Avalanche chain, ensuring sustainability and economic alignment.
The Competitive Landscape
To understand the importance of ACP-77, it's essential to compare Avalanche's approach with other leading blockchain solutions. Recent advancements, such as Ethereum's EIP-4844, have drastically reduced rollup costs, making rollups a popular choice for dedicated blockchains. For example, OP Stack chains currently cost around $2/MB for posting data to the Ethereum mainnet, compared to $15/MB for Arbitrum and $150/MB for ZKSync.
Leveraging Paradigm's recent research, which suggests evaluating EVM performance based on Gas Per Second (GPS) rather than Transactions Per Second (TPS), Blockworks Research proposes a new standard for assessing EVM unit cost structures. This provides a clearer picture of the economic efficiency of various blockchain solutions.
Why Launch a Dedicated Blockchain?
Dedicated blockchains offer several advantages over shared execution environments:
Performance: High demand on Ethereum mainnet leads to high costs for end users, while Solana's congestion issues have made it unreliable at times. Dedicated blockchains provide more predictable performance and costs
Customizability: Shared state machines like Ethereum and Solana limit developers' ability to tailor their applications. Dedicated blockchains allow for greater customization, enabling developers to optimize the user experience and implement unique features.
Value Capture and Token Demand Drivers: Dedicated blockchains can capture value at multiple layers, creating new demand drivers for native tokens. For example, DeFi Kingdoms' architecture choice has made its native token JEWEL the fee token, driving demand based on the chain's success
The Future of Dedicated Blockchains
As crypto applications mature, the need for customizability, performance, and value capture will drive developers towards dedicated blockchains. ACP-77 positions Avalanche as a leading platform for building high-performance, interoperable blockchains. It offers a theoretically cost-effective way to launch a blockchain with redundancy to prevent liveness faults and ensure native interoperability.
Conclusion
ACP-77 is a bold step towards ensuring Avalanche's competitiveness in the blockchain ecosystem. By introducing Subnet Validators, the proposal lowers the barriers to entry, reduces costs, and enhances the overall value proposition of Avalanche subnets. Blockworks Research supports ACP-77 and advocates for future proposals that focus on long-term cost structures, further solidifying Avalanche's position as a premier platform for dedicated blockchains.
As the blockchain space continues to evolve, Avalanche's proactive approach with ACP-77 could set a new standard for dedicated blockchain solutions, attracting the next wave of crypto app developers and mainstream adoption.
