What is Avalanche (AVAX)?

Avalanche – AVAX

Avalanche ($AVAX) is one of the fastest, cheapest and most decentralised blockchains in the world. Also labelled an Ethereum Killer…

This is a Project Review on the Avalanche Network.

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What is Avalanche – AVAX?

Avalanche – AVAX first launched in September 2020 after raising over $40M in funding from a token sale. Now is known to be one of the world’s largest and most highly used blockchains, with a current TVL of $854M.

Avalanche is a decentralized proof-of-stake network designed to be ultra-scalable, fast, secure and flexible. The network allows developers to seamlessly launch decentralised applications (dApps) by offering more programmability and features than networks like Ethereum.

How does Avalanche Work?

The Avalanche Network is intended to support many blockchains to be built on top of it, making it easier to connect existing blockchains to it, support multiple programming languages and virtual machines like the EVM, and import balances.

The Avalanche network consists of 3 built-in blockchains:

X Chain – is used to create and exchange assets, such as Tokens & NFTs
P Chain – is used to coordinate Validators & create ‘Subnets’.
C Chain – is used for the creation of Smart Contracts & supports features like Metamask wallet.

The C-Chain is the network we use to hold, swap and facilitate transactions on the Avalanche blockchain.

 

Why Avalanche?

AVAX is known for its incredibly fast and cheap transactions, processing a whopping 6500 transactions per second! Visa is only able to process 1700 transactions per second, with a huge difference of 4800 transactions!

The Avalanche Network is 20x cheaper and 100x faster than Ethereum. Avalanche processes an average of 548,000 transactions per day and growing!

Gas fees on the AVAX network have always been extremely cheap, but there was a time when it was considered more expensive as popular games like Crabada would congest the network. Then, the Swimmer Network came along which is Crabada’s very own subnet, living on the Avalanche Network.

Upon the release of the Swimmer network, the AVAX network saw a huge drop in gas prices! Therefore, proving the subnet’s ability to make Avalanche – AVAX more sustainable.

Down below we go will go through the Avalanche ecosystem which is notorious for DeFi protocols.

 

What are Avalanche Subnets?

Subnets are one of Avalanche’s main components. They are independent networks which specify their own rules, tokenomics and security. Subnets allow the Primary Network to enable higher transactions per second and lower transaction costs!

Subnets, however, do not share storage and networking with other Subnets and even the Primary network. Some believe ‘Subnets’ are just a different alias for ‘Shards’.

Here are some existing Avalanche Subnets:

  • Swimmer Network – @Swimmer_Network & Powered by @PlayCrabada – Crabada has an extremely high user-base and the swimmer network has allowed both Avalanche and the Crabada protocol to grow exponentially.
  • DFK Chain – @DeFiKingdoms – DeFi Kingdoms is yet another popular protocol that was creating too much congestion on the Avalanche network, so the DFK Chain came to existence.

and soon come @VaporChain & many more which are on the Avalanche Testnet being tested and scheduled for launch…

Subnets & Validators

Creating a Subnet will require validators and each validator must have a minimum of 2000 AVAX staked. Validators also have the option to be a part of other Subnets.

AVAX requires Validators to pass a set of requirements such as holding a specific license, passing a KYC/AML check & the location of the Validator.

Validators currently account for over 86% of all the Stake $AVAX, leaving only around 14% held by Delegators.

According to the Avalanche team, the power of subnets allows the Avalanche blockchain to achieve unlimited transactions per second (TPS) which absolutely blows every blockchain out of the pond.

In my opinion, Subnets are perfect for blockchain protocols that have a large user-base and want to have their own ecosystem without having to make their own blockchain! I believe many popular protocols on other blockchains could possibly move over to Avalanche and create their own Subnet.

 

Avalanche Ecosystem

The Avalanche Ecosystem is vast and has some of the most popular DeFi protocols out of all the blockchains. Avalanche makes it easy for newcomers to visit their ecosystem of applications. Here is a list of popular DeFi applications on the AVAX network.

  • Trader Joe – The number one DEX (decentralised exchange) to swap, provide liquidity and stake on the Avalanche network. Check out our article on Trader Joe, here.
  • GMX – GMX is the best decentralised Spot & Perpetual trading platform on the Avalanche network. Check out our article on GMX, here.
  • Kalao – Avalanche’s number one NFT marketplace that competes with the dominating Opensea.
  • Castle Crush – Real-Time multiplayer strategy card game!

There are so many different decentralised applications suited for everyone’s desires and needs! Whether you’re looking to trade, swap or earn from cryptocurrencies, or collect and trade NFTs, the Avalanche ecosystem has it all.

The ecosystem is perfect for both users and developers, don’t believe me?

You can explore the Avax Ecosystem on your own, click the link below which will take you to another page.

Ecosystem – https://core.app/ecosystem/home

 

Partnerships

In recent months, Avalanche has landed some of blockchain’s most historical partnerships, tapping into multi-billion dollar industries. These partnerships will shape Avalanche into the perfect blockchain, for both users and developers. Let’s take a look at the ones that caught our attention:

  • Amazon Web Services Cloud (AWS Cloud) – This incredible partnership will see that the Avalanche network is adopted by large enterprises, institutions and governments! AWS will strengthen the blockchain and provide users with capabilities to launch and manage $AVAX Nodes seamlessly.
  • AliBaba Cloud – Alibaba is providing its global cloud computing services by providing Nodes as a Service (NaaS), allowing users to set up an AVAX node in 3 simple steps.
  • Shopify – This surreal partnership allows merchants on Shopify to Design, Mint and Sell Avalanche NFTs! With the number of people starting up online businesses every day, I’m sure we’re going to see a spike in AVAX NFT volume!

This is just the beginning of a series of amazing partnerships. In the future, other companies will discover the true powers of the Avalanche blockchain.

 

How To Buy $AVAX

There are two main ways to buy $AVAX, but either way, you will always go through a centralised exchange (CEX). Here are the options:

Option 1- Centralised Exchange

The $AVAX token is one of the easiest cryptocurrencies to obtain. 99% of the largest centralised exchanges allow you to buy or trade $AVAX.

Here are some Centralised Exchanges we recommend for you to buy or trade the $AVAX token:

Option 2 – DeFi Wallet & Decentralised Exchange

You can swap $AVAX tokens on many of the major blockchains if you haven’t got the AVAX network set up on your Metamask or alternative DeFi wallet.

Here is a list of alternative blockchains that allow you to buy/swap $AVAX tokens:

  • BNB Chain
  • Fantom
  • Moonbeam
  • Polygon

The best thing to do is set up an Avalanche wallet, read more below.

 

How to use the Avalanche Network?

Using the Avalanche Network is very simple. Just set up a Metamask wallet, add the AVAX network, and send $AVAX tokens from a CEX (any of the listed above) to your Avax Wallet Address found in your Metamask wallet.

You can check out our YouTube video which guides you every step of the way!

Metamask Tutorial https://www.youtube.com/watch?v=Vpm0ZtgKS2Y

Avalanche Tutorial https://www.youtube.com/watch?v=axMUc0DPz7M

 

Conclusion

The native token on the network is $AVAX, which has a ‘Max Supply’ of 720 million. Currently, the native token $AVAX is worth $16.75 with a market cap of $5.3B at the time of writing. AVAX has seen incredible heights of $146 with a market cap of over $30B!

 

 

 

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