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Everyone knows the story of Amazon and how it made Jeff Bezos the richest man in the world.
But what people often forget is that Amazon didn’t get there just by selling things online…
In the early 2000s, Amazon launched a website called merchant.com.
The company designed the platform to help third-party retailers build their own websites atop Amazon’s already existing e-commerce engine.
This would allow companies to tap into Amazon’s proven infrastructure… And
Amazon itself could make a pretty penny from selling this service.
But the project proved more difficult than developers initially thought. You see, many retailers’ networks weren’t compatible with merchant.com. So they couldn’t connect to the website.
To fix this problem, Amazon developed software that allowed outsiders to easily connect to its servers. To do it, they used an application programming interface (API).
As the name implies, APIs allow different applications to talk to each other. And just like that, retailers like Target and Marks & Spencer could now integrate their applications into Amazon’s existing infrastructure.
This proved to be a huge boost to businesses. Amazon’s platform made it easier and faster for retailers to scale their online operations.
That’s when Bezos had a lightbulb moment: If retailers could build e-commerce websites on Amazon’s platform, any type of business could build on top of it.
That’s how Amazon Web Services (AWS) was born.
AWS started as a simple platform to store data. But because of its advantages of
speed and efficiency, it quickly evolved into a cloud computing giant.
For those who may not be familiar, cloud computing allows users to remotely
store, manage, and access data. Unlike the old days of storing everything on
local hard drives or servers, it’s like outsourcing this storage need.

Thanks to cloud computing, users and organizations can streamline operations
and optimize their time and resources.
Today, all types of corporations, government agencies, and institutions use AWS
for their cloud computing needs.
AWS’s roster of clients includes a who’s who of blue-chip companies, from
automotive giant BMW… financial powerhouse Capital One… iconic fast food
chain McDonald’s… and major U.S. government agencies like the U.S. State
Department and NASA.
Check out the box below for a list of companies and agencies that have publicly
gone on record as using AWS. And these are just a tiny handful of them.
Examples of Companies That Use Amazon Web Services
Adobe, Airbnb, BMW, Bristol Myers Squibb, Canon, Capital One, Coinbase,
Comcast, Disney, Dow Jones, European Space Agency, Expedia, General Electric,
Harvard Medical School, Johnson & Johnson, Kellogg’s, Lamborghini,
McDonald’s, NASA, Nasdaq, Netflix, Nokia, Nordstrom, Novartis, Pfizer, Samsung,
Siemens, Sony, Spotify, Turner Broadcasting, Ticketmaster, Time, U.S. State
Department, USDA Food and Nutrition Service, UK Ministry of Justice, Vodafone,
Xiaomi, Yelp, Zillow.
The reason Amazon was able to build such a roster of powerful names is
because it made connecting to the cloud simple. It didn’t matter if it was an
automaker… bank… hotel… or fast-food chain.
Massive retail chains and mom-and-pop shops alike could follow a simple
process to seamlessly integrate the service and pay only for what they needed to
use.
AWS’s success generated windfall profits for Amazon. Last year, it made about
$18.5 billion in profits for the company.
As a standalone company, AWS would have a value over $500 billion. That’s
bigger than JPMorgan Chase… Walmart… and Johnson & Johnson.
Of course, AWS also helped Bezos build his roughly $175 billion empire. And it
made early investors a fortune.
Since Amazon launched AWS in 2006, its stock is up 8,633%. That’s enough to
turn every $1,000 into $87,330.

This demonstrates the power of investing early in disruptive technology. During
the early years of the internet, Amazon made it easy for companies to connect to
the cloud. And both the company and investors profited handsomely.
In this month’s issue, we’ve uncovered a project following a similar blueprint. It’s
helping large enterprises like corporations, institutions, and government agencies
easily connect to the next wave of internet technology: the blockchain.
As you know, we believe blockchain will be the next evolution of the internet.
That’s because it makes all kinds of transactions, data, and information
decentralized and immutable… and relaying and storing it more efficient and
cheaper.
One hundred years from now, when people look back on the waves of innovation
launching us to new levels of human advancement, they’ll point to this
technology at this moment in time and say, “That was the beginning.”
And this isn’t hyperbole, either…
The World Economic Forum has projected that blockchain will store 10% of the
world’s GDP by 2027. That’s $8.6 trillion – more than quadruple today’s crypto
market cap.
So it’s no surprise 81 of the top 100 public companies are researching or using
blockchain technology, according to BlockData.
And by the end of next year, International Data Corporation (IDC) projects those
companies will spend $19 billion on blockchain solutions.
But like the early days of e-commerce technology, enterprises have no simple
solution to connect to the blockchain.
Until now…
Just as AWS became a go-to solution for organizations to do business in the
internet age… We believe this month’s recommendation will become one of the
main on-ramps enterprises use to do business on the blockchain.
Any business can use its solution to create their own public or private blockchain
cheaply and quickly. It also uses less energy than other blockchain solutions –
making it eco-friendly.

