Avalanche is an open-source platform for running decentralised applications and deploying public and private infrastructure in one scalable ecosystem.
As blockchain technology evolves, new solutions emerge for scalability, interoperability and usability. The Avalanche network takes a unique approach by using three blockchains in its core platform. Thanks to its native AVAX token features and multiple consensus mechanisms, Avalanche describes itself as "the fastest smart contract platform in the blockchain industry, measured in terms of completion time".
Avalanche aims to increase scalability without sacrificing speed and decentralisation. The platform is based on three blockchains: the exchange chain (X-Chain), the contract chain (C-Chain) and the platform chain (P-Chain). The X-Chain is used to create assets and exchange them. The C-Chain is designed to create smart contracts. The P-Chain coordinates validators and subnets. Let's find out more about this rapidly growing cryptocurrency.
Avalanche
What is Avalanche?
Avalanche is an open-source platform for running decentralised applications and deploying public and private infrastructure in a single scalable ecosystem. Avalanche is not just a cryptocurrency or a blockchain project, but a revolutionary technology platform designed to solve fundamental problems such as scalability, speed and reliability.
Avalanche offers lower fees and faster transaction speeds than Ethereum. Avalanche's blockchain can, theoretically, process 4,500 transactions per second (depending on the subnet), which is significantly higher than Ethereum's sub-20. Avalanche's native token is AVAX, which is used to secure the network and pay transaction fees.
The History of Avalanche?
The basics of Avalanche were first published in May 2018 on the Interplanetary File System (IPFS) by an anonymous group. The protocol was developed by Cornell University researchers led by computer science expert Professor Emin Gün Sirer along with PhD students Maofan Yin and Kevin Sekniqi. Their research turned into a startup to develop the protocol into a blockchain network. The company also launched its token, AVAX, in September 2020.
What Problems Does Avalanche Solve?
There are three main problems that the Avalanche network aims to solve: scalability, transaction fees and interoperability.
Decentralisation and Scalability
Blockchains have always struggled with the balance between decentralisation and scalability. A busy network may not be able to handle the load. For example, during periods of high traffic, the Bitcoin (BTC) network took hours or even days to execute transactions.
Allowing fewer individuals to confirm network activity is one way to increase centralisation and speed. However, decentralisation is a crucial element for blockchain security. In the following, we will discuss the unique approach taken by the Avalanche network. New blockchains are attempting to address this problem with innovative technological solutions.
High Fees
High gas fees are another common problem for large blockchains such as Ethereum; these fees increase in direct proportion to network activity and traffic. Although less established ecosystems try to compete, this ends up discouraging new users from entering the blockchain world. For example, the widespread use of Ethereum and the scarcity of alternatives have led to persistently high costs and traffic. Complex smart contract transactions can cost over $100, while simple transfers can cost over $10.
Compatibility
When using blockchains, different projects and companies have distinct requirements. In the past, projects had to use a private blockchain, Ethereum or other blockchains that were not adapted to their needs. Finding a balance between interoperability between different blockchains and customisation can be difficult. Customisable subnets and blockchains are the solution proposed by Avalanche, combining compatibility, speed and security.
How Does Avalanche Work?
Avalanche uses a unique combination of methods consisting of three compatible blockchains: X-chain, C-chain and P-chain.
AVAX tokens and other digital assets can be created and exchanged using the Exchange Chain (X-chain). The blockchain uses the Avalanche consensus mechanism and transaction fees are paid in AVAX.
Developers can create smart contracts for DApps using the Contract Chain (C-Chain). This makes DApps compatible with the Ethereum Virtual Machine (EVM) by partially implementing it. The chain uses Snowman, a modified Avalanche consensus protocol.
The network validators are coordinated by the Platform Chain (P-Chain), which also keeps track of active subnets and allows new subnets to be formed. It too uses Snowman.
Increased speed and better scalability are made possible by the distribution of different functions among distinct blockchains. The consensus techniques have been modified by the developers of Avalanche to meet the requirements of each blockchain.
Why Avalanche has Grown So Much
Growth of Avax
Most analysts believe that the cooperation of the platform's designers with Deloitte, one of the world's largest consulting organisations, is the cause of the altcoin's unprecedented rise. According to the agreement, Avalanche and Deloitte will work together to create a solution that will improve the operations of the US Federal Emergency Management Agency (FEMA).
