What is Avalanche Network (AVAX)?
Launched in 2020 by Ava Labs, Avalaunch is a blockchain platform that is smart contract-enabled. Avalanche aims to provide a scalable blockchain solution while maintaining decentralization and security, focusing on low fees, fast transaction speeds, and eco-friendliness.
Avalanche rapidly became popular in the cryptocurrency space, with Avalanche TVL currently worth $8.41 billion and still growing in Avalanche decentralized applications (DApps). Avalanche is powered by its native token Avalanche (AVX) and multiple consensus mechanisms.
With Avalanche, users can create an unlimited number of customized and interoperable blockchains. In order to operate a blockchain on Avalanche Coins, AVAX, one has to pay a subscription fee.
What is Avalanche Crypto used for?
Native Token AVAX is a utility token. The AVAX avalanche ecosystem serves as a medium of exchange. In other words, tokens are used as currency within the network, usually for fee collection in transactions, incentives, and many other use cases.
It is also used to stake AVAX, which serves to secure the network. Stackers are then rewarded with more AVAX. Some users bet on AVAX to earn passive income on the network.
history of avalanches
When the bitcoin blockchain was launched in 2009, it paved the way for the design and invention of the blockchains that followed it, including Ethereum. With the widespread use of non-fungible tokens (NFTs) and decentralized finance (DeFi) protocols today, however, the technical limitations of the original blockchain design have become more apparent.
Bitcoin’s proof-of-work (PoW) consensus, for example, prevents decentralization to an extent due to its resource-intensive verification process. Transactions also slow down. Most Ethereum apps today use layer-2 scaling solutions to address these issues. By using layer 2, transactions are moved away from the main chain. They are then bundled into neat “bundles”, which are sent back to the Ethereum chain, removing the pressure from the Ethereum.
Although effective, this solution adds layers of complexity, leaving the network open to certain security threats. So, how can a blockchain keep everything within a layer-1 protocol that is decentralized and scalable but also secure?
Enter Ava Labs, the founder of Avalanche, who came up with a brilliant three-blockchain solution to solve the top problems that plague blockchain. In September 2020, Ava Labs US launched Avalanche Blockchain after raising $6 million during its funding round. His subsequent token sale – private and public – amounted to $48 million.
Who’s Behind the Avalanche (AVAX)?
The three men behind the avalanche are Kevin Seniqi, Maofan “Ted” Yin and Emin Gun Sirer. A pseudonymous group called Team Rocket first released fundamental information about the protocol on the Interplanetary File System in May 2018.
A group of Cornell University researchers then developed the technology, led by Emin Gunn Sirer, a Cornell professor of computer science and software engineer. He was assisted by two of his doctoral students: Maofan “Ted” Yin and Kevin Seknik.
The AVA codebase for the Avalanche consensus protocol became open source in March 2020, making it available to the public. Avalanche’s initial coin offering (ICO) ended in July of 2020, followed by Avalanche’s launch in September of the same year.
What problems does Avalanche (AVAX) solve?
As mentioned earlier, Avalanche was created to solve many of the problems faced by most blockchain networks. Platforms like Avalanche work to counter centralization within the crypto space, by providing an alternative to networks like Ethereum.
Two of the top issues Avalanche addresses are:
Crowd
Avalanche was purposely built with scalability in mind. On par with top-tier payment processors like PayPal and Visa, Avalanche has sub-second transaction times.
Avalanche is also tremendously powerful and efficient, with the ability to process up to 6,500 transactions per second with sub-second finals. This is a huge improvement over Ethereum’s limitations in terms of the number of transactions that can be processed per second.
low fees
Considered by many as a competitor to Ethereum, Avalanche also surpasses Ethereum in terms of gas charges. Fees on Avalanche are more affordable than Ethereum by a wide margin.
Fees on the network are used for a variety of purposes such as for creating and creating assets, placing bets, transaction fees and blockchain creation, after which these fees are burned off, permanently increasing the number of AVAXs within the platform. decreases.
Used fees are burned because “$AVAX is a hard, scarce asset used to pay fees and secure the network.” Avalanche share on Twitter. Burnt AVAX can be checked at burnavax.com.
How does Avalanche (AVAX) work?
In an effort to continually develop and improve blockchain technology, the creators of Avalanche sought to develop solutions to some of the common problems of older blockchains such as bitcoin. Some of this is a lack of interoperability and problems with scalability and usability.
Avalanche tackles the problems described above through a unique approach: using three different blockchains. Avalanche claims to be the “fastest smart contract platform in the blockchain industry, as measured by the finality over time.”
Let’s take a closer look at the three blockchains that make up the Avalanche mainnet:
- X-Chain: This blockchain is used for the management of assets. It uses the Avalanche consensus protocol.
- C-Chain: This blockchain is used to create smart contracts. It uses the Snowman consensus protocol.
- P-Chain: This blockchain is used for coordinating validators. It also uses the Snowman consensus protocol.
The Avalanche Consensus Protocol randomly checks the transaction confirmation of validators by having all nodes work in parallel with each other. The idea is that doing repeated random checks increases the probability that the transaction is true/valid. The Snowman consensus protocol works very similarly but uses blocks in a linear process.
Avalanche Benefits (AVAX)
The main advantages of an avalanche can be found primarily in the way it is constructed. The founders of Avalanche found a way to address common problems of blockchain through the unique structure of the network.
interoperability
Only a few blockchains accommodate the trading of different forms of cryptocurrency and data with other platforms. Avalanche facilitates interoperability by allowing different blockchains to share data and effectively “interoperate” with each other.
Scalability
For example, mining bitcoin (BTC) requires a tremendous amount of energy and computing power. Ethereum can only process 15 transactions per second. While powerful and highly valuable, these blockchains are difficult to scale due to these limitations. Avalanche, on the other hand, was built to be scalable and boasts of sub-second transaction times and incredible processing capacity.
usable
One of the concerns in the adoption of any technology is the usability or the extent to which the software or technology is easy to use and is applicable in a variety of applications and use cases. Avalanche has proved useful in a variety of cases and is gaining momentum in the crypto community at a rate that could rival Ethereum.
Where and how to buy AVAX?
maintain
Uphold is one of the top crypto exchanges in the United States that serves the trading needs in various cryptocurrencies including AVAX. The platform also offers easy-to-use features that allow users interested in purchasing AVAX to do so with ease.
Uphold has both desktop and mobile apps and a customizable trading view for users to display the assets they trade the most. New traders, in particular, prefer to use Uphold due to its simple, modern interface that facilitates easy navigation on both desktop and mobile.
Binance
Known as one of the most trusted cryptocurrency exchanges globally, Binance allows users to buy AVAX with ease. Users who want to buy AVAX on Binance can enjoy increased liquidity along with lower exchange fees making it easier to buy and sell quickly. Binance users can buy AVAX in Australia, Canada, the United Kingdom, Singapore, and other international locations. Currently, US residents are prohibited from buying AVAX on the platform.
bitpanda
Bitpanda is well-known in Europe as a reputable exchange for buying and selling bitcoin. Currently, the platform also offers trading of various cryptocurrencies and buying assets such as precious metals. AVAX is the easiest to buy on Bitpanda, but it is currently only open to residents of the EU.
get.io
Gate.io is another reputed trading platform that offers a user-friendly interface that can be easily used by even the newbies to trading. It also offers advanced charts for more technical traders.
The platform is a cryptocurrency exchange that holds a wide range of altcoins including AVAX. Gate.io is particularly known for its stoic stance against market manipulation. It is open to US residents, except those living in New York and Washington state.