The Avalanche (AVAX) Blockchain: A Comprehensive Guide
Blockchain platforms have undergone dramatic changes, primarily due to the impact of Bitcoin. Many of them will point out that Bitcoin was almost certainly the first application of blockchain technology. The Bitcoin blockchain’s design served as a template for developing numerous subsequent cryptocurrencies. Even if the most prominent crypto players, such as Bitcoin and Ethereum, command a sizable market share, new competitors spark innovation and create unique value advantages. And hence, avalanche blockchain was created.
The Fundamental Reason for Developing Avalanche Blockchain
Before diving into an introduction to Avalanche blockchain, it’s critical to understand the platform’s underlying motivation. What specifically compelled the developers to create the new blockchain platform? First, blockchain networks’ conventional Proof of Work consensus mechanisms results in slow and expensive transactions. Additionally, the validation process in Proof of Work blockchain networks consumes a significant amount of resources, impeding decentralization.
Changing Times Require Adaptable Solutions
Simultaneously, these setbacks harm blockchain adoption, highlighting the critical need for scalable solutions. Following Bitcoin’s 2009 launch, technical limitations were irrelevant, especially given the small user base. Today, with the introduction of numerous crypto assets, we have a thriving blockchain and crypto landscape. The growth of NFTs and DeFi indicates how the blockchain landscape will continue to expand as more opportunities become available.
Before delving into “what is avalanche” and how it works, it’s necessary to understand the issues with conventional blockchain platforms. DeFi applications have gained widespread adoption, with almost $100 billion in assets being locked up in various DeFi protocols and services. For example, at the start of 2021, nearly 100 million people worldwide were reportedly using cryptocurrencies.
Avalanche Blockchain is the optimal solution to all of these issues!
Yes, you read that correctly! Avalanche emerged as a viable layer one protocol capable of achieving the desired decentralization, security, and scalability levels. It is essentially a blockchain platform with smart contract functionality, enabling faster transaction times while also lowering transaction costs. Most importantly, the Avalanche crypto platform aims to provide a more environmentally friendly alternative to Proof of Work-based blockchain networks. It entered the cryptocurrency landscape in 2020 and has quickly ascended the ranks of cryptocurrencies.
The protocol’s TVL, or Total Value Locked, is the platform’s most prominent feature. With nearly $3 billion in TVL spread across multiple dApps, the Avalanche blockchain has a sizable presence in the blockchain market. Ava Labs, the developers, have been able to garner the support of a passionate community, dedicated supporters, and investors, in addition to a competent team, to create the world’s fastest blockchain.