In previous blog articles, we’ve covered a broad view of cryptocurrency and offered a closer look at Bitcoin, Ethereum and several other altcoins.
👀 In this article, we’ll take a closer look at the Avalanche platform, along with its related AVAX cryptocurrency, and provide information on what it is and how it works. Here is our brief guide to get you on a clearer path to understanding.
🌰 AVALANCHE IN A NUTSHELL
👉Avalanche is a decentralized, open-source multi-chain platform. Its primary aim is to address common blockchain issues such as scalability, security and decentralization via its unique Proof of Stake (PoS) mechanism. Like Ethereum, it uses smart contracts📄 to support a variety of blockchain projects.
💰 AVAX is the native cryptocurrency token of the Avalanche blockchain. It is used to pay transaction processing fees, secure the Avalanche network, and act as a basic unit of account among blockchains in the Avalanche network.
📜 AVALANCHE HISTORY
Avalanche began as a consensus protocol for unreliable networks, and was first shared on the Interplanetary File System (IPFS) in May, 2018 by a pseudonymous group of enthusiasts known as “Team Rocket”🚀.
🎓Later developed by Cornell researchers led by Emin Gün Sirer and doctoral students Moafan “Ted” Yin and Kevin Sekniqi, a startup company was founded to create a finance-industry-ready blockchain network.
Launched in 2020, Avalanche’s primary aim is to be fast, versatile, secure, affordable, and accessible. The AVA codebase was released as open-source in 2020 and the native AVAX token was issued.
💲📈2021 saw the AVA Labs foundation receive $230 million in investment. Avalanche gained further in popularity after an agreement with Deloitte for improving disaster-relief funding, moving it into the top 10 cryptocurrencies by market capitalization in November of that year.
🦄 AVALANCHE’S UNIQUE FEATURES
Like Ethereum, Avalanche’s smart contracts platform supports web3 decentralized applications (dApps) and decentralized blockchains. However, the platform also possesses unique features which differentiates it, such as:
- 💱Transaction fee structure – The type of transaction as well as Avalanche’s network congestion determine its transaction processing costs.
- 💰Coin creation rate – The initial maximum supply of AVA tokens was capped at 720 million tokens. However, all fees are “burned”🔥, or removed from circulation, making the overall AVAX token more scarce over time. Both AVAX’s transaction fees and its minting rate for coin creation are determined using a governance model determined by AVAX users.
- 💎Participation incentives – Network participants who process AVAX transactions can earn boosted AVAX rewards for enabling high uptime and fast response times.
- 🖧Consensus mechanism – Avalanche blockchain transactions are confirmed via a unique method that requires many small, random subsets of network participants to confirm transactions before they are considered finalized.
✔️Further benefits of the Avalanche platform are its compatibility with Ethereum, its fast transaction processing times (4,500 transactions per second), its reward structure and its scaling capability to support many blockchain-based projects.
⚔️The challenges for the Avalanche network include stiff competition from platforms like Ethereum. There are also barriers such as requirements where AVAX validators must stake at least 2,000 AVAX tokens. Furthermore, malicious or careless validators are never penalized by losing their AVAX.
📊 AVAX TOKENOMICS
The finite supply of Avalanche’s AVAX coin totals just over 420 million AVAX. Currently, the total supply of AVAX in circulation amounts to just over 314 million AVAX. The current market capitalization of AVAX is approximately USD$6.22 billion.
💲 AVAX PRICE
When Avalanche initially launched in September, 2020, it had a minimal value that ranged between USD$3.44 and USD$13.18. After an initial price peak in early 2021 at USD$54.93, the AVAX price sank back down near to its early lows. With the bull run market in the latter half of 2021, the AVAX value reached an all time high price of USD$134.87 in November of that year. With a more subdued market in 2022, AVAX’s value dropped once again, bouncing between USD$10.87 and USD$29.12.
👉 EARNING AVAX WITH BLOOM
📲.The Bloom shopper rewards app allows you to earn AVAX and other crypto (like Bitcoin, Ethereum and a range of other altcoins) with every purchase made on your Visa card 💳.
🦉 All you need to do is download the Bloom app, register an account, link your Visa card and shop anywhere using your credit or debit card.
💰 With every purchase, you will earn Bloom Coins by simply using your Visa card💳. The more you use your card, the more Bloom Coins you will earn.
🎁 Bloom Coins can be redeemed for in-app rewards and converted into AVAX.
🆓 Converting crypto on Bloom, such as AVAX, is free of charge and has no gas fees!
💎 Earn exclusive 3x Bloom Coin rewards with a Premium Membership.
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Bloom does not recommend that any cryptocurrency or NFTs should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.