Do we need more decentralised platforms when popular ones like Bitcoin, Ripple and Ethereum have hinted at the potential to transform finance because they facilitate digitisation and programmability of assets?
Emin Sirer, CEO of US-based blockchain start-up AVA Labs and professor at Cornell University, told TechRadar Middle East, on the sidelines of the World Blockchain Summit held in Dubai, that many existing assets suffer from lack of liquidity and reach while many more types of assets are not yet ready in digital form.
“Unfortunately, they fail at basic fundamental requirements such as high performance, rich feature set, flexible and un-opinionated architectural design, ease of use, legal foundation and regulatory compliance, and interoperability with existing infrastructure,” he said.
He added that the engines of the present platforms are weak.
“Bitcoin can process 7 transactions per second (tps) while Ethereum can process 15 tps. Latency will take minutes to hours compared to a credit card transaction of 10 seconds. Almost all current blockchains are poorly decentralised and thus highly vulnerable,” he said.
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Fast, scalable and customisable platform
Moreover, Sirer said that blockchain is a proven technology but Bitcoin and Ethereum lack the scale necessary to track demanding applications beyond cryptocurrency.
For example, he said that if you put Venezuela on the bitcoin blockchain, it is capable of one transaction per adult every 36 days.
“Bitcoin is the most powerful cryptocurrency as a financial commodity but when we look at the technical point of view, there is no progress and scale,” he said.
“We need blockchains with much higher capacity and that is why we are launching AVA, a powerful new platform for financial markets and decentralised applications that aims to tackle some of the toughest problems in the financial ecosystem today,” he said.
However, he said that Ava is not competing with Bitcoin and what AVA is trying is to capture digital assets.
“AVA is a fast, scalable, customisable and modular platform for creating, discovering and trading digital assets frictionlessly. It offers customisable marketplaces for deploying and exchanging assets in a secure and compliant manner,” he said.
AVA uses Avalanche protocol and can process 6,000 tps in less than two seconds, he said, and much faster than Visa. AVA platform will be launched in the first quarter of next year.
Athereum, a spoon of Ethereum, is the first subnetwork supported on the AVA platform and is comprised of multiple different subnetworks and support different types of decentralised apps.