Avalanche Coin

The cryptocurrency sector is witnessing massive growth, despite the lack of standardization and govt regulation. With time, so many people are investing in the crypto sector and they are opting for it as a new-age alternative to traditional investment options like the stock market and gold. To trade in the crypto market, you need to use a suitable cryptocurrency exchange or platform. There are several such exchanges and more are coming up with time. Avalanche is among the new and rising players. 

The basics of Avalanche Coin

Avalanche is a platform supporting smart contracts for using Blockchain technologies without having to rely on any third-party service. Avalanche is a Blockchain ecosystem meant to run as a secure decentralized network and it is referred to by developers as a “platform of platforms”. It is used mostly for cryptocurrency transfers and executing other financial transactions. It was launched by Ava Labs which is run by Emin Gün Sirer. The Ava Labs team is made of experts in law, economics, finance, computer science. The company started its journey in 2018. It was in late 2020 that the Avalanche network was launched.

The first ICO of Avalanche took place in July 2020. Its founders raised$ 60 million and that included investments from a few large-scale investors. 

More on Avalanche 

Avalanche is a decentralized platform that supports fast end-to-end transactions execution. The smart contracts on its network can execute within a second, say the developers. With Avalanche, it is possible to create highly decentralized applications and interoperable blockchains. It has the native token AVAX. This is what developers use as the primary currency for making network transactions. Avalanche network does not support a lot of tokens but the developers are trying to enhance the coin support. 

The working mechanism of Avalanche

The Avalanche network works on the DPoS consensus algorithm and contains several blockchains. These blockchains are referred to as subnets. Each subnet can be deemed as a separate mini-network. These mini networks join to form the main Avalanche network. Owing to the subnet’s architecture, over 45,000 transactions per second can take place on the core network. This is why the transaction response times are short. 

There are 3 major blockchains in the Avalanche network. These are – Contract Chain, Platform Chain, and Exchange Chain. The Primary Network is what validates and secures these 3 blockchains.

• The X-Chain makes use of AVAX tokens for asset creation and exchange. It is decentralized and lets users mint smart digital assets which can be utility tokens, NFT.
• The P-Chain makes and runs the subnets and adds validators. It is used for coordinating the network Validators.
• The C-Chain is there for developing smart contracts. It helps in converting the Ethereum Dapp developers.

Avalanche is said to be a deflationary Blockchain network. It gathers fees from several actions and sends the coins for burning. Through the burning of the tokens total amount of AVAX is reduced. 

Avalanche is a DPoS ecosystem. So, the Validators secure the network as well as clear the transactions. The DPoS networks are speedier than PoW and PoS options. 

Why Avalanche is better than existing Crypto platforms/exchanges?

• Avalanche network is faster than most segment rivals. The average normal transaction time for Bitcoin is 1 hour. So, users have to wait for 1 hour to get transaction confirmations. In the case of Ethereum, it is 6 minutes. For Avalanche, it is just a few seconds. Its transactional throughput is above 6500 TPS.

• Even in security, the Avalanche network is up to 60% resilient. Besides, Bitcoin and other crypto platforms are known for heavy energy consumption. Avalanche is said to be far greener in nature. 

• Ethereum has been drawing flak for its ever-growing transaction fees, known as gas. The fees incurred on the avalanche network are lower than that of most other Blockchain networks Ethereum. 

• Avalanche brings some notable benefits for both regular and business users. It enables businesses to set up new application-specific blockchains as well as Dapps. The network can execute several custom virtual machines.

• Avalanche lets you build Blockchain systems. These are called Subnets within the main Avalanche ecosystem. The subnets remain fully programmable. 

Overall, Avalanche addresses multiple issues in older generation Blockchain networks. It is more programmable and has more features. It introduces scalability, security, and high-performance to the smart contract systems. 

The uses of AVAX token

Each cryptocurrency has a native token or coin usually and Avalanche has its own coin. AVAX is its native token and it serves as the Avalanche blockchain’s base unit of account. AVAX tokens can be used for earning passive income, paying fees and these can be used as incentives too. As of now, you cannot buy AVAX in lieu of fiat currency. You can buy another cryptocurrency, and by exchanging that token you can buy AVAX. Crypto brokerages supporting AVAX include CoinEx, Binance, WazirX. The token is generated through a secondary subnet Blockchain on the Avalanche network. Overall, 720 million AVAX tokens were announced for issuance. 

What about AVAX Staking?

Users can get rewards in AVAX through staking. The nice thing is Avalanche hardware requirements are lower compared to rivals for staking. You should have a minimum of 2000 AVAX to become a network Validator. 

Summing it up

Like many of its proponents think, Avalanche may become a game-changer in the fast-evolving cryptocurrency sector. The platform is decentralized and offers excellent scalability and flexibility to developers. It is ideal for making Defi applications. The network within network architecture is its USP. As for security, you can count on its unique consensus system. Lower transaction charges and speedy transaction timing also work in the network’s favor. While Avalanche does face competition from other new generation crypto platforms like Cardano, Solana, and Polkadot, its advantages far outshine the drawbacks.