Avalanche (Avalanche), is a blockchain network type platform that has the ability Smart contracts (Smart Contracts) supports. native token or exclusive digital currency of this platform, Avax It is called and helps to strengthen this blockchain. When the Avalanche white paper was published, the main goal of this platform was revealed to be a host of solutions designed to decentralize, strengthen security, reduce costs, increase transaction speed, and be environmentally friendly in blockchain networks. With a Total Locked Value (TVL) of approximately $41.8 billion, Avalanche is among the most popular in the cryptocurrency world; But what is Avalanche and what are its characteristics?
Avalanche allows its users to create their own token blockchain networks at the desired fees. In this article, we want to go into the details of the Avalanche white paper and review its capabilities and features. To discover the secret of the success of this platform, which was launched in 2020, we must first know what Avalanche is and how its platform works.
The emergence of Avalanche (AVAX) and the conquest of the peaks of success
Avalanche was introduced to the cryptocurrency world in September 2020 by a working group called Ava Labs. After the Avalanche white paper was published, a team consisting of Kevin Sekniqi, Maofan “Ted” Yin, and Emin Gun took over its management and announced its headquarters in New York. they did Avalanche was originally known as an interplanetary file system (IPFS) It was known that in May 2018, it was made sense by a group known as Team Rocket.
Later and with the passage of time, a team from Cornell University took over the responsibility of directing and developing the initial Avalanche project. The story of this project as providing a platform open source (open source) And to boot Decentralized applications (Dapps) Began. Since Avalanche provided a more convenient and scalable platform for building and launching DApps, it received considerable attention. The AVAX system relies on the proof-of-stake consensus mechanism.PoS) Works. The initial coin offering ended on January 15, 2020 with a value of $42 million, and its native token was introduced in September of the same year. The management team and founder of the project raised $230 million through the sale of AVAX tokens one year after the IPO.
Overview of the Avalanche White Paper: What are the details of the AVAX white paper?
The Avalanche White Paper is basically a very detailed and planned roadmap that targets key and important areas such as engineering, ecosystem development and security enhancement. The white paper is presented in order to improve the blockchain environment. By presenting this white paper, the founding team intends to create an amazing user experience and develop the features and functionality of the platform. The goals mentioned in the Avalanche white paper are:
Better user experience than wallet
One of the goals is to make positive changes to the Avalanche wallet structure to make the AVAX token more accessible to new users. Also, the features and security features of this wallet have been improved and things like the user interface have been improved. According to Avalanche’s white paper, a specialized wallet application is to be provided.
Novel Bridge technology
Users of the Avalanche world usually faced difficulties in transferring their digital assets due to the fees associated with the Avalanche-Ethereum Bridge (AEB). The developers decided to provide a new and secure bridge to solve this problem. This bridge, called Novel Bridge, is the first in the cryptocurrency industry and is 2x faster and 5x cheaper than AEB. In addition, by using this bridge, you can use more applications and connect to other blockchain networks.
Apricot upgrade
According to Avalanche’s white paper, the developers plan to improve and complete Apricot’s functionality in the next stages. With this upgrade, dynamic fees for smart contract transactions in the C chain, added governance in the P chain, and optimization towards network scalability are formed.
Blueberry upgrade
Blueberry Upgrade is provided to upgrade the encryption system on the platform. This upgrade helps to create independent blockchains with their own virtual machines and rules. This upgrade is a big step towards fully controlling the development of the ecosystem and creating more value for AVAX digital currency.
C-Chain support
Developers are trying to support C-Chain more and users can transfer from their accounts to DeFi applications on Avalanche without cross-chain transfers. Also, introducing new features such as Chainlink, providing launchpads such as Avalaunch, etc. are also included in this goal.
Autopsy of Avalanche: What is going on in the structure of this platform?
The summary of the Avalanche white paper is as follows: “The Avalanche blockchain is composed of several partial blockchain networks. To build robustness, increase scalability and decentralize the consensus of Nakamoto (Nakamoto consensus), strengthening the speed of transactions and the efficiency of the classical consensus algorithm (Classical consensus) from Avalanche consensus (Avalanche consensus) is used”.
Each chain of the Avalanche blockchain network includes a separate virtual machine, while also supporting several other options such as Ethereum Virtual Machine (EVM) and WASM. Finally, the mechanism of the Avalanche platform allows chains to absorb and implement the functions they want.
The main components of the Avalanche network are:
Subnets
are a dynamic and active set of validators that work together to reach a consensus on the state of the blockchain network. Each blockchain in the Avalanche world is verified by a subnet. With all these features, a subnet can confirm more than one blockchain, and a node can be a member of more than one subnet.
chains
The Avalanche blockchain network has three blockchains; Chain P, Chain X and Chain C. Each chain is considered as part of a subnet.