But here’s what’s making this opportunity extra appealing right now. The recent
pullback in the crypto market is giving us an excellent entry in this project. It’s
currently trading 34% lower than its recent high. So we’ll be getting in at a
discount.
If it hits on all cylinders, it could make 538%. And if it becomes the go-to
blockchain enterprise solution as we believe it could, the blue-sky potential is
1,176%.
So let’s get to it and use the market’s gift to our advantage while the opportunity
lasts…
And don’t forget to read today’s issue in full. We’re making some changes to how
we present our model portfolio and will share our top five trades to make right
now. Plus, we have an important update on one of our recommended platforms,
BlockFi.
So if you’re just getting started or have extra investable funds to put to use, be
sure to read all about it below.

One Blockchain to Unite Them All
The name of the project is Avalanche (AVAX). And it will fill the void for
businesses looking to integrate blockchain technology the same way AWS met
businesses’ e-commerce needs over the past decade…
Avalanche is a smart contract platform that enables anyone to create
customizable blockchains to fit any business’s needs.
But as you know, we look for tokens that can appreciate 10x, 100x, or even
1,000x. And we believe Avalanche has that type of blue-sky potential.
The project got its start in 2019 by Cornell University professor and blockchain
developer Emin Gün Sirer.
In 2019, Sirer founded Ava Labs – the blockchain development company behind
Avalanche.
Its goal was to build a blockchain that would become the centerpiece of Web
3.0… What we commonly refer to as blockchain technology.
Today, Ava Labs has grown to over 100 team members who are pushing forward
development and adoption of its primary project, the Avalanche network.

Here’s why we like this project…
Avalanche allows anyone to create and customize their own blockchain to their
needs.
As a refresher, a smart contract is a program that automatically executes when
predetermined conditions are met. For example, they’re crucial in decentralized
finance (DeFi) to allow for trustless and transparent services like lending,
borrowing, creating liquidity, and others.
But Avalanche separates itself from other smart contract networks like Ethereum
by enabling enterprises to create blockchains known as subnets (short for
subnetworks).
Simply put, a subnet is a separate blockchain that runs on the Avalanche
network. This allows individuals and organizations to create blockchains tailored
to their needs – just like AWS did for the companies that use it.
Subnets allow for unlimited blockchain creation without slowing down the
mainnet or sacrificing security. And since nodes (computers connected to a
network) can validate multiple subnets at once, it makes Avalanche easier to
scale.
This may sound obscure. But it’s important you should know the real-world,
practical applications for this technology will be massive for enterprises of all
kinds. Use cases include things like data security, regulatory compliance, privacy
capabilities, and more. The possibilities are endless.
Avalanche is focusing on three broad areas with its enterprise solutions:

  • Decentralized finance (DeFi): It enables users to bypass middlemen since
    it’s built using smart contracts – saving them time and money.
    On Avalanche, you’ll find DeFi applications similar to those on Ethereum
    like asset issuance, automated market makers (AMMs), borrowing
    and lending, and decentralized exchanges (DEXs).
  • Institutions and governments: We believe Avalanche will become one of
    the go-to platforms for institutions and government agencies. That’s
    because they can create the subnets mentioned above. These subnets
    give them complete control over things like data security and legal
    compliance.

Use cases include facilitating asset issuance and trading, creating central
bank digital currencies (CBDCs), debt financing, assigning and managing
digital identities, and document tracking.

  • Digital collectibles: This is another trend we’re following. It involves non-
    fungible tokens (NFTs) and the metaverse.

Avalanche enables its users to mint and trade NFTs in seconds for fees
less than a penny. These digital assets could include things like art,
certifications and licenses, collectibles, and credentials.
Using Avalanche, users can prove digital ownership of assets at speeds
and costs no other blockchain can match today.
Now, there are a lot of projects that aim to be enterprise blockchain solutions.
But we believe Avalanche has the team and advantages to be the platform of
platforms.
We’ll show you why in the next section…
Why Avalanche Is Among the Best Blockchain

“Enterprise” Solutions

As we stated above, Avalanche is faster, safer, and more eco-friendly than other
blockchains. That’s what will make it attractive to large-scale enterprises.
Take a look at the table below, which compares Avalanche to some of the
leading networks today:

Bitcoin Ethereum Polkadot Avalanche

Transactional
Throughput 7 TPS 14 TPS 1,500 TPS >4,500 TPS
Average
Confirmation Speed 60 min. 6 min. 60 sec. >2 sec.
Consensus
Mechanism

Proof-of-
Work

Proof-of-
Work

Proof-of-
Stake

Proof-of-
Stake

Energy Efficiency No ASIC-
Optimal

No GPU-
Optimal

Yes CPU-
Optimal

Yes CPU-
Optimal

Let’s explain what these terms and numbers mean:

