Institutions Are Building the Future with Avalanche

Since its invention, Blockchain’s most transformative possibilities have always seemed to belong to the future, to a time several years and tech advances away. Today, this has changed. Avalanche has taken the necessary tech leaps and is now making once-unattainable use cases a reality. Using Avalanche, even the largest institutions can finally build their dream Web3 projects.

Thanks largely to two major breakthroughs — Avalanche Consensus and Subnets — Avalanche has the speed, security, reliability, flexibility, and scaling to power institutional Web3 apps serving millions of users. In fact, Avalanche is now or will soon be the foundation for institutional Web3 projects in fields including finance, insurance, payments, vehicles, entertainment, culture, and many more. Despite the crypto market downtown, many executives are more bullish on Avalanche now than ever.

What makes Avalanche such a powerful platform for institutions? And what transformative projects are the enterprises leading the charge into Web3 building on Avalanche now?

Let’s take a closer look.

What Makes Avalanche a Powerful Platform for Institutions?
Speed and Security
Avalanche is the fastest smart contract platform by time to finality. You don’t wait for transactions to finalize. They finalize faster than your browser can refresh the balance, meaning you can move on to the next thing instead of waiting for funds to arrive. This speed is only possible through Avalanche Consensus, a method of sub-sampling of validators that marks just the third consensus mechanism in the field of distributed systems, and the first major breakthrough since Satoshi Nakamoto introduced Bitcoin to the world. Further, Avalanche Consensus enables decentralization of network security on a mass scale, already reaching more than 1,400 validators in less than two years. Each of these validators participate in block production, rather than a small subset of mining pools or network-defined leaders to gather votes.

Scaling and Customizability
Subnets are Avalanche’s other revolutionary breakthrough. Launched in spring 2022, Subnets are app-specific Avalanche blockchains that institutions can customize to their needs, tailoring economics, gas fees, VMs, and compliance with laws or KYC. These empower the network to scale infinitely and applications built on the network to scale on-demand. Subnets eliminate traffic jams, delays, and the fee spikes seen on monolithic blockchains.

Low Barrier to Launch
Any institution, developer team, or individual person can launch their own Subnet. It takes as little as 12 hours. Subnets get their speed, security, and reliability from Avalanche’s Primary Network. For more, read our intro to Subnets post.

How Are Institutions Building on Avalanche?
Deloitte
The accounting firm Deloitte is using Avalanche’s technology to accelerate disaster recovery. The program, Close As You Go, simplifies and streamlines FEMA Public Assistance payments to state, local, and select non-profit groups that spend funds preparing for or responding to natural disasters. Close As You Go uses Avalanche technology to improve security, minimize waste and fraud, and maximize trust between all parties.

The reimbursement process has many steps, strictures, and actors. Parties submit applications to FEMA for reimbursement. They must show eligibility, that they have legal jurisdiction, that their expenditures are reasonable, and more. Using Avalanche to track applications and show exactly where each one stands at any given time creates certainty. This is because Avalanche provides heightened security. Data recorded by the network is tamperproof. Avalanche also helps automate the application process.

But why Avalanche and not another blockchain? Deloitte has cited Avalanche’s transaction speeds and Ava Labs’ fluency with how blockchain fits into enterprise software. Deloitte also calls out Avalanche’s eco-friendliness, which aligns with the firm’s commitment to sustainability.

Lemonade
Due to limitations of traditional insurance, many farmers across the world are uninsured. Lemonade, a full-stack insurance carrier that operates in the U.S. and parts of Europe, will be providing insurance to farmers in the developing world using a platform that leverages Avalanche.

To do this, Lemonade will be using Web3

components. Smart contracts will replace traditional insurance policies. Oracles that can feed information like real-time weather data will replace claims professionals. Farmers will make crypto payments for “policies” using Avalanche. The system will be permissionless. Insurance will be provided through a DAO, The Lemonade Crypto Climate Coalition.