What is Avalanche (AVAX) ? - CryptoKiNews

What is Avalanche (AVAX) ? – CryptoKiNews

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What Is Avalanche (AVAX)?

Avalanche is an umbrella platform for launching decentralized finance (DeFi) applications, financial assets, trading and other services.

It aims to be something of a global assets exchange, allowing anyone to launch or trade any form of asset and control it in a decentralized manner using smart contracts and other cutting-edge technologies.

Developers at Ava Labs claim that Avalanche is the first smart contracts network to offer transaction finalization in under one second as standard.

Avalanche launched its mainnet in September 2020. The platform’s native token, AVAX, performs various tasks within Avalanche and also functions as a rewards and payment system for users.

AVAX, the native token to smart contracts platform Avalanche, hit an all-time high on Sunday, briefly making it one of the top 10 cryptocurrencies by market value. Now ranked No. 11, AVAX is up 33% in the last seven days, according to CoinGecko, and up over 3,000% in the last year.

This surge followed an announcement by Ava Labs, a team supporting development of the Avalanche blockchain, stating it formed a partnership with consulting firm Deloitte to improve security, speed and accuracy of Federal Emergency Management Agency (FEMA) funding. Deloitte will use the Avalanche blockchain to “build more efficient disaster-relief platforms.

When was Avalanche launched?

The Avalanche blockchain was launched in September 2020 by the Ava Labs team in the US. Ava Labs raised $6 million (US dollar) in their financing round and followed this with private and public token sales totaling $48,000,000. The three-person team behind Avax Labs consists of Kevin Sekniqi, Maofan “Ted” Yin, and Emin Gün Sirer.

How does Avalanche work?

To solve the problems outlined, Avalanche uses a combination of methods that make it somewhat unique. To begin, Avalanche is actually made up of three interoperable blockchains: the X-Chain, C-Chain, and P-Chain.

1. The Exchange Chain (X-Chain). This chain is used for creating and exchanging AVAX tokens and other digital assets. These assets have modifiable rules that govern their behavior, just like Ethereum’s token standards. Transaction fees are paid in AVAX, and the blockchain uses the Avalanche consensus protocol.
2. The Contract Chain (C-Chain). The C-Chain is where developers can create smart contracts for DApps. This chain implements an instance of the Ethereum Virtual Machine (EVM), allowing coders to fork over EVM-compatible DApps. It uses a modified version of the Avalanche consensus protocol called Snowman.
3. The Platform Chain (P-Chain). This chain coordinates network validators, tracks active subnets, and allows for the creation of new subnets. Subnets are sets of validators providing consensus for custom blockchains. A blockchain can be validated by only one subnet, but each subnet can validate multiple blockchains. The P-Chain also uses the Snowman consensus protocol.

With each blockchain taking on different roles, Avalanche improves speed and scalability compared to running all processes on just one chain. The developers have combined this aspect with two different consensus mechanisms tailored to the needs of each blockchain. Tying all of these blockchains together is Avalanche’s native utility token AVAX. Users need the token to stake and pay network fees, giving the ecosystem a common usable asset between different Avalanche subnets.

Avalanche may challenge Ethereum’s dominance

Avalanche calls itself the “fastest smart contracts platform in the blockchain industry.” Smart contracts are a blockchain-based technology that allows buyers and sellers to automatically input the terms of an agreement into self-executing contracts. Ethereum was crypto’s first smart contracts platform. Its coin is currently the world’s second-most valuable token behind Bitcoin with a valuation of nearly $500 billion. But Avalanche’s recent rise has some investors convinced that competitors are staging more formidable challenges to Ethereum’s dominance.

Where and How to Buy AVAX

The Avalanche token (AVAX) is available to purchase and trade on a wide variety of exchange platforms, including Binance, OKEx, Bitfinex, Huobi Global, CoinEx, Paribu, WazirX, OKCoin and Hotbit.

Here’s how to buy AVAX on Binance—currently the most liquid exchange for AVAX tokens.

Step 1: Create your Binance account and load your wallet with one of the trading pairs for AVAX. In this case, we’re using Tether (USDT).

Step 2: Once your deposit is confirmed, head over to the AVAX/USDT spot trading page.

Step 3: On the bottom of the trading page, you’ll find the order panels. Select the ‘Market’ tab.

Step 4: In the total field, enter the amount of USDT you’d like to spend on AVAX. Once you’re happy, click the ‘Buy AVAX’ button to execute your order at the best available price.

​Your AVAX will then be found in your exchange spot wallet, and will be free to trade, invest, or withdraw.

 

Conclusion

I hope you have gained all of the important information about AVAX including its features and highlights throughout this topic.If you have any questions about AVAX or want to know more about AVAX, please feel free to leave a comment below.

 

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