Home CryptocurrencyBitcoin Ava Labs and Amazon partnership could ‘expand the pie’ for blockchain

Ava Labs and Amazon partnership could ‘expand the pie’ for blockchain

by SuperiorInvest

Amazon Web Services (AWS) – Avalanche “cooperation“, as it was carefully described last week should make it easier for developers to create nodes on the Avalanche blockchain almost immediately, including through “one-click node deployment.”

Ultimately, it could also make it easier for everyday businesses – i.e. non-crypto-related businesses – and even individuals to set up their own subnets, such as smaller, private Layer 2 blockchains.

But perhaps the standout message from the January 11 announcement is that the blockchain revolution isn’t just about cryptocurrencies. It is also about such prosaic things as storing documents more securely and sensibly so that they can be retrieved quickly in an emergency. It includes decentralized finance (DeFi) and non-fungible tokens (NFTs), but also brings “scalable blockchain solutions for enterprises and governments,” including such boring but important use cases as compliance management, Ava Labs, creator of Avalanche, he said last week.

IN webinar On Jan. 12, which included both Ava Labs and Amazon Web Services representatives, Ava Labs VP John Nahas explained, “Crypto products or crypto infrastructures up until this point have been very tailored to suit crypto-native people. […] Here we need to expand the pie. We need to expand the developers, the companies, the people who will use this technology en masse to bring more people into this ecosystem.”

“False partnership”?

The Avalanche Community generally welcome news about Amazon Web Services, but others took issue with some of the language and claims, such as Ava Labs CEO Emin Gün Sirer claim that “This is a big deal. It’s not your grandfather’s “AWS Partnership Announcement.”

It was really a “partnership”, some questioned, or just a bloated “use of services” agreement.? Perhaps Amazon Web Services was really more of a “technical aggregator” than a collaborator? Haven’t other layer 1 chain developers like Casper Labs already “partnered” with the tech behemoth to allow developers directly put on node infrastructure or designing private networks through Amazon? The developers really were invited in May 2021 “set up your own managed Ethereum node” on Amazon Managed Blockchain, right?

IN tweetAlejandro Pastore, CEO of Pastore Capital, described the announcement as a “fake partnership between @avalancheavax and @amazon” where Ava Labs “sold us a service rental disguised as a connection to Amazon.”

Be that as it may, the Jan. 12 webinar featured three Ava Labs executives, including President John Wu, who appeared alongside AWS Global Technology Lead for Web3 Shai Perednik and Bradley Feinstein, head of Web3 at Amazon Web Services. Specifically, Feinstein used the word “partnership” to describe the new Ava-AWS association, and no one in attendance objected. AWS and Ava Labs will hold another joint webinar in February and a co-sponsored hackathon in May, they announced.

More important, perhaps, is the larger question: What, if anything, does this association mean for blockchain development in general?

Catalyzing innovation

“Avalanche seems to get the best shelf space on AWS among blockchain platforms,” ​​Matthew Sigel, head of digital asset research at VanEck, told Cointelegraph. Enterprises looking to run blockchain-based applications from their AWS environment will get the best support and pricing if they choose Avalanche, Sigel further noted, adding:

“On Twitter Spaces with representatives from AWS and Avalanche, AWS is committed to marketing, education and discounts for businesses running Avalanche subnets within AWS.”

The collaboration could also have some positive spin-offs in the industry, which could be a catalyst for “meaningful innovation in the space,” according to Sigel. It may now be easier for businesses to run permissionless blockchains faster and easier if Amazon Web Services becomes an active presence in this market.

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Amazon isn’t the only tech giant moving in this direction, either. “Recall that in November, Google Cloud launched what appears to be a similar partnership with Solana,” Sigel said. With so much computing moving to the cloud, it’s “positive to see this kind of commitment from the big providers.”

