The world of decentralized platforms is continuously growing with new competitors of Ethereum, the first platform to have shown that it is possible to create completely autonomous systems to offer notarization services, therefore registration of contracts of all types, and that decentralized finance is possible. .
Among the new competitors we also find Avalanche blockchain, which presents itself as an open-source platform created to launch decentralized applications and corporate blockhains in a single interoperable and highly scalable environment.
That said, it certainly does not seem to offer much different from what the Polkadot or Cardano platform and the many others created in recent years offer. Through this brief guide, we will try to understand what is different about Avalanche and its cryptocurrency AVAX? Let's find out how Avalanche blockchain works, what are its salient features and what its future is in the vast crypto world always in constant turmoil.
What is Avalanche blockchain
Avalanche blockchain presents itself as an open and programmable platform for decentralized finance applications, where you can quickly build dApps compatible with the Solidity programming language, but at low costs.
Furthermore, Avalanche presents itself as a platform on which to start a private or public blockchain customized according to the needs of your company or community. This is possible by building your own virtual machine on Avalanche and dictating exactly how it should work.
Since Avalanche is based on a proof-of-stake (PoS) consensus model, using the native cryptocurrency AVAX you can ensure the safety of your project by binding AVAX or even to process transactions. Furthermore, the presence of validators guarantees greater scalability at lower costs than mining.
Who is behind the project
The founder is Professor Emin Gün Sirer, a pioneer in the study of computer systems based on autonomous consent. In 2003 he developed Karma System, a study based on a proof-of-work model whose goal was to guarantee the transfer of files between users without depending on central servers (source: Crypto Titan by Coinmarketcap.com): the study did not go beyond the scope of academic research.
Professor Sirer then founded Ava Labs with a double office in New York City and Ithaca (but the addresses are not provided), on the site it is stated that the various project employees have previous experience at the best US and international banks and in major big tech stars and stripes.
The Ava Labs company is responsible for the Avalanche project and also for the Ryval product. The latter is a stock market for the financing of disputes.
Projects hosted by the ecosystem
The dApps available on Avalanche mainly refer to the decentralized finance and non-fungible token (NFT) sector, in addition the ecosystem hosts government and enterprise projects.
DeFi Projects: Avalanche hosts Pangolin and SushiSwap, two decentralized exchanges also operating on the Ethereum Network. It also houses the TUSD stablecoin.
NFT projects: Polyient Games, LamasticCards, Gameswap, Spore Finance have found their place here. Four projects dedicated to non-fungible collectible tokens.
Governments and Institutions: the Congress of the Mexican State of Quintana Roo has activated its own project here, in order to ensure greater transparency in the management of its legislative processes. Legislative documents produced by Congress will be certified by the Avalanche platform according to the intentions of the government entity.
Avalanche-X
The Avalanche-X initiative is reserved for development groups or individuals with a project to be developed on Avalanche, it is configured as an accelerator to guarantee the ecosystem the availability of new services for lending, derivatives, or stablecoins.
Interested programmers can present their idea through Avalanche-X, interesting projects will be considered and admitted to the growth path.
Differences from other projects
In the following table we propose a comparison between Avalanche, Bitcoin (BTC) and other known projects already mentioned in this guide to discovering AVAX.
Bitcoin
Ethereum
Polkadot
Avalanche
Second transactions
7 tps
14 tps
1,500 tps
4,500 tps
Transactional Finality *
60 minutes
6 minutes
60 seconds
Less than 2 seconds
Energy efficiency
No
No
Yup
Yup
Number of validators
Not applicable
PoW / PoS transition in progress
<200 knots
Thousands of knots
Consent protocol
Proof of Work
Proof of Work / Proof of Stake
Proof of Stake
Proof of Stake
Safety threshold **
51%
51% with PoW
33%
80% parameterized
The guarantee that a transaction cannot be altered.
** On bitcoin a so-called 51% attack can take over the network.
Among the differences that we can underline compared to other projects, certainly the characteristic of preferring a less borderless access to the platform than Ethereum or projects like TRON. Although it is true that through the guides available on the site anyone with a minimum of skills can generate their own token or Dapp, a mediated access to Avalanche appears to be preferred: see Avalanche-X
Avalanche, an 'improved' copy of Ethereum?
Let's go into some detail and look at the programming language used by Avalanche. We discover that Ava Labs uses Solidity, the object-oriented programming language created to develop smart contracts on Ethereum, and today used by numerous groups of developers to create their own application or even their own independent decentralized system.
Solidity was created to communicate with the Ethereum Virtual Machine (EVM), the beating heart of the Ethereum blockchain.
Why it is important to know this, because basically Avalanche has absorbed the fundamentals of Ethereum, reworked them and tried to improve the project with original grafts. But, be careful, there is nothing wrong with that because SushiSwap is also a replica of Uniswap.
However, before investing in Avalanche it is good to know how things stand.
The advantage of Avalanche is to have benefited from the pioneering discoveries of the Ethereum Foundation and its developers, with the addition of the skills of their founder Professor Emin Gün Sirer and to have channeled them into a new product which, if well developed, can only be an excellent stimulus for the entire blockchain industry.
What future for Avalanche?
As Bloomberg wrote in April in its monthly report on the state of cryptocurrencies, Ethereum has consolidated its role and is in the eyes of investors the main platform of decentralized finance and beyond. And this despite Ethereum being objectively limited by high transaction costs and a small number of manageable transactions per second.
Ethereum is the benchmark, but the future will not be dominated by a single platform as Gavin Wood (co-founder of Ethereum and Polkadot) pointed out. In the coming years, scientific research will improve and enhance the solutions available on decentralized platforms, and there will certainly be room for everyone.
Each investor has the task of finding the winning ecosystems of tomorrow.
Resources to learn more
To learn more about the Avalanche project, we recommend visiting the website www.avax.network, which provides a broad overview. As for the more technical documentation, it is available on the Ava Labs website under the heading whitepapers.
To get to know other people interested in Avalanche, it is advisable to subscribe to the Telegram and Discord channel. On Reddit there is the official subreddit.
Finally, Avalanche Hub is the ideal place for those who want to become a supporter and want to get into the folds of the project to get to know its details, in particular the upcoming development.
This article was originally posted on FX Empire
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