Avalanche is a decentralized network specifically designed for decentralized applications and custom blockchain. The main aim of Avalanche lies to dethrone Ethereum’s dominance as the flag-bearer blockchain in the field of Smart Contracts. As the spotlight of the platform is the crazy TPS numbers that outperform most of the blockchains in the industry.
Ever since the launch of the Mainnet, Avalanche has constantly worked on empowering the DeFi and the DApp space. The platform has become so popular that other blockchains like SushiSwap and TrueUSD have integrated with the ecosystem. Further the developments of the platform also include improving interoperability between its ecosystem and Ethereum through bridges.
The native token of the Avalanche ecosystem, AVAX which is also a utility token, manifested a gigantic rally in the past couple of months. And hence the platform claims to be the ‘fastest smart contracts platform’ in the blockchain industry as measured by time to finality’.
What is Avalanche-In Brief!
Launched in September 2020 by the AVA Labs, the platform raised nearly $6 million in the first round. The founders Kevin Sekniqi, Maofon Ted Yin, and Emin Gun Sirer, intended to build such a network that addresses the issues with scalability, transaction fees, and interoperability. The platform 3 main characteristics:-
- Build DApps that are built fast & are low cost and compatible with Solidity
- Launch customized blockchains
- Scale to millions of validators with minimum hardware.
Interesting Fact: Ethereum reaches its finality in one minute whereas Avalanche in just a second!
Avalanche works on the Proof-of-Stake model where-in validators verify the transactions depending on the number of coins they hold. The PoS model, however, consumes less energy compared to that of the other models.
How Does Avalanche Work?
Avalanche, to address the issues related to scalability, high fees, or interoperability, uses a combination of unique methods. It is made up of 3 chains, X-Chain, C-Chain, and P-Chain.
The Exchange Chain(X-Chain)
Here on this chain, the AVAX tokens are created and exchanged with other digital assets where-in the rules that govern the behavior can be modified.
The Contract Chain(C-Chain)
Here is where the developers create the ‘Smart contracts’ for DApps by implementing an Ethereum Virtual Machine(EVM). It uses Snowman which is a modified version of the AVAX consensus protocol where-in the transactions are linear. Unlike the Avalanche consensus protocol, Snowman creates blocks.
The Platform Chain (P-Chain)
This chain coordinates network validators, tracks active subnets, and creates new subnets too. Subnets are nothing but a set of validators who provide consensus for custom blockchains. This chain also uses the Snowman protocol.
The Avalanche platform improves the scalability and speed as the roles and responsibilities remain diversified. Yet the native token AVAX brings all these blockchains together. Moreover, the developers have combined these concepts under two different consensus mechanisms having their job roles. Avalanche uses all nodes by implementing a Directed Acyclic Graph(DAG) consensus protocol.
Will AVAX Price Hit $500 in 2021?
AVAX price trended within a very narrow range since its inception and quickly absorbed the bullish momentum since the beginning of 2021. Initially, the asset ranged high of about 1700% and later suffered a pullback due to the May crash. However, consolidating within small ranges, the asset suddenly ranges another 1000% from the bottoms below $10.
Currently, swinging very close to its previous ATH, AVAX price may go ahead and slice through the current ATH and form a new one. Despite a minor consolidation or retest, the asset may eventually form a new ATH. However, time remains constrained and hence the AVAX price is maintained the similar pace may hit $200 by the EOY while $250 amid an extended bull rally. Yet the $500 milestone remains much distinct for the asset in the upcoming days.
Additional Read: Avalanche AVAX Technical Analysis
What Factors Affect AVAX Price Today?
Swelling DeFi Space
DeFi Space is booming on the Avalanche ecosystem as it is fully compatible with the Ethereum assets and Apps. It is also faster with higher throughput and lower fees. The products offered by the platform are Assets Issuance, Automated Market Maker(AMM), Browning and lending, and Decentralized exchanges.
Huge Institution Investments
Avalanche platform is attracting big institutions, enterprises & governments. It launches assets, builds applications, and creates subnets.
Digital Collectibles or NFTs
The platform offers the users to mint their digital assets within a second and also for less than a cent. Also, the users can create and share art collectibles along with other additional benefits.
Within the Top 10
The AVAX price’s meteoric rise dragged many other popular assets behind to secure its position within the top 10. Technicals suggest the rise would continue but with a lowered momentum, yet could hit $150 by the EOY. Also, the swelling TVL which is more than $3 billion, on Avalanche points out towards mass DeFi adoption.
|Transactional Throughput||7||14||1,500||More than 4500|
|Transaction Finality||60 min||6 min||60 sec||Less than 2 sec|
|No.of Validators||3 Pools with less than 51% hash rate||2 Pools with less than 51% hash rate||More than 200 nodes relay chain||Thousands of nodes|
Where & How To Buy Avalanche(AVAX)?
The Avalanche is the most popular blockchain in the space and hence its native token, AVAX is available for trade on most of the platforms. However, here in CoinDCX, one can experience smooth trades at affordable costs. It is India’s most trusted cryptocurrency exchange and the first crypto Unicorn.
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