“The main news is that we see Amazon Web Services supporting the Avalanche blockchain ecosystem,” Sarson Funds analyst Evan LaMontange told Cointelegraph, enabling the integration of Avalanche’s own subnets into the AWS marketplace. It will allow individuals and institutions alike to run subnets that can function as self-sustaining blockchains. systems. Added by:

“This has given rise to a new vision of scalability that allows entities to easily develop their own standalone blockchain systems.”

But others doubted that the new collaboration would gain industry-level significance. “It certainly means that starting/running AVAX nodes is easier on AWS,” Freddy Zwanzger, head of the Ethereum ecosystem at Blockdaemon, told Cointelegraph, but “there are already other blockchain nodes/templates available from different cloud or hosting providers.”

Any improvements with regard to running blockchain infrastructure are of course positive, Zwanzger added, “but our institutional customers expect best-in-class service from us as an institutional infrastructure provider,” which includes specialized setups.

Elsewhere, Howard Wright, vice president and global head of startups at AWS, she called The company’s tie-up with Ava Labs is a “pivotal moment,” an inflection point where blockchain technology becomes “commonplace and used by developers in our market.”

Some comments on Twitter suggested that the announcement was designed mainly to pump up the price AVAX chip. “This is not the first time this has happened in this market,” he remarked Pastore in his 15-part Twitter thread. “This market is full of manipulation,” he adds:

On the other hand, almost All coins surged after the announcement, and that likely had more to do with favorable interest rate news than anything specific to the crypto world. Comparing the price movement of AVAX with Bitcoin (BTC) and Ether’s (ETH) over a seven-day period from January 10 to 17, Cointelegraph found AVAX was +34%but BTC and ETH were not that far behind with +24% and +19% respectively.

Unusual tripartite structure

Blockchain Avalanche, which launched in September 2020, has some unique features. It actually consists of three individual blockchains: X-Chain used exclusively for sending and receiving funds, P-Chain for staking and validator activities, and C-Chain for smart contracts and DeFi applications.

“Avalanche blockchains even use different consensus mechanisms based on their use cases,” comment CoinMarketCap. It’s not like BTC or ETH where all nodes verify all transactions. This division of labor probably increases the speed of transactions.

Actually Avalanche claims to be the fastest smart contract platform in the industry, measured by time to completion. It also has the most validators according to Ava Labs securing its activity with any proof-of-stake protocol.

Others also recognize its merits. “Avalanche offers near-instant finality and cost per transaction,” said Sigel. “Ethereum settles much more slowly at a higher price. Ease of use could also differentiate Avalanche from other chains going forward, as AWS can make it easier to launch an Avalanche subnet, he added.

Working with governments

Ava Labs seems more interested in supporting government entities than some of the other blockchain developers. In November 2021 it he announced a “strategic alliance” with Deloitte to build a blockchain-enabled “disaster recovery platform” that will allow state and local governments to more easily demonstrate eligibility for federal emergency funding.

Government is still an “under the radar” area for blockchain applications, Ava Labs senior vice president Nick Mussallem said in a webinar, noting Ava Labs’ “partnership” with Deloitte in working with communities and government agencies like FEMA on blockchain applications that reduce administrative costs:

“It [the blockchain] helps expedite recovery by organizing the documentation needed to demonstrate eligibility [for funding]. It simplifies retention by securely storing and connecting all related documentation to Avalanche.”

‘Subnets serving as appchains’

The blockchain world is changing and Amazon is trying to get on board. At least that’s the signal the Ava lab was sending out last week.

“AWS recognizes how blockchains are evolving, with subnets serving as appchains, and wants to be one of the hosting providers for the many subnets that people are going to launch,” he said Width.

Recent: Application-specific blockchains remain a promising solution for scalability

Perhaps Ava Labs went a little too far when it claimed a “partnership” with Amazon — which is like the moon claiming a partnership with the sun. But Ava Labs should be commended for looking beyond use cases aimed exclusively at crypto natives, leveraging the flexibility, scale and power of AWS to allow developers to create subnets for use by everyday businesses and government agencies, among others.

After all, if blockchain technology is ever to achieve mainstream status, subnet after subnet will be created – including use cases as mundane as document storage and the like.

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