Avalanche (AVAX) has emerged as one of the potential contenders in the cryptocurrency world. With its unique features and technology, it is designed to address the limitations of other blockchain networks.
In this article, AZcoin will help you learn about Avalanche (AVAX), its development history, operating mechanism, advantages and disadvantages, and the potential of this project.
What is Avalanche (AVAX)?
Avalanche is a scalable blockchain platform with fast consensus and smart contract capabilities. Founded by Ava Labs, Avalanche is designed to address scalability issues and high transaction costs of current blockchains.
Avalanche utilizes a unique consensus mechanism called Snowman Consensus to achieve rapid and secure consensus. This system can process thousands of transactions per second (TPS) at low cost, facilitating the robust development of dApp and DeFi applications.
History of the Avalanche
Avalanche was first announced in 2020 by Ava Labs, a company founded by leading computer scientists from Cornell University and Stanford University. Since its launch, Avalanche has garnered attention from many investors and the crypto community.
Looking back, 2019 was the year Ava Labs was founded by Emin Gün Sirer, a computer science professor at Cornell, along with his associates. With extensive experience in blockchain research, Sirer recognized that the practical application of blockchain still faced many limitations in terms of scalability and transaction costs.
In 2020, Avalanche launched its mainnet and attracted interest from the crypto community. In a short time, it has become one of the most prominent blockchains and is considered one of the potential projects in the blockchain market.
How does Avalanche (AVAX) work?
Avalanche uses a unique consensus mechanism called Snowman Consensus to achieve network consensus. This mechanism comprises three stages: Pre-Consensus, Network Validation, and Transaction Finalization.
- Pre-Consensus: Before a transaction is confirmed, it is placed in a pool of unconfirmed transactions on the network. Then, a random set of nodes is selected to participate in the Pre-Consensus stage, where they provide information about the transaction and their consensus on it.
- Network Validation: In this stage, the nodes re-validate the information provided during the Pre-Consensus stage. If a sufficient number of nodes re-validate the information accurately, the transaction moves to the next stage.
- Transaction Finalization: After being validated by a sufficient number of nodes, the transaction is confirmed as valid and added to the blockchain. This process occurs rapidly, enabling Avalanche to process thousands of transactions per second.
Pros and cons of Avalanche
Here are the pros and cons of Avalanche:
Pros
- High Speed and Scalability: Avalanche can process thousands of transactions per second at low cost, enabling robust growth of dApp and DeFi applications on its platform.
- Unique Consensus Mechanism: Snowman Consensus allows Avalanche to achieve rapid and secure consensus, resulting in high scalability and low transaction costs.
- Smart Contract Support: Avalanche supports the deployment of smart contracts, enabling users to create decentralized applications and DeFi products on its platform.
Cons
- New and Unproven Over Time: Avalanche is still a relatively new project compared to popular blockchains. It needs time to be tested and developed to become one of the leading blockchains in the market.
- Significant Competition from Other Projects: Avalanche faces competition from other blockchain projects, especially Ethereum – the largest blockchain platform currently with many active DeFi applications.
Information about Avalanche Token
Similar to Solana, Avalanche also has its own token called the Avalanche Token (AVAX). This token is a key component of the Avalanche ecosystem and plays an important role in processing transactions on the platform.
Technical specifications of Avalanche Token
- Name: Avalanche Token
- Symbol: AVAX
- Blockchain: Avalanche CHAIN
- Algorithm: Snow
- Proof of Type: PoS
- Total Supply: 720,000,000 AVAX
- Circulating Supply: 360,000,000 AVAX
- Distribution Type: ICO
- Launch Date: 15/07/2020
Allocation of Avalanche Tokens
- Staking Reward: 50%
- Founders: 9.36%
- Seed Sale: 2.5%
- Community and Developer Grants: 7%
- Private Sale: 3.64%
- Partners: 5%
- Public Sale: 10%
- Airdrop: 2.5%
- Team: 10%
How to buy Avalanche Tokens?
The Avalanche Token is currently listed on many top best crypto exchanges such as Binance, OKX, Coinbase, Bitget, and others. Users can purchase AVAX through these exchanges or via decentralized exchange platforms (DEX) such as Pangolin, Trader Joe, and Snowball.
Which cryptocurrency wallets store Avalanche Tokens?
Tương tự như bitcoin, Avalanche Token cũng được hỗ trợ bởi các loại ví tiền điện tử có uy tín như Ledger Nano X, Trust Wallet, Exodus, Atomic Wallet…
The future of the Avalanche
With its unique consensus mechanism and high scalability, Avalanche is indeed one of the most promising blockchains today. With support for decentralized applications and DeFi, Avalanche has the potential to become a significant platform in the development of the blockchain market.
However, Avalanche will also face numerous challenges and significant competition from other projects. Therefore, its development team will need to take reasonable steps and strategies to maintain and grow its network.
The end
I hope that through this article, you have gained a better understanding of Avalanche and have acquired more knowledge to follow and invest in this project. Please continue to read other articles to stay updated on the latest information about the cryptocurrency and blockchain market. Wishing you success, and don’t forget to contact AZcoin if you have any questions!
I am Louis Dang, living in Ottawa, Canada. I am currently working as a trader for AZCoin company, with 7 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
