Ava Labs’ John Nahas says Avalanche is betting on sovereign, purpose-built blockchains, targeting around 200 institutional and corporate chains in finance and AI.
Summary
- Ava Labs’ John Nahas says Avalanche’s growth comes from purpose-built chains for specific use cases, not from chasing three-month crypto Twitter stories.
- Avalanche is approaching 80 live Layer-1 chains, of which more than 100 are on the testnet, and is targeting approximately 200 institutional and enterprise networks next year.
- Companies like Toyota, FIFA and SMBC are building separate Avalanche environments as banks, asset managers and enterprises demand dedicated blockchain rails.
Ava Labs is pursuing a long-term strategy focused on purpose-built blockchains as the cryptocurrency market continues to cycle through short-term trends, according to the company’s Chief Business Officer.
John Nahas, Chief Business Officer at Ava Labs, discussed Avalanche’s (AVAX) expansion across traditional financial markets, global brands and enterprise operators in an interview with TheStreet Roundtable’s Jackson Hinkle.
Nahas attributed the network’s growth to Avalanche’s underlying architecture and focus on building blockchains designed for specific use cases rather than following short-term market trends.
Avalanche and the leadership of AVA Labs
“If you’re hyper-focused on the crypto stories on crypto Twitter, or these things that come and go for three or four months, you’re always playing catch-up,” Nahas said. “Where we have been successful is in the medium to long term. Things that are worthwhile take time.”
Avalanche, which regularly ranks among the top 15 cryptocurrencies by market capitalization, is positioning itself around the proposition that the next phase of cryptocurrency will be built around sovereign, purpose-built layer 1 blockchains rather than a single chain that serves all functions.
According to Nahas, much of the industry is operating under what he described as a “first-generation business plan,” based on the assumption that all operations will eventually settle on one network.
“We don’t need more block space. We don’t need more blockchains,” Nahas said. “But we do need more blockchains that are purpose-built, because that’s how the real world works.”
The company’s corporate roster reflects this approach. “Banks want their own environment. Asset managers want their own environment. Companies want their own environment,” Nahas explains.
Toyota is building four different Avalanche chains, each designed for a different workflow, Nahas said. FIFA and SMBC in Japan are also building independent environments on the platform.
Avalanche supports private, public permissionless and hybrid chains that can all work together, the company said.
“You’re effectively giving people solutions instead of giving them a solution in search of a problem,” Nahas said.
The platform is approaching 80 Avalanche layer-one blockchains with more than 100 on testnet, according to Nahas. He predicted that next year there will be about 200 institutional and corporate chains active in the areas of finance, identity, artificial intelligence and government.
