Popularly known as the ‘Ethereum-rival,’ there is a blockchain platform with benefits such as being affordable, eco-friendly, and high transaction speed. This blockchain platform is known as Avalanche (AVAX) and has gained much popularity in the recent past.
Avalnche is a platform that uses smart contracts to support various blockchain transactions. These smart contracts are programs that conduct transactions automatically if specific conditions are met. There is no need for an intermediary for the same.
Why was Avalanche Created?
Avalanche was created as a rival for Ethereum, the largest contract-based blockchain in the field. Though Ethereum is quite popular among crypto users, it has some loopholes. As per experts, Ethereum transaction speed is relatively slow, and the fee is entirely on the higher side.
These issues led to designing some rival blockchains, one being Avalanche (AVAX). A New York-based lab named Ava Labs was responsible for developing a reliable alternative for Ethereum. Thus, came into existence Avalanche in the year 2020.
As soon as it was launched, the platform quickly ranked higher in cryptocurrency rankings. Also, its worth is simply skyrocketing with each passing day.
What is the Working Model of Avalanche?
The said platform is composed of three blockchains different from other platforms built on one blockchain. This implies that each blockchain has been assigned a task within the broader ecosystem rather than one blockchain chain performing all the charges.
These blockchains are:
- Exchange chain (X-chain);
- Platform Chain (P-Chain)
- Contract Chain (C-Chain)
Exchange chain: This blockchain is responsible for building and transacting different Avalanche assets. Transactions made on this X-chain blockchain generate the fee for which you can use AVAX to pay.
Contract chain: This particular blockchain is responsible for running smart contracts for the said Avalanche platform. Also, this blockchain makes the platform EVM or Ethereum Virtual Machine compatible. This implies that one can quickly deploy Ethereum smart contracts on the Avalanche platform.
Platform chain: This blockchain is responsible for creating an L1 or L2 blockchain. One can even create a group of these blockchains using this platform chain.
What is the AVAX token?
AVAX is the Avalanche token that acts as the exchange medium within the ecosystem. In simple words, AVAX is used as the currency in the Avalanche platform. Also, investors need to pay the transaction fees through this token.
Pros of Investing in Avalanche
Here are the benefits of investing in Avalanche:
There are blockchains in the market that are not scalable. This is a significant issue with many blockchains. However, this is not the case with Avalanche. It has been designed to offer 4,500 transactions every second, adding to the platform’s scalability feature.
Ability To Interact
Another benefit of this platform is that it can easily interact and trade with other forms of cryptocurrency. Avalanche permits the creation of various subnets that can work unitedly on its blockchain. This enables other blockchains to interact and even share data and assets.
Easy To Use
Avalanche is easy to use and can be implemented quickly on various applications out there. Even developers find it user-friendly. All the users and organisations can deploy the Avalanche L1 and L2 blockchains. This ensures that they can use the platform for further developments.
The different advantages of Avalanche make it one of the most highly used cryptocurrencies to date. Also, these features and benefits add to the already high popularity of the platform among users and investors. If you are looking to profit from this emerging crypto platform, you can begin by contacting an expert to get more information on the blockchain. Happy investing!