Today we will talk about: Avalanche (AVAX)!
In the last token review, I talked about Terra. If you missed my last crypto analysis, you can recover it below.
OVERVIEW
One of the most interesting projects, to have recently peeped into the complex world of cryptography and blockchain, is Avalanche. It is a complex ecosystem, closely linked to an internal token, i.e. a cryptographic tool in all respects, which takes the name of AVAX.
Contrary to many other projects, born especially in recent times and based on a few services, Avalanche aims to make available several functionalities, focused on blockchain technologies and last generation structures. All of this closely related to the decentralized finance sector (DeFi).
Avalanche is a layer one blockchain, which can be used as a platform for decentralized applications and custom blockchain networks. It is one of Ethereum's competitors and aims to replace Ethereum as the most popular smart contract blockchain. Its goal is to achieve this goal with a higher transaction output of up to 6,500 transactions per second without compromising scalability. Avalanche's unique architecture makes this possible.
The Avalanche network consists of three independent blockchains: X chain, C chain and P chain. Each chain has a unique purpose, which is completely different from the methods used by Bitcoin and Ethereum, which is to have all nodes verify all transactions. Avalanche blockchain even uses different consensus mechanisms according to its use cases. After launching the mainnet in 2020, Avalanche has been committed to developing its own DApp and DeFi ecosystem. Different Ethereum-based projects, such as SushiSwap and TrueUSD, have been integrated with Avalanche.
Team
Behind a great project there is always a great development team. Although the interest behind AVAX exploded mainly during the 2020, the initial project, on which the entire Avalanche ecosystem rests today, is much older. The foundation of the project is now led by three industry professionals, with numerous experiences and skills, also learned in other projects outside of Avalanche. They are Kevin Sekniqi (COO), Emin Gun Sirer (CEO) and John Wu (PRESIDENT).
They have all tried to study new systems to be able to improve the criticalities shown by Bitcoin nowadays, one of them being the low level of scalability. Starting from a small team, over the years it has reached important numbers, arriving today to count many professionals working for the parent company, Ava Labs.
What is Avalanche?
Avalanche represents a revolutionary project based on its own blockchain technology. It's a different matter to talk about AVAX, which represents only the token associated to the ecosystem, which will be discussed in more detail in due time. Going back to Avalanche, the underlying project aims to bring new visions to the world of decentralized finance, improving some aspects that, according to many experts, are contributing to slow down the DeFi development. The Avalanche platform possesses certain characteristics, some of which are common to other ecosystems, while others are completely different and innovative. Starting from the first ones, it's worth mentioning the value of being an entirely open source project, in other words, open to all developers interested in the features made available.
Additional features are:
All this allows the ecosystem to be able to be active and used for different functionalities, also supporting ETH development toolkits, launch of applications related to decentralized finance, blockchain structuring by companies or small private developers and much more.
In the previuos section (OVERVIEW) I introduced you Avalanche (AVAX) and I said that Avalanche is a layer one blockchain, which can be used as a platform for decentralized applications and custom blockchain networks. It is one of Ethereum's competitors and aims to replace Ethereum as the most popular smart contract blockchain. Its goal is to achieve this goal with a higher transaction output of up to 6,500 transactions per second without compromising scalability. Avalanche's unique architecture makes this possible.
Now let’s see some features of Avalanche.
DEEPENING
The functioning of Avalanche is based on a complex, yet well-organized internal structure.
One of the main strengths is the so-called consensus protocol, which gives the possibility of guaranteeing a higher level of security and protection, while at the same time maintaining rapid transactions and exchanges, without going outside the schemes of a decentralized project. Contrary to other networks and ecosystems, essentially based on standard procedures, which standardize the internal system, Avalanche gives the possibility to structure solid applications, blockchain ad hoc, using specific adaptations for each individual project, purpose or use case.
In addition to the creation of specific blockchains, it is possible to focus on two additional aspects:
What about AVAX token?
As with any new cryptographic ecosystem, the Avalanche platform also has its own tool, named AVAX. It is closely associated with the governance of the project, even if its purposes are now much more extensive. Among its many functionalities, we find its use for commission payments, to make possible the processes within the network through the staking process (which, as known, concerns the immobilization and blocking of certain resources in one's possession) and much more. In all of this, in reference to the use of AVAX for commissions, it is important to keep in mind how the process is in turn linked to a mechanism of "The Burn". In other words, the instruments are literally burned, to allow for potential and hypothetical value modulation.
In last period the value of AVAX has varied a lot, marking several changes within its benchmark chart. The overall capitalization value has also changed, leading the asset to climb the ranking.
Turning to the view of the trends, as shown in the chart proposed by CoinMarketCap, even though in the late 2020s the value of the cryptocurrency also fell below 3$ per unit, it is precisely during the early stages of 2021 that the same has shown upward trends.
Now, the price of AVAX fluctuates between 22$ and 30$.
In the course of the last times the project has had the ability to generate attentions inside the market, placing itself as one of the few operators to have bet also on the creation of the NFT. The latter represent a colossal business, just born and ready to bring hypothetical new upheavals.
I’ve already talked about NFTs in this article and others that you can find in my profile.
With this article about Avalanche we have discovered new things about this project.
Next week I’ll introduce you a new cryptocurrency!
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