What is AVAX (Avalanche) Coin?
AVAX Coin is a freely exchangeable coin and the native token of the Avalanche network, which takes a unique approach in the emerging blockchain technology. Listed on many cryptocurrency platforms, AVAX has a limited supply of 720 million tokens. All fees paid in the Avalanche network are burned as a deflationary mechanism.
AVAX Coin has three uses:
- AVAX Coin allows you to stake to become a validator or delegate stake to a validator. As a validator, you can earn up to 11% annual returns. You can also delegate this return to those who support you up to a certain percentage.
- AVAX Coin contributes to interoperability by serving as the common unit of account for all subnets in blockchain technology.
- It also offers you the opportunity to pay all your transaction fees and subnet subscriptions with AVAX token.
Since it is often confusing, it should be underlined that AVAX Coin is a token created by Avalanche, a blockchain network.
When did Avalanche (AVAX) come out?
Aiming to improve scalability without compromising on decentralization, the Avalanche (AVAX) blockchain network was launched by Ava Labs in the US in September 2020. The main net of the Avalanche protocol was also made available on the same date.
Who created Avalanche (AVAX)?
Ava Labs, which built the Avalanche blockchain network, is a three-person team consisting of Prof. Dr. Emin Gün Sirer, Kevin Sekniqi and Maofan Ted Yin. Ava Labs received an investment of $6 million in its funding round, and then increased this figure to $48 million with both private and public AVAX token sales.
How does the Avalanche (AVAX) Network operate? How does it differ from its counterparts?
The concepts of scalability, interoperability and usability have come to the fore with blockchain technology. Among the technologies developed to address the issues in these concepts, the Avalanche (AVAX) network platform comes into prominence with its unique structure that uses three separate blockchains. Thanks to this, the Avalanche network differs from other blockchains and scalable platforms in many ways.
The main difference of Avalanche from other platforms is its DAG-optimized consensus mechanism. With this new consensus mechanism that affects the transaction speed, the network can perform 50,000 transactions per second. Thus, transactions performed on the Avalanche network can be completed in less than 1 second.
Another feature that distinguishes the Avalanche network from others is that it has a large number of validators as well as having low requirements. This aspect shows the importance the Avalanche network attaches to decentralization.
Another important feature that makes the Avalanche (AVAX) network different from other blockchain technologies is that it has an unlimited number of interoperable blockchains. Operating with a low subscription fee, Avalanche is among the leading projects that offer private and interoperable blockchains.
The Avalanche (AVAX) network features a combination of several methods for solving scalability, interoperability, and usability issues. The network consists of three interoperable blockchains: X-Chain, C-Chain and P-Chain:
Exchange Chain (X-Chain)
It is the chain used to trade and create AVAX tokens and all other digital assets. The rules that govern the behavior of assets in the X-Chain can be modified. The Avalanche consensus protocol is used and payments are made with AVAX token in the chain.
Contract Chain (C-Chain)
Developers involved in the blockchain can create smart contracts thanks to this chain. C-Chain incorporates an instance of the Ethereum Virtual Machine (EVM), giving coders the opportunity to fork EVM-compatible DApps. This chain implements Snowman, which is an Avalanche consensus protocol.
Platform Chain (P-Chain)
It is the chain in which the network validators are coordinated. P-Chain contributes to the creation of new subnets by following the active subnets. Subnets act as validator groups with the capacity to offer consensus for private blockchains. Like C-Chain, this chain uses the Snowman consensus protocol.
Thanks to the different roles played by all three blockchains, all transactions performed on the Avalanche network are faster and highly scalable. This feature is formed with the Avalanche and Snowman consensus protocols.
And AVAX, the native token of the Avalanche network, unifies all these blockchains. Users utilize AVAX token for staking and paying network fees, creating a common asset that is usable across different Avalanche subnets.
How to buy Avalanche (AVAX)
Growing in popularity each day, AVAX token is highly demanded by cryptocurrency enthusiasts. AVAX token is used for investment purposes as well as secure transfers. You can easily perform your Avalanche (AVAX) transactions on Felixo Exchange as well as the world’s leading stock exchanges.
How to store Avalanche (AVAX)
You can create an AVAX wallet to store and use your AVAX token. With the AVAX wallet, you can see your balance and perform transfers to other AVAX wallets via the AVAX blockchain.
Since the AVAX wallet is a type of software that contains private and public keys, your wallet has a digital address that consists of 26-35 characters including letters and numbers. While you can transfer AVAX tokens from other wallets to your own wallet with the public key of your wallet, you can use the private key code when you want to make a transfer to another AVAX wallet.
If you want to convert AVAX tokens in your AVAX wallet balance to other units, you can easily do this via Felixo Exchange.
How to earn Avalanche (AVAX)
Earning AVAX is only possible by staking, as AVAX mining is not possible yet. If you want to earn AVAX as an investor, you can get more AVAX by staking your AVAX tokens via Felixo Exchange.
How to stake Avalanche (AVAX)
Staking is one of the safest ways to make profits in the cryptocurrency market. As an AVAX holder, you can earn rewards by staking your tokens on the Avalanche network. You can do this either as a validator or by staking your AVAX tokens with a validator.
Since the hardware requirements you will need for validation are low enough to be suitable for many standard computers, you can earn income by staking AVAX like every investor.
Future of Avalanche (AVAX)
The future projections of the Avalanche (AVAX) network and its native token AVAX look promising. AVAX is expected to become more appealing in the future with its technology, security, focus on decentralization, and unique solutions it brings to customization and speed issues.
The Avalanche blockchain, which is particularly an alternative to Ethereum among the Decentralized Finance (DeFi) platforms, is considered a favorable option for investors in the cryptocurrency market as it is compatible with EVM and offers the opportunity to make transactions with low fees.
The Avalanche (AVAX) network, which has been enjoying a growing number of users since its launch, is expected to increase the number of its investors from now on thanks to its security mechanisms that will make cyber attacks almost impossible.
It is possible to notice the popularity of the Avalanche if you look at the use of AVAX tokens for investment purposes. As for the chart performance, you can observe that AVAX token has managed to keep a continuous uptrend, although it has fluctuated since its launch. Ava Labs also continues to maintain the security of the Avalanche (AVAX) platform and gain the trust of investors by continuously improving the Avalanche blockchain network with new updates.