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What is Avalanche (AVAX)?
This is a platform that’s oriented to the unveiling of the decentralized world apps, financial assets, and some other services like trades. This platform’s main aim is to become a worldwide asset exchange. With this, it enables all users to trade assets and also to launch theirs. All of these in a decentralized way using popular smart contracts and a couple of other new-age technologies.
History of Avalanche
There are 3 co-founders behind the Avalanche project. These cofounders include Maofan, Kevin Sekniqi, and Emin Gün Sirer. Emin is an expert computer scientist who’s been associated with decentralized networks and Bitcoin for a long time. While he was studying Bitcoin, he started to get concerned about its scalability, and that’s what brought about Avalanche. Avalanche was the reward for the exhaustive research he had made.
With this new project, there’ll be a way higher total volume of transactions compared to Bitcoin and also has the tendency of competing with Visa. Maofan and Kevin, the remaining co-founders, are also part of Cornell, which is the same university. There’s an entire team that consists of professionals in the field of economics, computer science, law, and finances behind this project. Ava Labs is this team’s company.
The official launch of the project was in 2018. Although the mainnet of Avalanche was unveiled on the 21st of September, 2020, which was successful. As expected, some of the funding for Avalanche was an initial coin offering. The team set the date for the AVAX tokens private sale for the 24th of June 2020, and it was clearly a successful one. The info on their official blog stated that investors were the target of its first sale, and it has a total capitalization of $12,000,000.
A short while after that, the project team announced an AVAX tokens public sale on the 22nd of July 2020. In the second sale, they raised a whopping $42,000,000 in less than 4 hours. Not to even talk about the fact that they sold out the whole coins they unveiled for the sale.
They didn’t only launch a platform but also a native token with the name AVAX. This is the token responsible for performing several tasks in the platform like payment and reward system for users.
Avalanche: How does it work?
Just like we are aware, Avalanche is an open-source platform with the aim of unveiling decentralized apps and also new blockchain implementations. Users can interoperate all this, and its ecosystem is highly scalable, above all.
Now, why is this platform one of the highly important ones when it comes to smart contracts? This platform is the foremost one that’s able to confirm transactions in not up to a second, and that’s what made it have an edge over a titan like Ethereum. If that’s not enough, it’s also in support of the development toolkit of Ethereum and provides the chance for lots of validators to create whole blocks.
Avalanche is able to process higher magnitude orders compared to the other blockchain networks. What we’re talking about is over 4,500 TPS (transactions per second). One of its other advantages is that its security is better than 51% of other networks.
This network makes use of a system that’s based on the PoS mechanism where several users can be operative validators managing to process a whole lot of transactions every second. This assures the high speed that’s able to compete with Ethereum when it performs transactions.
This system is where the avalanche network enables merging other sub-networks operating through virtual machines, thereby enabling other blockchain interconnection just like bridges. Thereby, this platform supported trending markets like the purchase and sale of the DeFi ecosystem or NFT tokens.
The Avalanche platform has a native token called AVAX. It’s used in securing the network via staking; it also works as a reward to pay network fees and incentivize users. AVAX offers a basic account unit network with several sub-networks that are merged with the Avalanche platform.
Looking at the fact that the AVAX token just launched officially, we can agree to the remarkable evolution of the token, and investors have greatly benefited from it.