Binance freezes $4.2M in stolen XRP from Ripple exec's account, marking 2024's largest hack. How will this impact Ripple's security measures?
Learn more about Avalanche
Table of Content
Avalanche (AVAX) price has declined today.
Avalanche (AVAX) is priced at $33.62 today, with a 24-hour trading volume of $251,675,760.34. It is reflecting a 3.78% decline over the last 24 hours and a 12.32% decline over the past 7 days. With a circulating supply of 379 Million AVAX, Avalanche’s current market cap is at $12,731,983,713.49.
Introduction to Avalanche (AVAX)
Avalanche, also known as AVAX, is a layer-one blockchain that serves as a platform for decentralized applications and custom blockchain networks.
It strives to compete with Ethereum as a leading blockchain for smart contracts by offering a higher transaction output of up to 6,500 transactions per second without compromising scalability.
The Unique Architecture of Avalanche
Avalanche stands out with its unique architecture, consisting of three distinct blockchains:
- X-Chain
- C-Chain
- P-Chain
Each chain has its specific purpose, deviating from the approach taken by Bitcoin and Ethereum, where all nodes validate all transactions.
Moreover, each blockchain within Avalanche utilizes different consensus mechanisms based on its specific use cases.
Since its mainnet launch in 2020, Avalanche has focused on developing its own ecosystem of decentralized applications (DApps) and decentralized finance (DeFi) solutions.
Additionally, the platform is actively enhancing interoperability between its ecosystem and Ethereum by creating bridges.
The Founders
Avalanche was launched by Ava Labs, a company founded by Emin Gün Sirer, a distinguished professor at Cornell University, along with Kevin Sekniqi and Maofan “Ted” Yin, both holding PhDs in computer science from Cornell University.
Gün Sirer has extensive cryptographic research experience and was involved in Bitcoin scaling solutions and Ethereum research before the infamous DAO hack in 2016.
The research following this incident led to the publication of a whitepaper, eventually leading to Ava Labs’s establishment in 2018.
The project completed a seed funding round in February 2019. In 2020, Avalanche concluded its initial coin offering, raising $42 million in under 24 hours.
Key Features Setting Avalanche Apart
Avalanche aims to address the blockchain trilemma, which asserts that achieving a high degree of decentralization at scale is a significant challenge for blockchains. This challenge often results in high gas fees, as seen on the Ethereum network.
To overcome this obstacle, Avalanche employs three interoperable blockchains:
- The Exchange Chain (X-Chain): Facilitates creating and exchanging native AVAX tokens and other assets, adhering to standardized rules similar to the ERC-20 standard on Ethereum. It utilizes the Avalanche consensus mechanism.
- The Contract Chain (C-Chain): Hosts smart contracts and decentralized applications, equipped with its Avalanche Virtual Machine, similar to Ethereum Virtual Machine. This allows developers to fork Ethereum Virtual Machine-compatible DApps. The C-Chain employs the Snowman consensus mechanism.
- The Platform Chain (P-Chain): Coordinates network validators, tracks active subnets, and enables the creation of new subnets. Subnets are groups of validators resembling a validator cartel. Each subnet can validate multiple blockchains, while each blockchain can only be validated by one subnet. The P-Chain also operates using the Snowman consensus mechanism.
This division of tasks among the blockchains enables high throughput without compromising decentralization.
For instance, private blockchains within the Avalanche network can require their subnet’s validators to meet specific geographical decentralization requirements or comply with certain regulations.
Moreover, this modular structure enhances Avalanche’s interoperability with other blockchain networks seeking integration with the Avalanche ecosystem.
The distinct consensus mechanisms used by each blockchain further optimize their efficiency according to their specific requirements.
Avalanche (AVAX) Coin Supply
The total supply of AVAX coins is 720 million, and at the time of writing, the circulation supply is 354,157,796 AVAX.
The distribution of AVAX tokens is as follows:
Staking AVAX currently yields an annual reward of 11.57%, with a minimum staking period of two weeks and a requirement of at least 2,000 AVAX.
Security of the Avalanche Network
AVAX is traded on the Exchange Chain, which operates on the Avalanche consensus mechanism. Unlike proof-of-work or proof-of-stake, this mechanism does not rely on a single leader processing transactions validated by others.
Instead, all nodes simultaneously process and validate transactions using a directed acyclic graph (DAG) protocol. Validators randomly poll transactions to ensure their correctness with statistical certainty.
The absence of blocks in this consensus mechanism facilitates immediate finalization and significantly improves the speed of the blockchain.
Where to Buy Avalanche (AVAX)?
AVAX can be found on popular cryptocurrency exchanges such as:
More details
Binance is a great combination of low fees, deep liquidity and multiple cryptocurrencies and trading pairs. We have tested every aspect of it and it STILL holds its reign as the top exchange in the world. In our view, it is the perfect crypto exchange for both newbies and advanced traders alike.
-
Biggest exchange in the world.
-
Industry's lowest trading fees.
-
Advance trading options like leverage trading.
-
600+ crypto options, 150+ for the US.
-
Lucrative on-site staking options.
-
Hiccups in account verification.
-
Less regulated than some competitors.
-
The corporate structure is not transparently.
More details
Kucoin stands out among other crypto exchanges due to its impressive span of 1100 markets and 600 digital currencies. This, coupled with a user-friendly interface and secure investment environment, has made Kucoin an increasingly popular choice. However, US customers can not use the trading platform.
-
Ability to earn interest on crypto.
-
Low fees.
-
Good customer service.
-
Volume discounts on fees.
-
Features like margin and futures trading.
-
Not licensed in the U.S.
-
Lack of investment programs.
-
Low trading volume.
Coinweb’s Crypto Wiki can provide educational resources for those new to cryptocurrencies and interested in purchasing Avalanche.
Avalanche, or AVAX, is a digital platform for decentralized apps and custom blockchain networks. It allows a lot of transactions quickly and works to connect with Ethereum.
Avalanche has three special blockchains: X-Chain for creating and trading, C-Chain for smart contracts and apps, and P-Chain for managing network validators. Each one has a different purpose and way of reaching agreement on the network.
Avalanche was made by Ava Labs, started by Emin Gün Sirer and two others, aiming to solve problems of scale and cost in blockchains like Ethereum. They wanted a system that could handle many transactions without high fees and still keep decentralized.
There are a total of 720 million AVAX coins, and right now, 354,157,799 AVAX are in circulation. When you stake your AVAX, you can earn a yearly reward of 11.57%.
You can buy AVAX on crypto exchanges like Binance, Kucoin, Bitfinex, and Gate.io.