What is Avalanche (AVAX) coin? Is it worth the investment? AVAX Coin Price Prediction

Table of Contents

• What is Avalanche?
• 1. Introduction to Avalanche protocol
• 2. Development history of Avalanche
• 3. Avalanche protocol What are the functions of Avalanche?
• AVAX Advantage Analysis: The difference between Avalanche Chain and traditional blockchains such as Bitcoin
• Avalanche Operating Principle: Why is Avalanche called Avalanche Chain?
• 1. Avalanche consensus mechanism
• 2. Subnet
• 3. Built-in blockchain
• Avalanche’s NFT market
• What is the Avax coin?
• Introduction to the use of AVAX coins
• 1. Participate in governance and voting
• 2. Pay handling fees
• 3. Get rewards by staking tokens
• 4. Combine with multiple applications
• 5. Other investment methods
• AVAX Token Economics
• Can AVAX coins be mined? Mining tutorial
• 1. AVAX pledge mining: 2,000AVAX is required
• 2. AVAX liquidity mining: You can use Trading Joe
• AVAX coin price trend analysis
• 1. Historical price trend of AVAX coin
• AVAX coin price in 2024
• Avalanche future potential analysis
• Avalanche (AVAX) price trend prediction
• Disadvantages of Avalanche chain
• How to buy AVAX coins?
• Which exchanges are AVAX coins listed on?
• 1, Oyi
• 2, Binance
• 3, Huobi
• 4, Matcha
• 5, Biji
• Risk management of investing in AVAX currency contracts
• Conclusion

Since the emergence of Ethereum, many blockchain teams have begun to focus on the development and creation of public chain projects, and various public chain projects have emerged in endlessly. Among them, Avalanche has appeared in people's field of vision with super explosive power, and its token AVAX coin is rare in 2021. As of now, AVAX ranks 12th among all cryptocurrencies.

So, is Avalanche (AVAX) worth investing in? Can I buy it now? This article will give you a detailed introduction to what Avalanche is? How is it different from other protocols? What are the advantages of its AVAX token? And what is the future development? Let’s take a look!

What is Avalanche?

If you want to understand the AVAX coin, you need to first understand its blockchain Avalanche.

1. Introduction to Avalanche Protocol

Avalanche is also known as Avalanche Protocol and Avalanche Chain. It is a blockchain platform that aims to solve the scalability and scalability of blockchain with its unique Proof of Stake (PoS) mechanism. The security and decentralization trilemma.

Like Ethereum, Avalanche supports smart contracts to run decentralized applications (dApps) on its network. Since Avalanche's smart contracts are written in the Solidity language also used by Ethereum, it aims to create greater trustworthiness by integrating with many decentralized finance (DeFi) ecosystems, including mature projects such as Aave and Curve. Interoperable blockchains.

Additionally, Avalanche is an open source project, which means anyone can view and contribute to the platform’s code.

2. The development history of Avalanche

The Avalanche project was launched in 2018. At that time, Team Rocket (a pseudonymous software developer group) published an article detailing the foundation of the Avalanche protocol. Soon after, Emin Gün Sirer, Kevin Sekniqi, and Maofan Yin (Ted) founded AVA Labs with the goal of creating and developing the Avalanche blockchain.

Emin Gun Sirer is a professor at Cornell University in the United States and a well-known member of the Cryptocurrency and Contract Initiative (IC3). He is a well-known technical expert in the currency circle.

In 2003, he created Karma, a proof-of-work virtual currency for a peer-to-peer file sharing system that predated Bitcoin. In addition, he once predicted the DAO attack that shocked the currency circle at that time, and he can be said to be a veteran star in the currency circle.

In 2020, AVAX’s mainnet was officially launched.

Avalanche raised $42 million via ICO in July 2020 and has continued to attract significant investment since then. In July 2021, the Avalanche Foundation held a token sale that raised $230 million, with participants including large venture capital firms such as Polychain and Three Arrows Capital.

3. What are the functions of Avalanche?

Avalanche (AVAX) is a cryptocurrency and blockchain platform that competes with Ethereum and provides near-instant transaction finality.

According to reports, the Avalanche blockchain can provide very fast transaction finality, and it can handle 4,500 transactions per second.

Here are some unique features of Avalanche:

• Mining Speed: AVAX’s maximum supply is capped at 720 million tokens, but AVAX users control the minting speed of new coins. AVAX holders can control the rate at which new coins are created by voting to adjust the amount of AVAX paid out as a reward for adding new blocks to the Avalanche blockchain.
• Transaction fee structure: Transaction processing costs vary based on transaction type and Avalanche’s network congestion. All fees are burned (removed from circulation) to make AVAX more scarce over time. Avalanche users vote on Avalanche transaction fees, so AVAX fees are subject to change.
• Consensus Mechanism: Transactions on the Avalanche blockchain are confirmed using a unique method that requires many small, random subsets of network participants to confirm the transaction before it is considered final.
• Participation Incentives: High uptime and fast response times both increase the amount of AVAX rewards that network participants can earn by processing AVAX transactions.

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