Before the collaboration with Deloitte, a number of other projects totalling $600 million were announced, which may have accelerated the rate of expansion.
AVAX fell to 11th place in the CoinMarketCap list of the most expensive cryptocurrencies, with a value of almost $125. The altcoin's market value is over $28.5 billion.
Avalanche Price Prediction
Growth Expectations for AVAX
Since January 2021, AVAX's rate has increased by 3000%. According to CoinPriceForecast, this would not be the limit for the coin; by the end of 2021, it could rise to USD 225 and, by May 2022, to USD 468. According to the site's prediction, by the end of next year, the price of AVAX will grow to $586, and by the end of 2023, it will reach $905.
Wallet Investor's prediction is a bit more modest. They believe that, within a year, the price of AVAX could rise to $251 and, within five years, to $724.
Price Prediction believes that the AVAX coin will only reach the $250 level in 2023, and that the top rate next year will be around $209. The altcoin will not cross the $1,000 threshold until at least 2027.
Evolution of the Avalanche Network (AVAX)
Avalanche was created by Emin Gün Sirer and his team at Ava Labs, a group of eminent academics and computer scientists.
Research and Development
At the heart of Avalanche is a customised consensus protocol. Prior to the launch, the Avalanche team published a whitepaper describing ACP, which quickly attracted attention for its potential to significantly improve transaction throughput and confirmation times for existing blockchain networks, while maintaining robust security.
This research phase was crucial, as it laid the theoretical foundation for the network's approach to consensus.
Public Launch and Network Activation
In September 2020, Avalanche officially launched its platform. As it moved from theoretical research to a functional and active blockchain platform capable of serving a wide range of applications, network activation was a significant turning point.
Platform Development and Ecosystem Growth
As more and more developers use Avalanche to create decentralised-applications (DApp), the platform has experienced tremendous development and popularity since its inception.
The network has become a centre of innovation, especially in the field of decentralised finance (DeFi), where its superior performance makes it a desirable alternative to less competitive rivals.
One of the major advances has been the launch of the Avalanche-Ethereum Bridge (AEB), which improves compatibility with Ethereum and enables seamless asset transfers between the two ecosystems.
How to Buy Avalanche (AVAX)
Avalanche (AVAX) is available on the following exchanges:
Bybit- A very popular exchange for residents in many countries, including the United States (excluding New York State) and the European Union. Bybit offers a wide range of cryptocurrencies, including AVAX, and supports both spot trading and futures contracts.
KuCoin- Founded in 2017, KuCoin is one of the most widely used exchanges globally. It is available in over 200 countries, including Australia, Canada, the United States (except New York), and many European countries. KuCoin offers a wide range of cryptocurrencies, including the most common and many altcoins.
Phemex- Phemex is a trading platform that supports residents of numerous countries, including the United States, Europe, and Asia. It is known for its intuitive interface and for offering spot and derivatives trading, including cryptocurrencies such as AVAX. However, it may require identity verification for full access.
How Is Avalanche Different From Other Scalable Blockchains?
Avalanche on Coinmarketcap
These challenges and solutions are not unique to Avalanche. It competes with other scalable and blockchain-compatible platforms such as Ethereum, Polkadot, Polygon and Solana. So, what makes Avalanche different?
Consensus Mechanism
One of the main differences of Avalanche is its consensus mechanism. Of course, Avalanche is not the only blockchain with a new consensus mechanism. For example, Solana uses a Proof of History protocol with a processing speed of up to 50,000 TPS (transactions per second), which is significantly higher than Avalanche's 6,500 TPS. However, the TPS is only a metric to measure speed and does not take into account the finality of the block.
Transaction Speed and Finality
Another important difference is that Avalanche's finality time is less than 1 second. What does this mean? The TPS is only a metric for measuring speed. Furthermore, it is necessary to consider the time it takes for a transaction to be fully completed, after which it can no longer be changed or cancelled. The TPS can be as high as 100,000, but due to the delay in completion, the network will still operate slowly. Avalanche, on the other hand, ranks as the fastest platform in terms of completion time.
Decentralisation
One of the main advantages of Avalanche is decentralisation. Although the network is still young, it already has a large number of validators (more than 1,300 as of April 2022) due to the minimum requirements. However, with the rising price of AVAX, becoming a validator is becoming more and more expensive.
