Below is a brief description of Avalanche from its developer documentation:
“Avalanche is an open-source platform for launching decentralized applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Avalanche is the first smart contracts platform that processes 4,500+ transactions/second and instantly confirms transactions. Ethereum developers can quickly build on Avalanche as Solidity works out-of-the-box.
“A key difference between Avalanche and other decentralized networks is the consensus protocol. Over time, people have come to a false understanding that blockchains have to be slow and not scalable. The Avalanche protocol employs a novel approach to consensus to achieve its strong safety guarantees, quick finality, and high-throughput, without compromising decentralization.
“AVAX is the native token of Avalanche. It’s a hard-capped, scarce asset that is used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche. 1 nAVAX is equal to 0.000000001 AVAX.“
Here are a few highlights from his comments about Avalanche:
“The specific use cases that Avalanche is developing to accommodate for include things like private securities, initial litigation offers… basically allowing investors to take a cut of lawsuits… There’s actually one going on right now for like a billion dollars using Avalanche. So, that’s a really interesting use case. As well as decentralized exchanges,… stable coins, prediction markets, equities, bonds, debt, real estate…
“So, largely we’re looking at something on the more traditional side of finance when it comes to it. In total, there are already over 1,800 tokenized assets on Avalanche, which I think is really incredible considering that Avalanche has only been operational for less than a year right now. So, that’s crazy. Avalanche also has partnerships in place with loads of hot cryptocurrency companies… So, in terms of having a functioning ecosystem, it’s actually way ahead of many of the 2017-2018 zombie chains… It’s also quite impressive that they have done so much in just a such a short amount of time.
“Now the Avalanche token, called AVAX, has a maximum supply of 720 million AVAX, of which half are currently locked into the network for staking… The AVAX token has a current staking ratio of around almost 84% of the entire network…
“So, overall, Avalanche is a very very interesting blockchain network. They’ve done an incredible amount of building in a very short amount of time, putting many other networks, whom you know have been around for a longer time, basically to shame with what they’ve already been able to deliver for their blockchain ecosystem.
“Their technical specifications [are] top-notch, very interesting, obviously team behind it makes this quite exceptional as well. The stake rewards are attractive. It’s no wonder we’ve seen so many people piling into Avalanche to get those stake rewards. Token burns make for interesting token velocity over time. My guess is that we’re going to hear a lot more about Avalanche moving forward.“
Currently (as of 22:30 UTC on March 29), according to data by CryptoCompare, AVAX is trading around $29.32, up 4.08% in the past 24-hour period.
Last Thursday, Ava Labs founder and CEO Professor Emin Gün Sirer, who does computer science research at Cornell University, announced that Phase One of the Apricot upgrade (which will enable users to “start saving 50% on transaction fees when engaging with smart contracts on the C-Chain”) would be activated at 10:00 ET (or 15:00 UTC) on 31 March 2021.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.