It can be said to be the third-generation blockchain tech coming after Bitcoin and Ethereum. It performs well, and the scale is high. This network is an open-source blockchain, and it bridges developer’s and user’s needs.
It is said that this network is the first blockchain that can handle both intelligent contracts and boost transactions within a second through Snow family protocols.
New blockchains can be created with it, and they will run under the developer’s rule. New assets can also be created and made to follow specific parameters and trading restrictions. dApps and scalable smart contracts will also become a reality.
In this article, we will provide a clear explanation about avalanche blockchain and how it works.
What is Avalanche
The Avalanche is a new blockchain network launched in September 2020; it focuses on speed and low transaction costs.
And its primary goal is to outshine ETH2.0 in terms of latency and throughput.
It’s a source that can give everybody the chance to build their blockchain.
Origin of Avalanche
Ava Labs created the network in September 2020. The Ava Labs is a company led by Cornell researcher Emin Gün Sirer.
Uses of Avalanche
You can use the token to collect fees during transactions for incentives. And as a user, you can earn income by staking the coins on the network.
It is the best verifiable platform for government, enterprises, and institutions.
You might be asking, what makes Avalanche special?
It’s a safe network, and just like BTC, it has fixed capped supply tokens. And there will be no suffering from continuous dilution through inflation.
Aside from these, the blockchain has some other unique features, which include:
- • Modular
Avalanche gives everybody the chance to use the building blocks of its platform to build a blockchain that is either private or public and has a specific application.
- • Customization
With it, you can have control entirely over the behavior of smart contracts. You can control who views, Interacts, and controls the dApp. And which programming language or the visual machine does it execute with. Your assets will have their custom rules.
- • Secure and Scalable
The blockchain uses a PoS(proof of stake) consensus mechanism for protection. This PoS will make sure your network is stable, reliable, resistant to attacks, and robust.
- • High performance
The blockchain works with the snow family protocols that it creates. These protocols will reduce transaction traffic. You can finalize your transaction within a second.
How Does Avalanche Work
The network works by using PoS protocols to attain high throughput. It comprises several blockchains. It is estimated to reach over 4500 transactions every second.
The network claims that its consensus protocols consist of some benefits like; Robust scale, speed, and energy efficiency, to make the revolutionary consensus engine.
Emin Gün Sirer, a lead researcher of creating Avalanche, said, “Avalanche is a new family, and it only happens thrice in the 45 years history of the distributed system before a family emerges. He also said it combines the best of Satoshi with the classical in scales like no other that allow anyone to integrate themselves into the consensus layer.”
The network comprises multiple subnets that merge to form one interoperable network. Thus you can call it a platform of platforms.
Notable investment firms such as Polychain Capital and Andreesen Horowitz made the network raises to $18 million; from there, within 4.5 hours, it raised another $42 million after the launch of its token AVAX.
Based on their model, every coin is a different instance of a virtual machine. The chains are allowed to have use case-specific functioning, which is achieved with the help of many custom virtual machines, including WASM and EVM.
These machines are individually set based on a custom blockchain network known as SUBNETS. This subnet ensures safety and honesty through its own set of incentive mechanisms. (These subnets are a dynamic set of validators that work as one to achieve consensus of the state of a set of blockchains)
How Avalanche Solves Ethereum Issues
Ethereum is an open-source blockchain and is decentralized. But because it serves multiple purposes, there are a lot of flows, hacks, and breakdowns. And the transaction fee is unstable.
Avalanche made it so easy to port your Ethereum Dapp to them. One of the issues that another blockchain faces are high performance and scalability. Avalanche, as a new blockchain, needs to attract developers and make a strong developer community. Thus it has better performance and scalability. Their intelligent contract chain also executes Ethereum virtual machine contracts, meaning if you are already active on the Ethereum blockchain, you can reuse a portion of your codebase in the avalanche.
The Avalanche Foundation focuses its blockchain as an alternative to Ethereum. And also supports smart contracts, which is a crucial component to allow the Defi project. You can run decentralized apps with efficiency.
Also, applications that are questioning Ethereum can change their API endpoint and adapt to support avalanche, which is a new network.
Similarly, the networks are working hard on a bridge to move Ethereum assets to them. Recently, a crypto asset worth $1.3 billion has been transferred using the bridge.
Financially, in terms of incentives for developer’s interest, private sales and grants could help bootstrap them.
The Avalanche Foundation states that about 225 projects, such as the popular crypto projects Tether, Circle, SushiSwap, and Chainlink, have currently supported their platform. And also, NFT-based games in partnership with MLB and Bundesliga are using Avalanche.
The network is ahead of many cryptocurrencies in the market, such as Algorand and Polygon. It’s Eco-friendly, fast, and low cost. And according to CoinMarketCap, avalanche and its token AVAX are currently the 11th cryptocurrency by total market capitalization.
Also, undoubtedly it has excellent potential. You can call it the most attractive among cryptocurrencies based on its native token that ensures security, good speed, and high transaction.
What Avalanche Token and where to Buy it
AVAX is the native token of the Avalanche platform. Highly supported across leading exchanges and launched in July 2020. You can use it to pay fees. It’s highly secured, and it’s a scarce asset.
You can get AVAX from a lot of exchange platforms.
Below are the best three exchange platforms to buy AVAX.
Binance is the best, largest, well-known, and most active exchange to get an AVAX token.
And you can enjoy tremendous benefits when you purchase AVAX from Binance, including low exchange fees, increased liquidity allowing you to buy and sell quickly.
But USA citizens are not allowed to purchase AVAX, so the exchange is best in Australia, Singapore, Canada, and other international users.
Gate.io, a known trading platform for both beginners and regular people. You can safely purchase AVAX from here.
Other platforms to purchase AVAX include
If you are confused about which blockchain to go for, we assure you of Avalanche. It’s regarded as the safest, fastest, and capable of processing higher throughput than Visa. With their Snow White Family protocols, you can build your virtual machine and dictate how it should operate. The transaction here is speedy.
Within a second, you can perform multiple transactions. As the most attractive among cryptocurrencies, it has excellent potential. It is currently ranked 15th based on the value statistics.
Written by: Narender Charan