What is Avalanche(AVAX)? In an economic system with fractional-ties (Fractional Share Ownership), there are two major ways to raise capital for a business: debt and equity. However, both debt and equity require long-term commitment, whereas the most cost-effective way to raise money through an entrepreneur funding program is through smart contract technology that utilizes digital asset management. This article will explore how a decentralized network ofitalized entrepreneurs will collectively pool their creative ideas and assets to launch new projects and create value within the NFT (Nanotechnology-based Future Technology Platform).
The decentralized form of venture capital financing enables projects to be launched quickly, at low costs and with significant level of security. Through smart contract technologies, new projects can be created that require no initial cash outlay. Transactions can be immediately executed between multiple parties, while retaining complete confidentiality and control of the underlying assets. Additionally, these transactions can be seamlessly integrated with other existing transactions on the decentralized network. This facilitates a synergy of liquidity providers and value providers on the network. As well, the liquidity providers can instantly respond to demand by selling their existing account balances to accommodate any upcoming demand from the value providers.
Avalve is an open-source software platform that is used to facilitate the execution of both private and public decentralized finance functions. Its underlying concept is to provide a platform for the global community to come together to advance the collective goal of financial freedom. As a result, this platform enables a new market for entrepreneurs to enter the ecosystem and make money by providing equity financing to up-and-coming startups or by helping to underwrite certain projects.
What is the problem with the current model of decentralized finance? The main problem is that most of the models being used today are not truly viable. For instance, the most popular form of fundraising in the decentralized finance realm is the sale of tokens. These tokens serve no real purpose other than to provide revenue for the developers and creators of the project. Due to this flaw, tokens cause rapid decay in value.
We believe that the team at Avalanche will take a fresh approach to solving problems of scalability and liquidity. In addition, they will do this in an approach that leverages the power of the Waves Protocol to reduce transaction fees and boost liquidity. With this approach, we believe we will see a rapid growth of projects that utilize the Waves Platform as a mainnet protocol.
Unlike other projects in the decentralized finance space that have taken on costly solutions like the development of smart contracts, the Waves Platform does not have these problems. The Waves Developers are well aware of the fact that users must be able to validate any and all transactions. This is where the idea of a Validation Server comes into play. Once the Waves Validation Server is up and running, validating transactions will be instant and cheap, leading to a cheap and reliable form of decentralized verification.
What is the problem with hard forks? Hard forks are disruptive, polarizing, create market confusion, cause increased forks, and generally lead to issues with consensus building. In our opinion, the Waves Developers have not effectively taken care of the three-blockchain problem. We believe a team led by the Waves Platform's Lead Developer, Blythe Masters, will take a fresh approach by addressing these concerns, along with other concerns, during the course of the next year.
While this is a complex issue, we believe that Blythe Masters and the rest of the team behind the Waves Platform should address it during their next release. In our opinion, the Waves Software will continue to innovate on multiple fronts, gaining scalability, instant liquidity, more efficient transaction scalability, better regulatory support, more efficient asset management, and a more efficient platform for digital asset exchange. In short, we believe the team has a lot of work in front of them if they are going to successfully meet the scalability needs of the overall decentralized finance market.
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