Blockchain Compatible
Avalanche has no limits on the number of compatible blockchains. In this respect, it competes directly with Polkadot, another project with customisable compatible blockchains. However, Polkadot uses limited space for selling during Parachain Slots auctions, while Avalanche relies on simple subscription fees.
Conclusion
As Avalanche continues to evolve, it is set to innovate and improve further. The network roadmap further increases scalability across subnets, improves interoperability with other blockchain ecosystems and continuously improves the user and developer experience. Avalanche's growth from a research concept to one of the fastest growing blockchain platforms is a testament to how quickly the industry can recognise and implement high potential projects.
It was launched on 13 October 2011 with the goal of becoming the 'silver to gold of Bitcoin' and is still one of the largest cryptocurrencies by market capitalisation.
As blockchain technology evolves, new solutions emerge for scalability, interoperability and usability. The Avalanche network takes a unique approach by using three blockchains in its core platform. Thanks to its native AVAX token features and multiple consensus mechanisms, Avalanche describes itself as "the fastest smart contract platform in the blockchain industry, measured in terms of completion time".
Avalanche aims to increase scalability without sacrificing speed and decentralisation. The platform is based on three blockchains: the exchange chain (X-Chain), the contract chain (C-Chain) and the platform chain (P-Chain). The X-Chain is used to create assets and exchange them. The C-Chain is designed to create smart contracts. The P-Chain coordinates validators and subnets. Let's find out more about this rapidly growing cryptocurrency.
What is Avalanche?
Avalanche is an open-source platform for running decentralised applications and deploying public and private infrastructure in a single scalable ecosystem. Avalanche is not just a cryptocurrency or a blockchain project, but a revolutionary technology platform designed to solve fundamental problems such as scalability, speed and reliability.
Avalanche offers lower fees and faster transaction speeds than Ethereum. Avalanche's blockchain can, theoretically, process 4,500 transactions per second (depending on the subnet), which is significantly higher than Ethereum's sub-20. Avalanche's native token is AVAX, which is used to secure the network and pay transaction fees.
The History of Avalanche?
The basics of Avalanche were first published in May 2018 on the Interplanetary File System (IPFS) by an anonymous group. The protocol was developed by Cornell University researchers led by computer science expert Professor Emin Gün Sirer along with PhD students Maofan Yin and Kevin Sekniqi. Their research turned into a startup to develop the protocol into a blockchain network. The company also launched its token, AVAX, in September 2020.
What Problems Does Avalanche Solve?
There are three main problems that the Avalanche network aims to solve: scalability, transaction fees and interoperability.
Decentralisation and Scalability
Blockchains have always struggled with the balance between decentralisation and scalability. A busy network may not be able to handle the load. For example, during periods of high traffic, the Bitcoin (BTC) network took hours or even days to execute transactions.
Allowing fewer individuals to confirm network activity is one way to increase centralisation and speed. However, decentralisation is a crucial element for blockchain security. In the following, we will discuss the unique approach taken by the Avalanche network. New blockchains are attempting to address this problem with innovative technological solutions.
High Fees
High gas fees are another common problem for large blockchains such as Ethereum; these fees increase in direct proportion to network activity and traffic. Although less established ecosystems try to compete, this ends up discouraging new users from entering the blockchain world. For example, the widespread use of Ethereum and the scarcity of alternatives have led to persistently high costs and traffic. Complex smart contract transactions can cost over $100, while simple transfers can cost over $10.
Compatibility
When using blockchains, different projects and companies have distinct requirements. In the past, projects had to use a private blockchain, Ethereum or other blockchains that were not adapted to their needs. Finding a balance between interoperability between different blockchains and customisation can be difficult. Customisable subnets and blockchains are the solution proposed by Avalanche, combining compatibility, speed and security.
How Does Avalanche Work?
Avalanche uses a unique combination of methods consisting of three compatible blockchains: X-chain, C-chain and P-chain.
Increased speed and better scalability are made possible by the distribution of different functions among distinct blockchains. The consensus techniques have been modified by the developers of Avalanche to meet the requirements of each blockchain.
Why Avalanche has Grown So Much
Most analysts believe that the cooperation of the platform's designers with Deloitte, one of the world's largest consulting organisations, is the cause of the altcoin's unprecedented rise. According to the agreement, Avalanche and Deloitte will work together to create a solution that will improve the operations of the US Federal Emergency Management Agency (FEMA).
