Avalanche (AVAX) – a new wave of dApps and NFTs
A huge wave of change for cryptocurrency is coming, and it’s Avalanche (AVAX). It has many features found in Ethereum but provides them much quicker. Should you invest in AVAX and roll with the Avalanche network?
We’ll start by talking about how the Avalanche built up. Then, we’ll discuss how it works and brings changes to the crypto space and how it fares versus similar cryptos. Later, you’ll see if you should invest in this cool crypto network.
New cryptocurrencies launch with new improvements and features. Avalanche is one of the cryptos that succeeds with its multiple use-cases and significant upgrades. After reading more about AVAX, you may find a new coin for your portfolio.
What is the Avalanche network?
Photo Credit: research.binance.com
Most people only think of bitcoin when they hear about crypto. Yet, we have coins that came out recently. For example, the Automata network and its ATA coins launched on June 7, 2021!
AVAX is one of the latest cryptos. Ava Labs created the Avalanche network, led by Emin Gün Sirer. The Avalanche mainnet launched in September last year.
Avalanche received $18 million from Andreessen Horowitz and Polychain Capital. It raised another $42 million under four and a half hours with the launch of AVAX tokens.
It is the ongoing set of upgrades for the ETH network. This new version hasn’t fully rolled out. Yet, Avalanche wants to outclass it this early! Its goal was simple: beat Ethereum 2.0!
How does Avalanche work?
Photo Credit: docs.avax.network
Ava Labs wasn’t kidding when it wanted more speed for Avalanche. Bitcoin can handle seven transactions per second. Ethereum can take 14 per second.
AVAX can handle a whopping 4,500 transactions every second! How does it reach such speeds? It’s all thanks to the Avalanche consensus. Here’s how it works:
- A validator gets a set of transactions.
- The node client submits them to the virtual machine.
- Then, it selects groups of validators at random.
- The VM will get their decisions for the set of transactions.
- It will count the ones that accept and decline the set.
- If more decisions accept the transactions, the VM will handle them. Otherwise, they will not join the consensus.
It’s the AVAX method of confirming transactions. It selects a handful of validators at random to verify Avalanche exchanges. This boosts speed and makes sure no one leads confirmations!
Earning AVAX with liquidity mining
You may earn AVAX coins in two ways. The first is liquidity mining. You lock up a certain amount of AVAX. Then you get extra coins in return. How does this work?
Let’s say a person wants to buy some Avalanche coins. Once they hand over USDC or USDT, they get the coins from a supply. Liquidity miners are the ones who provide it.
You contribute the supply to meet the demand for Avalanche tokens. In turn, you earn more coins. It’s a win-win! This makes sure that AVAX exchanges keep going.
The open-source project Hummingbird launched an AVAX liquidity mining campaign last year. Participants may earn $1,500 every week! Its total reward pool was $36,000.
Earning AVAX by staking
Staking also lets you earn more cryptos. Similar to liquidity mining, you’ll set some coins aside. The difference is you play one of the important roles in the Avalanche network.
Remember the validators we talked about? You may become one of them by staking 2,000 AVAX tokens. Also, you’ll need a node client and a computer.
What’s great about it is you don’t need a powerful machine. Bitcoin miners spend thousands of dollars for their mining rigs! Your PC should be online at all times.
If you don’t have that much, you may become a delegator instead. Pay 25 AVAX to a validator so you can earn a bit more. Choose them carefully to ensure the most returns.
Related Article: Ethereum vs. Bitcoin – What’s Better?
AVAX’s cool chains on the block
The earlier functions are just in one of the AVAX blockchains. There are three of them that perform an important role for Avalanche. We’ll go by each one in detail below:
- Exchange Chain (X-Chain) – It allows users to create dApps, programs that work using blockchains easily. Also, it lets anyone create digital assets like NFTs and other tokens.
- Contract Chain (C-Chain) – This allows the transfer of dApps from the Ethereum network to Avalanche. It supports well-known ETH features like smart contracts by MetaMask and Remix.
- Platform Chain (P-Chain) – It enables Validators to work together. What’s more, people may use it to make new subnets.
Subnets or subnetworks are blockchains within the Avalanche network. This gives it purpose outside decentralized finance (Defi). Subnets can help services from other industries.
Thanks to the C-Chain, the Avalanche can build up with more dApps. This makes the network more useful. This is also great news for investors in the long run.
Should you invest?
At the time of writing, the AVAX price was $13.66. There are 720 million of its native tokens. As we’ve discussed, it rewards validators and stakeholders.
Also, AVAX coins are used to pay transaction fees. The network burns them, though. This keeps the supply low and the value high. As the crypto market is picking up, you should grab some!
The prices are relatively low because of the earlier bitcoin crash. The big BTC seems to be getting back on its feet, though. What’s more, it has a good chance of rising in the crypto list.
It’s better than Ethereum in many ways. It’s the #2 crypto that now has numerous real-world uses. Ethereum is also becoming more popular due to NFTs.
Avalanche has potential for long-term returns! Meanwhile, the Avalanche allows ETH dApps. This means AVAX may grow alongside Ethereum.
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Final thoughts
Don’t just take our word for it. Verify yourself if AVAX is a good investment. You may find numerous free online resources that can help.
More importantly, learn more about cryptocurrencies in general. Understand how they work and what they do. Also, look at the other cryptos available.
Check CoinMarketCap to see the trending coins and how they move. Read other Inquirer USA articles for more crypto insights. Never invest in anything you don’t understand.
Learn more about Avalanche (AVAX)
What is Avalanche (AVAX)?
It’s a crypto network made by Ava Labs. The Avalanche network allows the creation of dApps and separate blockchains. Its native token is called AVAX.
Is Avalanche crypto a good buy?
Yes, because it’s cheap right now. You might want to buy before bitcoin goes up again! Also, it has features that blend well with Ethereum, the #2 crypto.
Where can you buy Avalanche (AVAX)?
Binance lets you buy AVAX and other cryptos easily. You may also purchase them at other platforms. Would you please check your chosen crypto exchange beforehand?
Disclaimer: This article is the author’s personal opinion, which may differ from the “official” statements or facts. All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by Inquirer.net constitutes an investment recommendation, nor should any data or content published by Inquirer.net be relied upon for any investment activities.
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