Project Name: Avalanche
Project Ticker: AVAX
Twitter Account: twitter.com/avalancheavax
Whitepaper: Click here for the whitepaper.
What Is Avalanche (AVAX)?
Avalanche (AVAX) is a smart contracts blockchain platform that aims to offer high transaction speed, low costs, and eco-friendly options. The ultimate goal of Avalanche is to provide scalability without compromising security and decentralization.
Avalanche provides infrastructure services for decentralized finance (DeFi) applications, digital assets, and trading platforms. The native token of the platform is AVAX.
What Does Avalanche (AVAX) Offer?
There are three features to bring Blockchain Technology to perfection, and these are decentralization, scalability, and security. The Avalanche network aims to offer these three features to the users of the Avalanche network. It aims to provide a secure network infrastructure with low transaction fees. Unlike Proof of Work (PoW), Proof of Stake (PoS), or Delegated Proof of Stake (DPoS), the Avalanche consensus protocol does not require a center for consensus. In other words, this feature increases the decentralization of the Avalanche network without sacrificing scalability. In PoW, PoS, and DPoS, transactions are processed by an individual, and the work of that individual is then verified by others.
Moreover, Avalanche has an interoperability feature on its network, which is unlimited. For example, there is a token bridge between Avalanche and Ethereum that enables smooth ERC-20 and ERC-721 transfers. Users can lock assets into the ChainBridge contract and mint an equivalent token on the Avalanche network to use Ethereum-based assets with DApps (decentralized applications) on Avalanche.
Avalanche’s (AVAX) Technology
Avalanche offers three main blockchains to solve decentralization, scalability, and security issues of the blockchain. These three networks are X-Chain, C-Chain, and P-Chain.
- Exchange Chain: It is used to generate and exchange AVAX tokens and other assets. The transaction fees on the network are paid using the ecosystem’s native token AVAX.
- Contract Chain: Developers can create smart contracts for DApps on C-Chain. This chain incorporates an instance of EVM, allowing coders to fork EVM-compatible DApps. C-Chain uses “Snowman”, a modified version of the Avalanche consensus protocol.
- Platform Chain: The platform chain keeps track of active subnets by coordinating network validators and allows the creation of new subnets. Subnets consist of groups of validators that offer consensus for personalized blockchains. A blockchain can only be verified by one subnet, but each subnet can verify more than one blockchain. Platform Chain, as in the Contract-Chain, uses the Snowman consensus protocol.
Working on the 3 Avalanche main chains, the Snowman consensus protocol lines up transactions linearly based on the Avalanche consensus protocol. This feature is useful when interacting with smart contracts. Unlike the Avalanche consensus protocol, Snowman creates blocks.
The Avalanche (AVAX) Team & Company
Avalanche was founded in September 2020 by Ava Labs in the USA. The Ava Labs team consists of Kevin Sekniqi, Maofan “Ted” Yin, and Emin Gür Sirer. Emin Gür Sirer is the CO of Ava Labs, and he has co-chaired the Initiative for Cryptocurrencies and Contracts (IC3). Sirer is best known for his contributions to operating systems, distributed systems, and fundamental cryptocurrency research. Kevin Sekniqi is Co-Founder and Chief Operating Officer at Avalanche and Chief Protocol Architect at Ava Labs. Sekniqi has conducted research in the fields of distributed systems, cryptography, security, and economics at Cornell University. He has also worked as software engineer and conducted research at leading organizations, including Microsoft and NASA.
Avalanche (AVAX) Collaborations
Avalanche continues to make significant collaborations. In November 2021, Avalanche announced a partnership with audit and consulting services firm Deloitte. At the beginning of 2022, Turkey's global technology brand serving in the field of mobility Togg and Ava Labs announced their collaboration. Avalanche's other collaborations are as follows:
- SIMBA Chain
Avalanche’s (AVAX) Digital Asset Economy
As of January 19, 2022, the amount in circulation is approximately 245M AVAXs. AVAX has a maximum supply of 720,000,000 tokens. Ava Labs has raised $6M in the fundraising round and a total of $48M through private and public token sales that followed. The market ranking within the token ecosystem is 12.
Evaluation of Avalanche (AVAX)
Ethereum has been an exceptionally reliable and popular network thanks to its high transaction speed and decentralization features. However, due to high transaction fees, decentralized finance projects have started seeking alternatives to the Ethereum blockchain. Blockchains like Avalanche have become alternatives because they are EVM-compatible and offer low transaction fees. On the other hand, DeFi platforms already have a lengthy list of alternative platforms when it comes to scalability and speed. Avalanche has proven itself after its success in 2021 and continues to be one of the world's largest smart contract and blockchain projects with a high number of users and developers.