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Avalanche, Alibaba Cloud to Boost Infrastructure

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Avalanche announces partnership with Alibaba Cloud for its AVAX Nodes-as-a-Service (NaaS). The partnership will enable developers to launch Avax nodes through Alibaba Cloud services and access computing, storage, and distribution resources with its servers located in Asia.

This comes as both a development and milestone for Avalanche as it continues to bridge existing Web2 players into Web3. Ava Labs COO Kevin Sekniqi was thrilled to announce the partnership on his Twitter account.

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On the website, Alibaba Cloud are now hosting instructional documentation on launching an Avalanche node using a VPS, supplementing the service with infrastructure tools at Web2 prices. The campaign with Alibaba is currently seen offering user acquisition coupons on its website in order to attract more developers to build atop the Alibaba Cloud ecosystem.

Avalanche developers can use Alibaba Cloud’s services to launch new validator nodes and can customise its computing infrastructure according to the documentation. Currently, a new Avalanche validator requires 2000 AVAX tokens staked. Whether it remains profitable to do so on the Alibaba Cloud service, is yet to be determined.

According to the Avalanche announcement, Avalanche is currently secured by more than 1,200 validators and processes on average two million transactions on a daily basis. Avalanche is breaking new all-time highs in user activity, including 133M aggregate transactions in Q3 2022, a +1,678% increase over Q3 2021.

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The partnership with Alibaba Cloud is seen as a move for Avalanche to continuously secure its network as it goes wide, further towards decentralisation. The Avalanche ecosystem is famously noted for its use of subnets over sidechains for scaling its flywheel. Essentially, this allows builders to own their own ‘mini-but-powerful-blockchain’ where subnets acts as sovereign blockchain ledgers with transaction finalities occurring within seconds, native to the subnet. The economics such as gas fees, transaction time and data access permissions are also customisable within the subnet.

The caveat here is that it is simply more expensive, requiring a validator node (upfront capital) on Avalanche at minimum, and more computing requirements as the subnet scales. However while the cost scales, it can potentially be offset through the AVAX rewards earned from staking AVAX tokens on the validator nodes.

More transactions on the Avalanche network will also trigger the network’s burn-over-time affecting its value. But it requires an extremely large scale of transactions to happen before the burns can have any substantial impact on its market cap.

Avalanche is currently at a growth stage given its barrage of announcements and partnerships made for the month of November, highlighting its achievements in a Twitter post.

As of writing, Avalanche is currently ranked #20 for market cap and is currently trading at US$14.27, up 4.1% in the last 24 hours.