Aaron Buchwald, Software Engineer at Ava Labs, on Avalanche, Launching L1s, The Next Killer Crypto Consumer App, and The Future of L1s | Ep. 401

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January 3, 2025

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Aaron Buchwald, software engineer at Ava Labs, joined the Cryptonews Spotlight podcast to share his journey into blockchain, the Avalanche9000 upgrade, and his vision for the future of Layer-1s. If you don’t have time for the podcast, you can read the summary below.

From Aerospace to Blockchain

Aaron shared his journey from working on aerospace engineering projects, including lunar CubeSats, to joining Ava Labs in 2019 as an intern.

His passion for problem-solving and innovation led him to blockchain, where he now leads initiatives.

“Any time you have the opportunity to work in space travel, it’s just immediately inspiring. But I wanted to ask the questions and find the solutions myself.”

What is Avalanche9000?

Avalanche9000 represents a groundbreaking upgrade to the Avalanche ecosystem, drastically reducing the cost and complexity of launching Layer-1 chains.

Aaron explained how this update aligns with Ava Labs’ commitment to horizontal scaling and decentralized innovation.

“We’ve removed barriers to entry, so it’s trivially easy to launch a chain on Avalanche.”

Horizontal Scaling: the Avalanche Vision

Aaron discussed Avalanche’s horizontal scaling approach, which mirrors the decentralized architecture of the internet.

By enabling multiple subnets to operate independently yet communicate seamlessly, Avalanche ensures scalability without compromising decentralization.

“Horizontal scaling is the only reasonable approach to scale Web3 to the extent we want to allow.”

The Power of Avalanche Subnets

Avalanche subnets offer developers unparalleled flexibility to launch tailored blockchains while maintaining interoperability.

Aaron highlighted how this ecosystem fosters experimentation and innovation.

“Interchain messaging means all Avalanche L1s benefit from the collective success of being able to talk to each other and transfer assets.”

Democratizing Blockchain Development

Avalanche9000 eliminates validator requirements and dramatically reduces staking costs, empowering a broader range of developers to build Layer-1 chains.

“The upgrade makes launching an L1 99.9% cheaper—opening the door for a Cambrian explosion of Avalanche L1s,” explains Aaron.

Addressing Ethereum’s Trade-Offs

Aaron noted the limitations of Ethereum’s general-purpose infrastructure, which often forces developers into inefficient solutions.

“Many applications are trying to manage state on Ethereum, but it’s like fitting a round peg into a square hole,” he said.

Avalanche’s customizable SDKs address these pain points, offering high-performance alternatives.

The Return of L1s in Crypto

Aaron observed the industry’s renewed interest in Layer-1 chains, driven by concerns about value accrual and the limitations of Layer-2 solutions.

“L1s and L2s each have trade-offs. But the narrative is shifting back to L1s as developers rediscover the value of owning the vertical stack.”

HyperSDK: Game-Changer for L1s

“HyperSDK makes it as easy as possible to launch high-performance blockchains with customizable stacks.”

Ava Labs’ HyperSDK empowers developers to build application-specific blockchains, optimizing for performance, state management, and user experience.

The Next Crypto Killer App

Aaron speculated on the potential killer app for crypto, pointing to Web3’s ability to reward users and foster engagement through tokenized incentives.

“Payments are the classic answer, but I think incentives and gamification could be the killer differentiator for Web3.”

Web3 Gaming: Off the Grid Example

“Hardcore gamers who don’t care about crypto are playing Off the Grid and saying, ‘I don’t care about crypto, but this is awesome.’”

Aaron highlighted Off the Grid, a first-person shooter built on Avalanche, as a prime example of how high-quality games can integrate blockchain elements without alienating traditional gamers.

Data DAOs and the Power of Incentives

“A DAO is one way to coordinate among a decentralized set of consumers—but it’s hard to solve the cold start problem without incentives.”

Aaron shared his admiration for projects like Vana Network, which uses tokenized incentives to solve adoption challenges in decentralized data marketplaces.

The Importance of Experimentation

Aaron emphasized the need for developers to iterate and innovate on modern blockchain infrastructure to realize the full potential of Web3.

“We’ve built a huge amount of infrastructure that’s way more performant than it was 5–10 years ago. Now it’s time to experiment.”

Fostering Competition in Blockchain

Aaron predicted a wave of competition and experimentation, where developers test different blockchain architectures to find the best solutions.

“One team might build on a decentralized, permissionless chain, while another uses an app chain to deliver a better experience. The best execution will win.”

Closing Thoughts: Building for the Future

“We’re going to see applications we’ve dreamed about for years finally becoming a reality. This is the most exciting time to be in crypto.”

Aaron concluded with an optimistic view of blockchain’s future, fueled by technological advancements and a clearer regulatory environment.