Ever since Avalanche launched its mainnet in September 2020, it has seen significant growth in value mainly because of its tokens’ stability. In addition to running their blockchain, the decentralized platform also supports the accumulation of cryptocurrencies and other blockchain protocols on its network. It is because of these features that a lot of crypto traders look at Avalanche as an alternative to Ethereum.
Avalanche is an open-source platform and the first decentralized smart contracts platform that was designed “for the scale of global finance”. Avalanche operates as a relatively new protocol that can confirm transactions in less than a second under a proof of stake system.
Another method, known as proof of work, or PoW, is what is used to power well-known cryptos such as Bitcoin. However, many consider proof of work to not be viable in the long run, especially because of its energy inefficiency and the environmental issues that can be caused as it requires strong computing power. Apart from higher energy efficiency, the Proof of Stake method also ensures that blockchains are secure.
Avalanche, or AVAX, is a native token on the Avalanche platform with the main use case of incentivizing its holders. As such, it is used for staking thus earning passive income and paying fees in the AVAX network. Moreover, there’s a rewarding system for staking AVAX: the more and the longer you stake, the more your reward is.
The maximum supply of AVAX tokens was capped at 720 million tokens. The first block, also referred to as the genesis block, contained 360 million.The platform will release the remaining half but the rate at which new tokens will be released will also depend on how much AVAX is staked and on the emission curve as per the Avalanche whitepaper. It is worth noting that, unlike Bitcoin, community consensus can change the rate at which new AVAX tokens are released at any time. Another difference is that users can “burn” transaction fees of AVAX which helps increase the token's scarcity.
Avalanche was carefully designed to solve a number of issues found in many blockchain networks of today. The platform does away with centralization by offering a practical alternative to networks like Ethereum and deals with many other shortcomings of other decentralized networks with more programmability, features, and functionalities.
Avalanche uses a novel consensus protocol, which is designed and developed to confirm transactions in less than a second.
The platform is designed to be scalable and has the capacity to perform more than 4,500 transactions every second. No other existing blockchains can match this.
Avalanche also offers better security. The platform guarantees well above the 51% standard that other decentralized networks offer.
The platform enables users to create custom private and public blockchains and decentralized apps.
We have already discussed that Avalanche uses a proof of stake consensus algorithm, instead of proof of work, which is more energy-efficient and viable in the long term.
The platform also supports the deployment of Solidity smart contracts and well known Ethereum tools such as Truffle, Remix, Metamask, and more.
Avalanche allows users to create their own private or public blockchains.
The platform is designed to facilitate the trading of digital assets with complex, custom rulesets.
For those who are new to the trading industry, it is useful to know how to exchange the digital token AVAX on exchanges such as Binance, OKEx, and Huobi Global. There are a few things that you should keep in mind. First of all, learn how the exchange platform you have selected works and whether it supports AVAX.
Perhaps, the easiest way to get AVAX and trade the tokens is by opting for crypto exchange aggregators like Swapzone:
If you’re a visual learner and want to see how to convert crypto assets on Swapzone, watch one of our step-by-step video tutorials: