Triaconta Weekly #177
The following topics will be addressed in this weekly.
- Bundle performance
- Wat is Avalanche (AVAX)?
Big 3: 1 Maand: +54% | 7D: +21.62% | 24H: +2.80%
Top 30: 1 Maand: +50.47% | 7D: +24.68% | 24H: +5.56%
Penny stock: 1 Maand: +75.59% | 7D : +34.02% | 24H: +4.88%
DeFi: 1 Maand: +45.06% | 7D: +20.43% | 24H: +6.23%
What is Avalanche (AVAX)
Avalanche is an umbrella platform for launching applications for decentralized finance (DeFi), financial assets, trading and other services. It aims to be the start of the “Internet of Finance” by connecting all blockchain platforms. It is also a global asset exchange, where anyone can launch or trade any kind of asset, including NFTs.
Ava Labs has developed Snow protocols that combine the robustness and decentralization of the Bitcoin blockchain with high throughput and low costs. How does that work? When a validator sees a transaction that needs to be checked for validity, it will randomly ask a small subset of other validators whether they think the transaction is valid or not. When a large part of the validators agree that the transaction is valid, the original validator will accept the transaction. This process only takes a few seconds. Only if there is a conflict with another transaction, a larger group of validators is needed to decide together what the valid transaction is.
Avalanche and the snow protocols work with connected subnetworks for every other blockchain and each subnet can choose its own way of rewarding validators. The P-chain manages the creation and validation of subnets. The C-chain creates the smart contracts, just like the Virtual Machine on the Ethereum network. Finally, the X-chain is the payment chain for smart digital assets and one of those assets is of course the native token AVAX.
Financial regulatory compliance is already built in, as Avalanche primarily wants a DeFi platform for the major financial smart contracts. A developer can use Avalanche to build applications that only work in specific countries, require users to pass KYC/AML checks, or require certain licenses. This is a blockchain platform ready for all real world legislation applied in digital blockchain apps.
Avalanche has everything it takes to become a very, very big one. It is an excellent DeFi platform with a revolutionary protocol in scalability, reliability and speed. The interoperability will generate high demand for the AVAX tokens and at the preliminary top of the Defi market the token was trading close to $50. Not bad for a token that sold for $0.50 at ICO in 2020. In the overall market correction in May, AVAX fell to €8 and is now trading above €11.
Avax tokens secure the Avalanche network, are used to launch new subnets, pay transaction fees, create and exchange new assets, manage protocol, and incentivize validators. The total supply is 720 million tokens of which half or 360 million have been released in the genesis block in 2020. It is important to note that the transaction costs (even though they are low) are not paid to the validators, but are burned, which increases the scarcity of the token. The token is designed to get a little bit more expensive with each use.