Avalanche (AVAX) is a decentralized blockchain network launched by Ava Labs Team in 2020. It is a blockchain network where transaction speed, low costs, and eco-friendly operations are the center of attention. It is a smart-contract enable network that believes in scalability, security, and decentralization.
In the first quarter of 2022, the total value locked in the Avalanche has crossed 8 million dollars. Avalanche is considered to be a strong contender to produce the world’s fastest blockchain network, with a strong team and zealous community. It has beat its other major competitors Solana (SOL) and Tron (TRX).
Nu10 is a blockchain consulting firm, assisting entrepreneurs and enterprises around the world to develop their projects on the Avalance blockchain network with the best possible services. Let’s know more about the Avalanche blockchain network.
Avalanche Blockchain Network: Explained
In 2009 Bitcoin was invented. Very few knew about it and used cryptocurrencies. Following this, new inventions and revolutions were brought up in the blockchain arena including Ethereum. But, as the usage of cryptocurrencies increased, the technical limitations like transaction per speed, traffic congestion, etc., became obvious.
To tackle the problem of traffic congestion, Ethereum came up with layer-2 scaling solutions. The layer-2 solution takes the pressure off from the main chain of Ethereum. It came out to be an effective solution. But, with this came the layers of complexity, and the question of security rose.
So, the real question is how can a blockchain be built that is decentralized, scalable, and secure? The answer came with the Avalanche blockchain network. Eva labs created and launched the Avalanche blockchain network in September 2020, with initial funding of 6 million dollars.
Users can create multiple customized and interoperable blockchains. One just needs to pay a subscription fee in AVAX coin, for the smooth functioning of the blockchain network. A perfect three-layer blockchain solution that solves some critical problems that plague the blockchain ecosystem.
Working Mechanism Of Avalanche-
Avalanche leverages three different blockchain solutions to offer the fastest smart contract-based blockchain network. Avalanche states to be "the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality."
The three blockchain networks it works on are-
- X-Chain – It is used to manage assets by leveraging the Avalanche consensus protocol.
- C-Chain – With the help of the Snowman consensus protocol, smart contracts are being created here.
- P-Chain – P-Chain blockchain is used to coordinate validators. The Snowman consensus protocol is used here.
The working of Avalanche consensus protocol is quite similar to Snowman consensus protocol. But, the Snowman consensus protocol uses blocks in a linear process. To validate the transactions the Avalanche consensus protocol randomly confirms the transactions, where all nodes work parallel to each other. When a transaction is validated randomly, it increases the probability of a transaction is valid.
AVAX Token
AVAX is the native token of the Avalanche blockchain ecosystem, which is also a utility token. It is used as currency in the network for multiple purposes like transactions, incentives, etc. A provision for staking of AVAX token is also available. If users stake AVAX tokens, then they will be awarded more AVAX tokens. Users also stake AVAX tokens for the purpose of passive income generation.
Users can buy AVAX tokens from the following crypto exchanges:
- Uphold
- Binance
- BitPanda
- Gate.io
Benefits That Avalanche Blockchain Network Provides-
Avalanche blockchain network was created with a motive to eradicate or minimize the issues with the blockchain networks like Ethereum. It came as an alternate solution to address the common problems of crypto space with its unique network structure.
- Interoperability - It is one of the crucial factors that Avalanche focused on. There are only a few blockchain networks that allow the interoperability of data to other blockchain networks. Avalanche permits different blockchain networks to share information and interoperate with one another.
- Scalability - Mining BTC requires a huge amount of energy and power. Ethereum executes only 15 transactions in one second. Bitcoin and Ethereum are highly valuable. But these famous blockchain networks have limitations that can not be ignored. Avalanche was created to be scalable and execute sub-second transaction times with extraordinary processing capabilities.
- Usability - When Blockchain technology emerged, many had notions about its usability and use-cases in various fields. Avalanche blockchain network proved itself to be useful in multiple cases to give tough competition to its rival Ethereum.
Comparison Of Avalanche With Other Blockchain
Winding up:
Avalanche claims to be a blazingly fast, low-cost, and eco-friendly blockchain network. It welcomes everyone to develop DApps on an open, programmable smart contract platform. It is known for validating millions of transactions in one go, offering an opportunity to earn passive income, providing a secure network, having low hardware requirements, and much more in one single place.
If you have an idea to develop a decentralized application on Avalanche, Nu10 will provide you with our incredible services. Nu10 is a blockchain consulting company that minutely works on details, develops a roadmap, and uses an agile methodology to develop your DApp. With our development and technical assistance, your DApp will be all set to launch in the market in a period of just 15 weeks.
Written by
Mohit Kataria
Mohit is a tech-enthusiasts who have founded and built Manthan Research and Analytics, which got acquired by M3 and got rebranded to m360 Research. M3 is a $40bn+ Japanese Medical Information firm which is the youngest Nikkei 225 company. During his tenure there, it specialized in using cutting-edge advanced analytics techniques like NLP, unstructured data analytics, machine learning to drive actionable intelligence. He enjoys breaking new ground, building & scaling high-performing teams ground up, and creating new solutions.
