Increasing global interest in the field of decentralized finance (DeFi) has led to the creation of new projects and platforms. These are blockchain-based ecosystems that give users access to financial services without intermediaries. The developers of the Avalanche project are striving to create a platform that can solve the main problems of the blockchain — limited scalability and network congestion.
Although Ethereum programmers plan to solve the existing issues with an ETH 2.0 update, its launch has been repeatedly delayed and is not expected in the nearest future. The Avalanche development team put all their efforts into creating a fast and scalable platform. Our detailed review of the AVAX cryptocurrency will help determine if they managed to achieve their goals. What is Avalanche all about? Let’s try to find out!
Avalanche Meaning: Key Things to Know
Let’s start our review with the Avalanche meaning. The Avalanche System Consensus Protocol is a breakthrough in blockchain history. The technology allows the platform to be a secure, decentralized, and scalable network. Given good financial backing and a constant influx of projects joining the platform, the company has a good chance of overtaking competitors in the blockchain world.
The AVAX cryptocurrency ecosystem is diverse. It includes both NFT game platforms and projects offering DeFi products. Organizations such as SushiSwap, Pangolin, Polyient Games, GameSwap work with the ecosystem. At the same time, Avalanche continues to grow rapidly, increasing the number of users.
What Avalanche Is: Everything You Need to Know
Briefly, Avalanche definition is as follows: it is a new platform developed by Ava Labs that allows anyone to create their own multifunctional blockchains and decentralized applications (dApps).
The system is designed to eliminate some of the limitations of older platforms, including low transaction speed, centralization, and scalability. The project uses its own innovations to achieve these goals. First of all, they include a unique Avalanche consensus protocol, which shows low latency, high throughput, and resistance to hacker attacks.
The project creators take into account regulation by states and allow the development of transparent systems. Regulatory authorities will be able to receive information about the availability of licenses or, for example, some personal data of users.
Avalanche Definition: Main AVAX Characteristics
What is Avalanche? The cryptocurrency communities mention that AVAX is a copy of Ethereum. Yes, the systems are similar in many ways, but the Ethereum competitor has unique features. Thus, the characteristics of the Avalanche project are the following:
- High scalability. Blockchain and all projects hosted on it work on the Proof-of-Stake algorithm. According to the developers, the network is capable of verifying thousands of transactions per second. And a large number of validators ensures the network’s operation, speed, and security.
- Compatibility. The blockchain can interact both within the subnet and between them. This allows cross-chain value transfer to be supported. Subnets, in turn, complement each other.
- Inclusion. Many Proof-of-Stake (PoS) blockchains allow only a select number of validators to participate in reaching consensus, while Avalanche allows anyone who stakes at least 2,000 AVAX.
- Slashing exception. Users will not see a bid penalized if their node misbehaves or is out of order.
AVAX Transaction Speed
According to Avalanche definition, it is the first platform capable of completing a transaction in less than 1 second. It is capable of processing large amounts of data while maintaining low fees. The system can carry out 4,500 transactions per second (TPS), according to the developers. For comparison, the Bitcoin blockchain’s speed is 7 TPS, while Ethereum has 14 TPS. This indicator makes it more suitable for mass scaling of decentralized applications.
An important fact is that the security guarantees are well above the standard 51%. The Avalanche coin (AVAX) remains reliable even if 60% of the network is infected with viruses.
Avalanche (AVAX) Distinguishing Features
Once we’ve learned Avalanche definition, let’s move further! The token’s fee structure has several features that make it stand out from other existing projects:
- Staking fees. While other protocols pay all rewards to an elected leader (for example, Bitcoin), Avalanche simply burns the fees.
- Transaction costs. The fees depend on the type of operation.
- Moving price function. As network congestion grows, the fee increases. After a certain period, the function is recalculated to take into account the natural increase in the volume of transactions in the system.
- Transaction levels. Unlike the Ethereum model, where each operation pays for a certain gas, Avalanche adopts a different system that includes 2 types of processing mechanisms.
Thus, the project can definitely be called promising. However, in many ways, its success depends on the actions of its main competitor, Ethereum, and on the latter’s switch to version 2.0.
Avalanche (AVAX) Price Prediction
The price of AVAX remained stable from late 2020 to early 2021. Influenced by the news about the possible launch of the Avalanche-Ethereum bridge in January 2021, the price quickly rose from $4 to $13. After a short delay, the functionality went live on February 9, 2021, which led to an increase in rates by more than 300% — to a historical maximum of $55.
A few days later, the coin’s value decreased sharply, possibly due to reports of an invalid mining error that occurred on February 11, 2021. Then the price moved into a sideways trend, and the coin was trading between $21 and $38 within 3 months.
In May 2021, the value fell to $13 after various negative headlines related to new cryptocurrency regulations in China and the suspension of bitcoin payments by Tesla. The negative news affected the cryptocurrency market as a whole, causing prices to drop significantly.
What is Avalanche price prediction? The Walletinvestor program predicts the long-term growth of the coin using technical analysis. Experts state this is a currency with a potentially good return and a profitable investment option. Based on Walletinvestor’s analytical forecasts, long-term growth is expected, with a July 2026 price prediction of $143.96.
How to Buy Avalanche (AVAX) Crypto at Switchere?
If you’re wondering where to buy Avalanche tokens, you should definitely think about buying them at Switchere. On our platform, you have an opportunity to buy AVAX in the fastest and most convenient ways. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.
At Switchere, you can buy crypto for fiat money or swap crypto for crypto. In addition to traditional purchases with a bank card, you can use alternative payment methods available (SEPA, SOFORT, M-Pesa, Asian local banks)
Here is an easy step-by-step guide on buying AVAX at Switchere!
- Visit our website and log in to your account.
- Choose the currency pair for exchange as well as a payment method and enter the amount. Don’t forget to check the transaction details by clicking on ‘Details.’ Once you’ve done, click the ‘Buy’ button.
- Specify your Avalanche wallet address and click on the ‘Buy’ button.
- Enter your card details and click on the ‘Pay Now’ button. Please take into account that you have a limited amount of time to send your funds. Elsewise, the transaction will be canceled automatically.
- Once you send the funds and your transaction receives the required number of blockchain confirmations, the amount of purchased AVAX will be sent to your provided wallet address accordingly.
- Congratulations! The transaction is completed, and now you can check your Avalanche wallet.
Usually, Switchere transactions take 5-30 minutes. If you have any troubles with the exchange process, let us know at [email protected]
Today, we’ve considered the Avalanche meaning and its main features to know. It is unlikely that the price will return to its high in the near future. Therefore, maybe right now is the right time to buy an AVAX coin. The project’s potential as a long-term blockchain platform has a positive effect on investments in this currency, and the growth of the asset from February to May 2021 was impressive.
What is Avalanche meaning? What other interesting facts do you know? Feel free to share your knowledge in the comments below!