Avalanche: A New Framework for L1 Development

Blockchain scaling solutions have undergone continuous evolution in recent years. For some time, the prevailing view was that the two most viable paths to mass adoption were modular and monolithic architectures. In a modular approach, scaling would rely on rollups and data availability layers built around a single settlement layer. Alternatively, a monolithic design would achieve scalability through a high-performance, generalized blockchain. These views were partly based on the assumption that multi-chain approaches, like the Cosmos ecosystem and its collection of app-specific blockchains, would continue to struggle to gain significant traction among crypto users. 

However, this assumption is now being challenged by the recent success of Hyperliquid, a popular perps DEX built on the Hyperliquid L1. Instead of becoming dominated by a single scaling approach, the blockchain landscape now reflects a world in which multiple approaches can co-exist simultaneously. As of this writing, Hyperliquid is the most widely-used perps DEX in the world, while Solana has come to dominate spot DEX volumes onchain, and Ethereum remains dominant in terms of both lending and stablecoin supply.