X chain
This chain is always referred to as exchange chain. This chain acts like a decentralized network and is specifically built to create, launch, manage and amplify transactions. One of the digital assets that can be traded on this chain is AVAX.
C chain
This chain is called contract chain or Contract Chain It is also known and as its name suggests, it is used exclusively for smart contracts. This chain is a successful example of the Ethereum Virtual Machine (EVM) system, powered by Avalanche. There are no more details about this chain in Avalanche’s whitepaper, but it is clear that this chain allows for DApps to be copied from Ethereum. This feature allows developers to easily migrate their projects from Ethereum to Avalanche.
P chain
Platform chain or Platform chain Another title is this chain. This chain is used to manage subnets, coordinate between validators and strengthen the digital currency staking mechanism. One of the important applications of this chain is the implementation of the Snowman consensus protocol, which has an extraordinary operational capacity.
Four outstanding benefits of the Avalanche ecosystem
The Avalanche network has distinctive features, which we will examine in the following four important indicators.
Extensive interaction and collaboration
This network has significant interoperability. The ability to interact and collaborate is one of the most critical features of a network for business and communication with other platforms. According to Avalanche’s white paper, the creation of different and numerous subnets in the network has increased the efficiency of this platform and made it possible for the DeFi environment and related applications to become more practical.
Low probability of network attack
Compared to powerful blockchain networks such as Bitcoin and Ethereum, the possibility and probability of an attack on the Avalanche network is very low. For example, the probability of an attack on the Bitcoin network, which operates with the PoW algorithm, is about 51%. Meanwhile, a hacker in Avalanche must control about 80% of the entire network in order to successfully attack its structure and subnets. This important advantage is due to the Avalanche consensus protocol, which provides the security of this network alone.
Fast transactions
According to Avalanche’s white paper details, this network is capable of launching 4,500 transactions per second. Meanwhile, the speed of transactions in Bitcoin and Ethereum is equal to 7 transactions and 15 transactions per second, respectively.
Prevent the price of digital currency from falling
According to Avalanche’s white paper, the transaction rate and operational capacity of this network are very high, and this issue makes it possible for the price of digital currency to decrease. Also, thanks to this advantage, the user can have an experience similar to centralized exchanges in a decentralized digital currency exchange. Also, due to the low amount of transaction fees on Avalanche, this platform can be considered as a cost-effective environment for small cryptocurrency transactions.
Acquaintance with Avalanche Technomic World: Introducing Avax Cryptocurrency
Avalanche’s native and exclusive token is called Avax and its total supply is equal to 720 million tokens. Having said that, the AVAX token is considered a type of cryptocurrency with low inflation; Because access to it is limited. In addition to being used in digital currency transactions, AVAX tokens are also used to implement governance in the network ecosystem; Because by keeping these tokens, you can get the right to vote in Avalanche and participate in the important decisions of this network.
Fees for cryptocurrency transactions on the platform are exactly the same as on the Ethereum network. Validators also use AVAX tokens to secure the network and receive rewards for sharing these tokens. Out of the 720 million AVAX tokens, 360 million tokens exist in the Genesis Block and the rest will be released over time and in the future.
The highest price of AVAX token was recorded on November 2021. This historic event happened because of Avalanche’s collaboration with Deloitte to build and launch efficient disaster relief platforms. Currently, in early December 2022, the AVAX token is ranked 15th in the cryptocurrency world and its market value is estimated at $6.90 billion. The following chart from the TradingView website shows the ups and downs of the AVAX token from 2021 to September 2022, with the aim of analyzing Avalanche’s future.
Avalanche and stealing the overtaking orb from Ethereum
In this article from the Wallex blog, you got to know the important parts of Avalanche’s white paper and learned the details about its performance. Avalanche enables developers working in its environment to build cross-platform applications. Also, according to its white paper, this network has the highest interaction rate and it is possible to launch interoperable blockchains. The most important goal of this network, which is also mentioned in the Avalanche white paper, is the decentralization of financial markets using a decentralized and transparent ecosystem that connects all blockchains in the world.
Avalanche is on the way of a big revolution in the world of blockchain networks and plans to change the space of DeFi applications. The capabilities of this project make it possible to reduce scalability problems and provide a better experience for users of DApps. All tools in Avalanche are compatible with the Ethereum virtual machine and bring flexibility, scalability and decentralized governance to users. What do you think about the Avalanche whitepaper and its details? Do you think it is possible to count on the computing power and interoperability of this network?
Written by Avalanche White Paper (AVAX); Everything about the AVAX white paper first appeared on the VALX blog. appeared.
