Global financial markets are highly illiquid and suffer greatly from lack of reach. It is difficult to digitize new assets and find corresponding buyers and sellers. Decentralized platforms, like Bitcoin, Ripple, or Ethereum, have the potential to solve some of these issues because they facilitate digitization and programmability of assets. Unfortunately, current offerings fundamentally lack the necessary performance guarantees, feature set, and architectural design.
First Product: Financial Services
The AVA platform is a radically efficient, performant, modular, and composable decentralized services platform. It builds an “Internet of Active Assets”. The first goal is to greatly simplify the creation, discovery, and trading of existing and new types of assets, and thus greatly reduce costs associated with deploying capital. In order to reach this goal and serve the complex needs of international markets that span multiple jurisdictions, there needs to be a permissionless platform where clients can create compliant and secure networks for their own specific needs. Thus, AVA implements a universal language, network, and marketplace for the creation, discovery, storage, and swapping of active assets. The AVA platform enables third-party token issuers to interact in one unified platform, which allows them to lower their costs to list and trade, while also benefiting from compounding network effects.
The AVA network provides the infrastructure for the deployment of trustless and reactive (micro)services, which include active assets (assets that react autonomously to new information), decentralized applications, and other primitives. All services are able to interoperate easily, as well as run inside isolated execution environments (subnetworks) that allow developers to deploy purpose-built and feature-specific services (e.g. compliance, privacy, etc.).
The AVA platform enables the deployment of new subnetworks for the issuance, trading and settlement of digital assets. Developers will be able to wholesale move existing decentralized applications, as well as build new types of highly expressive assets that run intelligently and obey special rules. The platform includes, but is not limited to, the following features:
-Reactive smart assets, which are powerful processes that autonomously interact with other assets based on internal business logic. These processes have the ability to monitor and automatically react to specific network changes, through the use of observables
-Subnetworks that obey specific rules, covenants and riders. Subnetworks include a built-in firewall that allows compliance by construction, i.e. assets that automatically obey restrictions, thus reducing overhead costs (i.e. auditing and authentication)
-Flexible, modular, and composable (micro)services. These can be thought of as “plugins”, which allow developers to seamlessly augment subnetworks with a wide array of new features
Powering the AVA platform is the Avalanche consensus protocol. This protocol represents a technical breakthrough in distributed systems, and enjoys the following properties:
-High immutability/security (decentralization through thousands of nodes)
-Performance (thousands of transactions per second)
-Low confirmation times/latencies (1-2 seconds of finality)
-Robustness (suited for open, permissionless settings)