Before the collaboration with Deloitte, a number of other projects totalling $600 million were announced, which may have accelerated the rate of expansion.
AVAX fell to 11th place in the CoinMarketCap list of the most expensive cryptocurrencies, with a value of almost $125. The altcoin's market value is over $28.5 billion.
Avalanche Price Prediction
Since January 2021, AVAX's rate has increased by 3000%. According to CoinPriceForecast, this would not be the limit for the coin; by the end of 2021, it could rise to USD 225 and, by May 2022, to USD 468. According to the site's prediction, by the end of next year, the price of AVAX will grow to $586, and by the end of 2023, it will reach $905.
Wallet Investor's prediction is a bit more modest. They believe that, within a year, the price of AVAX could rise to $251 and, within five years, to $724.
Price Prediction believes that the AVAX coin will only reach the $250 level in 2023, and that the top rate next year will be around $209. The altcoin will not cross the $1,000 threshold until at least 2027.
Evolution of the Avalanche Network (AVAX)
Avalanche was created by Emin Gün Sirer and his team at Ava Labs, a group of eminent academics and computer scientists.
Research and Development
At the heart of Avalanche is a customised consensus protocol. Prior to the launch, the Avalanche team published a whitepaper describing ACP, which quickly attracted attention for its potential to significantly improve transaction throughput and confirmation times for existing blockchain networks, while maintaining robust security.
This research phase was crucial, as it laid the theoretical foundation for the network's approach to consensus.
Public Launch and Network Activation
In September 2020, Avalanche officially launched its platform. As it moved from theoretical research to a functional and active blockchain platform capable of serving a wide range of applications, network activation was a significant turning point.
Platform Development and Ecosystem Growth
As more and more developers use Avalanche to create decentralised-applications (DApp), the platform has experienced tremendous development and popularity since its inception.
The network has become a centre of innovation, especially in the field of decentralised finance (DeFi), where its superior performance makes it a desirable alternative to less competitive rivals.
One of the major advances has been the launch of the Avalanche-Ethereum Bridge (AEB), which improves compatibility with Ethereum and enables seamless asset transfers between the two ecosystems.
How to Buy Avalanche (AVAX)
Avalanche (AVAX) is available on the following exchanges:
How Is Avalanche Different From Other Scalable Blockchains?
These challenges and solutions are not unique to Avalanche. It competes with other scalable and blockchain-compatible platforms such as Ethereum, Polkadot, Polygon and Solana. So, what makes Avalanche different?
Consensus Mechanism
One of the main differences of Avalanche is its consensus mechanism. Of course, Avalanche is not the only blockchain with a new consensus mechanism. For example, Solana uses a Proof of History protocol with a processing speed of up to 50,000 TPS (transactions per second), which is significantly higher than Avalanche's 6,500 TPS. However, the TPS is only a metric to measure speed and does not take into account the finality of the block.
Transaction Speed and Finality
Another important difference is that Avalanche's finality time is less than 1 second. What does this mean? The TPS is only a metric for measuring speed. Furthermore, it is necessary to consider the time it takes for a transaction to be fully completed, after which it can no longer be changed or cancelled. The TPS can be as high as 100,000, but due to the delay in completion, the network will still operate slowly. Avalanche, on the other hand, ranks as the fastest platform in terms of completion time.
Decentralisation
One of the main advantages of Avalanche is decentralisation. Although the network is still young, it already has a large number of validators (more than 1,300 as of April 2022) due to the minimum requirements. However, with the rising price of AVAX, becoming a validator is becoming more and more expensive.
Blockchain Compatible
Avalanche has no limits on the number of compatible blockchains. In this respect, it competes directly with Polkadot, another project with customisable compatible blockchains. However, Polkadot uses limited space for selling during Parachain Slots auctions, while Avalanche relies on simple subscription fees.
Conclusion
As Avalanche continues to evolve, it is set to innovate and improve further. The network roadmap further increases scalability across subnets, improves interoperability with other blockchain ecosystems and continuously improves the user and developer experience. Avalanche's growth from a research concept to one of the fastest growing blockchain platforms is a testament to how quickly the industry can recognise and implement high potential projects.
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