What is Avalanche Network (AVAX)?
Avalanche, launched in 2020 by Ava Labs, is a blockchain platform that is capable of entering into smart contracts. Avalanche aims to offer a scalable blockchain solution while maintaining decentralization and security, with a focus on low costs, high transaction speeds and sustainability.
Avalanche is fast becoming popular in the crypto area, with Avalanche TVL currently worth $ 8.41 billion and continuing to grow thanks to Avalanche decentralized applications (DApps). Avalanche runs on the Avalanche Native Code (AVAX) and several consensus mechanisms.
With Avalanche, users can create an unlimited number of custom and interoperable blockchains. To run a blockchain on the Avalanche coin, AVAX, you have to pay a subscription fee.
What is the Avalanche cryptocurrency used for?
The original AVAX token is a tool token. AVAX acts as an exchange in the landslide ecosystem. In other words, the token is used as a currency on the network, and usually charges fees for transactions, rewards and many other uses.
It is also used in the AVAX service that provides network security. Members then receive more AVAX. Some users register with AVAX to earn passive income online.
The history of the landslide
When the Bitcoin blockchain was launched in 2009, it paved the way for the development and invention of subsequent blockchains, including Ethereum. With the widespread use of non-fungible tokens (NFTs) and decentralized financial protocols (DeFi), the technical limitations of the original blockchain design are becoming more and more apparent.
For example, the Bitcoin Proof of Work (PoW) consensus prevents decentralization to some degree due to the resource-intensive verification process. Transactions also tend to be slower. Most Ethereum applications today use layer 2 scaling solutions to solve these problems. At level 2, transactions are removed from the main chain. They are then folded into neat “packets” that are sent back to the Ethereum network, which reduces the load on Ethereum.
Although effective, this solution adds several layers of complexity, leaving the network open to certain security threats. So how can a blockchain keep everything in a decentralized and scalable, yet secure layer 1 protocol?
Join Ava Labs, the founder of Avalanche, who came up with a fantastic tri-blockchain solution to solve the most critical blockchain-related issues. In September 2020, Ava Labs launched the US Avalanche blockchain after raising $ 6 million in a round of funding. Their subsequent token sales – both private and public – totaled $ 48 million.
Who is behind the avalanche (Afax)?
There are three people behind the avalanche: Kevin Schenicki, Mowan “Ted” Yin and Amin John Serer. A group under the pseudonym Team Rocket first published background information about the protocol in May 2018 on the interplanetary file system.
The technology was then developed by a team of researchers at Cornell University led by Cornell University computer science professor and software engineer Emin Gun Sirer. He was assisted by two doctoral students: Mowan “Ted” Yin and Kevin Chenicki.
The Avalanche Consensus Protocol The AVA database became publicly available in March 2020. The Avalanche Initial Coin Offering (ICO) ended in July 2020, followed by the launch of Avalanche in September of that year.
What problems does an avalanche (AVAX) solve?
As mentioned earlier, Avalanche was created to solve several problems that most blockchain networks face. By offering an alternative to networks like Ethereum, platforms like Avalanche fight against centralization in the crypto space.
The two most important questions that an avalanche solves are:
Avalanche was specially designed for scalability. At the level of top-level payment systems such as PayPal and VISA, Avalanche’s transaction time is less than a second.
Avalanche is also incredibly powerful and efficient and can process up to 6,500 transactions per second with completions of less than one second. This is a significant improvement over Ethereum’s limits on the number of transactions that can be processed per second.
Avalanche is considered by many to be a competitor to Ethereum, Avalanche is also Ethereum superior when it comes to gas taxes. Landslide fees are much cheaper than Ethereum.
The fees on the network are used for various purposes, such as asset creation and minting, storage, transaction fees and blockchain creation, after which these fees are burned, which permanently reduces the amount of AVAX on the platform.
Used fees are burned because “AVAX USD is the rarest resource used to pay fees and secure the network.” Share Avalanche on Twitter. The AVAX record can be checked at burnavax.com