In 2020 Ava Labs released Avalanche (AVAX) but only after the attention it gathered the following year, more people started wondering what is Avalanche crypto. AVAX managed to climb into the top 10 cryptocurrencies by market cap in 2021 and though it has since fallen a couple of places behind, its ecosystem continues to expand at an impressive speed, the team behind it seems more than reliable and the community is very excited about it.
If you’re one of the people wondering what is Avalanche crypto today, keep reading to find out more about this interesting token and the network behind it.
What Is Avalanche Crypto (AVAX)?
Avalanche is an open-source smart contract platform for dApp launch and enterprise blockchain implementation in a highly scalable interoperable ecosystem.
A key difference between Avalanche and other decentralized networks is the consensus protocol.
It’s a common misconception that blockchains are slow or not scalable. Avalanche uses a new approach to reach consensus for secure guarantees, fast completion, and high throughput.
If you’re wondering what is Avalanche crypto and what role AVAX plays in this complex system, it’s the native token of this promising blockchain.
What Is Avalanche Crypto’s Used For?
You may be wondering what is Avalanche crypto’s use? There are quite a few. You can use AVAX to pay fees for transactions on the Avalanche network, to create pubic and private blockchains, to interact with smart contracts, implement cross-chain exchange, you can pay in AVAX to authorize or run the validator to protect Avalanche or use the tokens as a base currency for various Avalanche chains.
What Is Avalanche Crypto’s Solution as a Blockchain?
The network behind AVAX solves several issues, blockchain technology has been struggling with since it appeared. The things that Avalanche aims to achieve are:
- Finding a balance between scalability and decentralization: When the number of users on a blockchain increases, the time to build consensus when validating transactions increases as well. That’s why many blockchains struggle how to be both scalable and decentralized. What is Avalanche crypto’s contribution here is that through advanced technology, it manages to find the balance.
- Decreasing fees: What is Avalanche crypto bringing to the table here is lower blockchain fees, than many big popular blockchains, like Ethereum for example. The second-largest crypto’s blockchains is one of the most used ones but it can have extremely high fees. Avalanche tries to lower that considerably on their own network.
- Providing interactive features: What is Avalanche crypto’s another advantage is how it provides opportunities for its users. Before most projects had to turn to Ethereum if they didn’t want to make their own blockchain. Now Avalanche may provide another solution for them.
What Is Avalanche Crypto’s Way of Solving Issues?
The mentioned problems in the previous section that Avalanche aims to solve are tackled by integrating 3 interoperable blockchains, instead of 1 regular. The Avalanche Ecosystem is very vast, this means that every blockchain runs a separate task, instead of a single blockchain trying to complete multiple ones. The distribution of tasks makes Avalanche more scalable and helps it for interactive problem solving.
What Are the 3 Integrated Blockchains on Avalanche?
We won’t go into technical explanations but let’s revise what are the 3 integrated blockchains on Avalanche, to help you get the idea. They are:
- Exchange Chain (X-Chain): This chain creates and trades Avalanche assets, AVAX among them. It also generates payment fees in the native currency so if you’re trading other assets on it, you will pay in AVAX.
- Platform Chain (P-Chain): This chain allows people to create L1, L2 blockchains and even group them. It also manages the Avalanche subnet by monitoring validators.
- Contract Chain (C-Chain): This is the place for smart contracts and building of dApps, where developers are benefited by the high security of the platform.
What Is Avalanche Crypto’s Community?
The ambitions of the Avalanche project are quite impressive, right? If you’re wondering who is behind this crypto and blockchain, let’s look at that data here.
What Is Avalanche Crypto’s Developer Team?
The Ava Labs, the company behind AVAX and its blockchain is made out of specialists who have experience in one of the biggest technological companies in the US, like Google, Microsoft, Cisco, and even NASA. The combined experience and knowledge of the specialists behind Avalanche makes it easier to understand why the project is aiming so high. Emin Gün Sirer and Kevin Sekniqi are some of the leading figures of the AVAX project.
What Is Avalanche Crypto’s Investors Base?
AVAX has attracted many individuals to invest in it, some even got good returns once the crypto hit its highest price. But this project is also supported by institutional investors. Companies like Polychain, CMS Holdings, Three Arrows Capital, Dragonfly, Lvna Capital, and Collab Currency have trusted Avalanche so far.
What Is Avalanche Crypto Going to be Used for in the Future?
Considering the information we’ve provided here, you can expect two main things from Avalanche in the coming months and years: to work to become of the of the top choices for blockchains and for AVAX token to reach new highs again.
The blockchain promises to solve many issues the technology has come to face since its emergence with Bitcoin more than a decade ago. If Avalanche manages to fulfill its promises, it can definitely become an Ethereum killer, taking its spot as a favored blockchain by developers and users.
The native token AVAX can be used for many things on the ecosystem which may increase the interest of investors in it, if the projects on the Avalanche network continue to expand and develop. Both the token and the blockchain seem quite promising, now what’s left is for crypto enthusiasts to see if they’re really worth it.
👉Want the latest news on Blockchain & Crypto🪙Subscribe to the @egorithms Telegram