Avalanche AVAX

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Avatar for pandoru1997
1 year ago

Figuring as one of the most promising Blockchain projects today, let's get to know the history, development, usefulness and some curious facts about Avalanche and the AVAX token.

The race for the Blockchain ecosystem is getting tighter every day, especially in light of the advances in different projects that seek to catapult themselves as the best options against what Ethereum offers.

Avalanche, a recently created project, has made significant achievements in terms of scalability and decentralization, aiming to become a unified global network that is easy to use, supports a large number of use cases and promotes the adoption of Blockchain within a large number of ecosystems.

In this new article we take an in-depth look at the history and evolution of Avalanche, the Blockchain network launched by the AVA Labs team.

Technical specifications

Name: Avalanche

Symbol: AVAX

Link in CryptoMarkets: Avalanche (AVAX)

Responsible company: AVA Labs

Creator/s: Emin Gün Sirer and AVA Labs team

Launch date: September 2020

Type of issuance: Finite (Cap of 720,000,000 AVAX)

Type of network: Open


History and origins of Avalanche

Avalanche is a Blockchain network launched and supported by the AVA Labs team, which serves as a platform for smart contracts and operates through the use of the AVAX token, which functions as a currency for processing transactions within the network and as a means for mining participants to place funds as collateral (Staking).

The project was officially launched in 2018 by Emin Gün Sirer and the AVA Labs team, who set out to develop a network that would solve the scalability and usability problems present in Ethereum, the blockchain that hosts the largest number of projects that make use of blockchain technology for various purposes.

Therefore, one of the main changes it brought to the Ethereum network was the fact of proposing a Proof-of-Stake (PoS) consensus algorithm, with which the interested community would support the processing of blocks by putting AVAX funds as collateral, thus capitalizing rewards in the digital currency. This mechanism would provide greater decentralization to the network, turning block processing into one of the most lucrative activities for the community, in turn endowing the currency with deflationary properties as part of the commissions are burned, thus reducing the available supply.

A very successful ICO

As part of its funding model, the AVA Labs team conducted the private sale of AVAX tokens to the interested community, making it one of the most successful ICOs in recent times.

According to information published on its official blog, in a first private sale to a select group of investors, the company managed to capitalize some USD $12 million. This campaign took place on June 24, 2020.

Subsequently, the AVA Labs team announced the public pre-sale of its token on July 22nd of the same year. The presale was so well-received that it raised a total of USD $42 million in just over four hours, quickly exhausting the total amount of assets originally set aside for the sale.

What does Avalanche's proposal consist of?

While there is strong competition for what some define as the next generation of Blockchain networks, Avalanche's proposal aims to create a unified, easy-to-use global network that supports a wide range of financial applications and use cases, incorporating technology designed by AVA Labs that enhances aspects such as speed, scalability and decentralization.

To this end, the network implements a system based on Proof-of-Stake that allows millions of participants to validate operations while thousands of transactions are processed per second, thus guaranteeing an almost immediate speed at the moment a transaction is made.

According to the AVA Labs team, it is precisely this aspect that serves as a driver for financial products, since under this system, the Avalanche network is also open for the incorporation of sub-networks, which operate through virtual machines that also allow interconnection with other Blockchain in the form of bridges.

In this way, the network has support mainly intended for today's most trending markets, such as digital asset trading, the decentralized finance ecosystem (DeFi), buying and selling of non fungible tokens (NFT), and many other use cases.

Benefits for asset issuers

Taking into account the above, the AVA Labs team emphasizes that anyone wishing to issue assets over the Avalanche network has important advantages, which although other networks also offer, here there is greater ease since it is done with "Plug and Play" technology.

For the issuance of assets, operators can:

  • Endow your digital assets with specific properties.

  • Especifique si van a operar en una red pública o privada.

  • Deploy the smart contracts associated with the case, which will have features and properties that fit the needs of the project.

  • Include additional customized conditions, in order to adjust the operation of the assets to the legal frameworks applicable in each jurisdiction.

About the AVAX token

Since the official launch of Avalanche took place last September 21, 2020, to date the AVA token has a little more than six months operating in the main markets, having a quite remarkable commercial evolution with especially good moments for its investors.

As of last September 21, its token began trading in the main markets at a cost of USD $4.6 per unit. This price was more than 150% higher than the price at which the token was traded in its public pre-sale, which was estimated at around USD $1.7 at that time.

However, after a progressive fall that lasted for the next three months, it was in January of this year when its price began to increase significantly, trading by the middle of that month at over USD $12 per unit. But the best moment took place on February 10, 2021, when the value of each AVAX exceeded USD $52, deriving gains close to 1,000% with respect to September last year.

Although the price of the AVAX token fell after reaching these highs, at the time of publication it remains above USD $27 per unit, with a longer trading history and a strong commercial emphasis, prioritizing the growth of its user community through technology and advertising campaigns.

Highlights about Avalanche/AVAX

In addition to the aforementioned elements, the Avalanche project also has other interesting aspects to highlight:

  • Competition for the third generation of Blockchain: As such, Avalanche is among the Blockchain competing for the position of the main network of the third generation. Analysts and enthusiasts compare the robustness of its technological proposal with others such as Polkadot, Kusama and Cardano, making it emerge as one of the main alternatives for the future.

  • Bridge between Avalanche and Ethereum: Currently the network already has its first bridge that allows the exchange of assets with the Ethereum network. It also allows the transfer of tokens such as WBTC, AAVE, UNI, and LINK.

  • Attracting DeFi's attention: Recently, one of the DeFi protocols with the highest trading volume on the Ethereum network, SushiSwap, announced that it was expanding its operations to the Avalanche network precisely by seeking greater speed and economy for its operations.

Social networks and website

Twitter: @AvalancheAVAX

Facebook: https://www.facebook.com/avalabsofficial

YouTube: https://www.youtube.com/channel/UCScsLTtz5DCwJodZ8ht9KNA


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Avatar for pandoru1997
1 year ago