What is AVALANCHE?- Understanding the AVAX Blockchain

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2 years ago

Truly one of the things that makes the crypto space quite fascinating is diversity. And this fact can be proven just by taking a general look at everything- Just so many options to choose from, with each coin trying to present ways to address one issue or the other uniquely.

Lotta aspects of what we do today have actually started to be imparted by a touch of cryptocurrency and various blockchains. Ranging from finance (CeFI and DEFI), Music, Gaming, Banking, Sports, etc

Today, I'll be writing on Avalanche- a unique type of blockchain in the crypto space and what you should know.


INTRODUCTION

Officially launched in 2020, Avalanche is a high-performance, scalable, customizable, and secure blockchain platform. Like many other crypto blockchains, it is decentralized and allows for the development of programmable smart contracts for decentralized applications.

The native token of the Avalanche blockchain is AVAX which has a capped supply of 720,000,000 tokens- meaning that not more than 720M AVAX tokens can be created...ever!

AVAX serves as the key utility token of Avalanche and it can be used to pay for fees on the network, governance, and to provide the basic unit of account between the multiple blockchains deployed on the larger Avalanche network.


UNIQUE DESIGN/ STRUTURE

Source: Picture snippets from the Avax website

Avalanche is a unique blockchain designed to have a 3-chain structure with each chain having its own peculiar function. I call this unique because It seems to be one of a kind as I have seen so far. The blockchain is divided into X-Chain, C-chain, and P-chain.

X-chain: This is the first chain. It is decentralized and designed to be easy to program. It enables anyone to create and mint other smart digital assets- ranging from stablecoins, utility tokens, NFTs, wrapped tokens, equity, and more.

C-Chain: This is the conversion chain, and It was created to simplify the conversion for Ethereum Dapp developers and thus, users can migrate their Dapps to this blockchain seamlessly.

P-Chain: The P-Chain is responsible for the utilities of the network. It is responsible for coordinating Validators, creation and monitoring of new subnets, as well as staking of tokens on the network.


ADVANTAGES OF THE AVAX BLOCKCHAIN

Source: Picture snippets from the Avax website

The AVAX blockchain actually has quite a couple of advantages that could come in handy some of which include;

Fast Transaction speeds

Transactions on the Avalanche blockchain actually have shorter processing time and thus, occur at blazing fast speeds. Less than 2 seconds in some cases and way more efficient than Bitcoin, Ethereum, and some other popular blockchains.

Energy-efficiency

Compared to Bitcoin and Ethereum, Avalanche uses an energy-efficient and more environmentally friendly mechanism to perform operations.

High scalability

Scalability is usually used to describe how well a blockchain can perform in terms of general operations and transaction processing times. And Avalanche boasts of a robust blockchain with high transaction efficiency allowing for the processing of 4,500+ transactions per second!

Low transaction fees

Despite having nice transaction speeds, Avalanche does not compromise in terms of fees. It has much lower transaction gas fees and even deploying smart contracts on Avalanche cost just a tenth of what they cost on Ethereum.

Deflationary Model

Another unique advantage of Avalanche is the deflationary model it has. This basically implies that from time to time, as various actions are performed on the blockchain, the network collects the fees in AVAX and then sends these coins to be burned. The burning of these tokens reduces the total amount of AVAX in circulation. And over time, demand can be increased.


AVAX PRICE OVERVIEW AND WHERE TO BUY

Source: The Block

It has barely been 12 months since the mainnet launch of Avalanche and the price of AVAX can be said to have undergone substantial massive growth as it continues to gain adoption and as new protocols and improvements are put into place.

Presently, AVAX is worth $48 (monitor price) and it can be purchased on a lotta popular exchanges including Binance, Huobi, Crypto.com, Ftx, Gate.io, OkCoin, etc


IMPORTANT LINKS AND SOCIALS

Source: picture snippets from the Avax website

OFFICIAL WEBSITE: https://www.avax.network/

TWITTER: https://twitter.com/avalabsofficial

COINMARKETCAP: https://coinmarketcap.com/currencies/avalanche/

TELEGRAM: https://t.me/avalancheavax

MEDIUM: https://medium.com/avalancheavax


CLOSING THOUGHTS

To be honest, Avalanche is one of the plenty projects I love, and overall, I have a positive opinion about it.

You could also do more research before you consider investing in AVAX as this article does not in any way, present itself as a form of financial advice.

Thank you for your time. Kindly let me know what you think in the comments!

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