  • Transactional Throughput: This measures the number of transactions the
    network can process. As you can see, Avalanche can process over 4,500
    transactions per second (TPS). That’s roughly 650 times more
    transactions than bitcoin and 320 times more than Ethereum.
  • Average confirmation speed: This metric simply tells you how long it takes
    for a network to process a transaction. As you can see, Avalanche is
    lightspeeds ahead of the other networks.
  • Consensus Mechanism: This is the method validators use to keep their
    networks secure. The two most popular consensus mechanisms are
    Proof-of-Work (PoW) and Proof-of-Stake (PoS).
    PoW favors network validators with high computing power, increasing their
    chance of mining a block. This is the mechanism bitcoin uses to secure its
    network.
    PoS favors network validators who have a larger number of tokens staked
    to the network. Ethereum is transitioning to this method because it’s easier
    to scale.
    Avalanche uses the PoS mechanism to keep its network fair and secure.
    To achieve high throughput, Avalanche implements the Snowball
    algorithm. It’s a method network validators use to reach consensus and
    validate blocks at lightning-fast speeds.
  • Energy Efficiency: PoS is more energy efficient than PoW because it
    doesn’t require warehouses full of computers to secure the network. That’s
    because validators on a PoS network are weighed based on the size of
    their stake, not the amount of computing power they produce.
    As you can see in the table above, Avalanche is miles ahead of some of the
    biggest blockchain networks in the world today when it comes to enterprise
    solutions.
    Now, you may be wondering: If Avalanche is all that great, why bother investing in
    anything else? Shouldn’t we sell everything else and pile into Avalanche instead?
    While we believe these features will place Avalanche among the top go-to
    platforms for enterprises, we remain bullish on other blockchain networks like
    bitcoin and Ethereum for a few reasons.

First, their characteristics and use cases are completely different. And second,
they were created to solve unique issues that Avalanche does not tackle.
Bitcoin is a world-class asset that’s on track to become the world’s leading store
of value. Its network wasn’t designed as a platform for enterprises to build on.
As I’ve argued in the past, bitcoin will see rapid adoption by institutions because
it improves overall portfolio performance while reducing portfolio volatility.
Bitcoin’s main draw is as a long-term store of value in a digital age. And that’s
why we’re starting to see institutions like hedge funds, pension funds, family
offices, credit card companies, and insurance companies adopt it.
Ethereum wasn’t built for enterprise adoption, either. Instead, Ethereum is
blockchain software akin to operating systems like Google’s Android or Apple’s
iOS. That’s why I still believe it will be the next trillion-dollar coin.
Developers create dApps for Ethereum, just like they create traditional apps for
Google’s Play Store or Apple’s App Store.
And finally, we’ve always built our portfolio with a focus on diversification. By
holding a basket of the best projects our research finds, we set ourselves up for
multiple ways to profit from this massive space – where there’s plenty of room
for multiple winners.
So Avalanche won’t replace bitcoin or Ethereum… In fact, Avalanche has already
smartly made its network compatible with Ethereum, since Ethereum is the most
widely used blockchain software in the world.
Today, it supports the Ethereum Virtual Machine (EVM).
[A virtual machine is a program which imitates a computer system. It works just
like a physical computer but exists on the network. In short, the virtual machine
executes lines of code – enabling smart contracts to function.]
In the future, Avalanche plans to expand its compatibility to additional virtual
machines.
It’s a brilliant move by the Avalanche team since this enables developers to build
in the language of their choice. This attracts more developers to its network
since they won’t have to learn a new programming language.

In short, Avalanche is one of the fastest networks with industry-leading security
that will enable enterprises to create customizable blockchains.
But don’t just take our word for it… In the section below, you’ll see Avalanche’s
user base is exploding.
The Other Enterprise Blockchain Solutions in Our

Portfolio

Now, there are other enterprise blockchain solutions out there. But Avalanche is
also well ahead of the pack when it comes to user adoption, as you’ll see in a
moment.
The blockchain enterprise market will be so huge, we believe there will be room
for more than one solution for the thousands of enterprises entering the space.
You can think of it like owning Amazon and Microsoft in their early days. Both are
the leaders in the cloud computing space (Amazon with AWS and Microsoft with
Azure).
You couldn’t go wrong holding either one. And you are better off holding both.
If either one becomes a dominant player, you make life-changing gains. And if
both become leading competitors five years from now, even better.
Adoption and Partnerships on the Rise
Since September, adoption on the Avalanche network has skyrocketed. It’s
seeing breakneck growth rates in terms of usage. And it’s attracting some of the
most promising partnerships in the space (more on that in a moment).
First, let’s get to its adoption rate…
The chart below shows the number of users on the Avalanche network. Over the
past five months, it’s grown 1,000%.