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Everything You Need To Know About Avalanche 

Many cryptocurrencies have grown in popularity recently. So, what makes Avalanche special? Unlike other options on the market, Avalanche focuses on being a contract-capable innovative blockchain platform centered on reducing costs, increasing transaction speeds, and even being environmentally friendly. Here is a detailed guide on the basics of Avalanche, including what it is, where it started, and the personal implications of investing in it.

What Is Avalanche?

It is vital to consider the goal behind its creation to understand Avalanche. Avalanche’s design delivers a scalable blockchain without sacrificing its security or decentralization. This means that the creators of this blockchain wanted to eliminate slow speeds and maintain its ability to grow while keeping the network dispersed.

A blockchain is a type of digitally distributed ledger. Using a database distributed across a computer network, this ledger stores information on records of transactions, and this forms the building blocks of a cryptocurrency.

Over time, these databases accumulate a lot of encrypted data. Due to the complexity and distribution of this data, blockchains are usually slow. Thus, transactions take longer to process than other payment systems such as debit cards. Although the cumbersome and slow nature of blockchains became widely accepted, the creators of Avalanche decided to challenge it.

Avalanche has created a blockchain network that has strong safety guarantees using its unique consensus protocol. This move eliminates the slow processes of traditional blockchains and enables the quickest processing and finality in the blockchain industry. As a result, the Avalanche blockchain allows its users to have a high transaction throughput while remaining decentralized.

Who Created Avalanche?

AvaLabs created the Avalanche network in 2018. Emin Gün Sirer, Kevin Sekniqi, Ted Yin founded AvaLabs. Avalanche started as a protocol designed to solve the issue of consensus within a network of machines considered unreliable. The team that created this protocol was a group of enthusiasts. The protocol they made was first shared in 2018 and then taken on for further development by a team of researchers at Cornell University. This research team later became the founding team of AvaLabs. From their research, the team created a startup technology company that could create a blockchain network tailored to the finance industry that could handle its complex structure while using the consensus protocol to make the processes faster while maintaining a dispersed architecture.

Thus, the team could use consensus protocols for proof-of-work functions and secure transactions in the blockchain in a more time and energy-efficient way than before.

When was Avalanche launched?

Avalanche had its launch onto the mainnet in September 2020, and in the same year, the AVA codebase for the consensus protocol became available to the public as open-source code.

How Does Avalanche Work?

Avalanche uses its native tokens called AVAX. The AVAX is a scarce and hard-capped asst that is used to pay fees. It is also used to secure the platform through staking. Lastly, the AVAX provides a basic unit of account between the various subnets created on Avalanche.

Using the AVAX token as a medium of exchange, individuals can trade in Avalanche cryptocurrency. Another way to use AVAX is to get rewarded as a staker with more units of this currency. Compounding staking value is the mechanism used to prevent inflation in the Avax currency. Thus, tokens used for transaction fees are removed from supply to lower the amount in circulation.

How Can You Keep Your Avalanche Safe?

Avalanche uses proof-of-stake to secure its currency, which is safer than proof-of-work, which is a common means of security among other blockchains. Thus, Avalanche’s systems are safer than many other cryptocurrencies. Nevertheless, there are various ways to practice safe use of your cryptocurrency on a personal level. The first line of defense is generally following basic cybersecurity practices. Thus, change your passwords regularly, use a secure internet connection, diversify your portfolio by using multiple wallets, and use cold wallets that do not have a constant internet connection.

Is Avalanche A Good Investment?

In the past year, Avalanche has shown a tremendous increase in value. Analysts predict an increase in value for the next few years, making Avalanche a good investment. Forbes researchers state that Avalanche and other cryptocurrencies are riskier investments due to high price volatility. However, their value has demonstrated steady growth over the years, and predictions show continued upward trends.

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