Avalanche chain

Avalanche chain

What is the Avalanche chain?

Avalanche is one of the largest blockchains which has been operating since September 2020 and quickly became a major rival of the Ethereum blockchain ever since. Avalanche chain became so large it has over 11 billion USD total value and continued to grow steadily in the crypto landscape. Avalanche has proved its claims on its unique motto, “Blazingly Fast Low Cost, & Eco-Friendly”, by boosting scaling capabilities and quick transactional throughput (4,500 transactions per second compared to 14 transactions per second of Ethereum).

Who is behind Avalanche crypto?

Avalanche is led by Ava Labs based in New York which was co-founded by Emin Gun Sirer, a Turkish-American computer science professor at Cornell University, Kevin Sekniqi, a Ph.D. student, and Maofan “Ted” Yin who is now the Chief Protocol Architect at Ava Labs.

How much can you earn by staking Avalanche?

Traders can earn up to 11% APY (Annual Percentage Yield) as claimed by Avalanche. For example, if you stake 100 AVAX (Avalanche’s native token) for one full year, you will get 111 AVAX back if you withdraw. However, the staking rewards change proportionally to the staking ratio which is not fixed. Currently in the pool, there are total stake of 265,535,601.27 AVAX which is composed of 230,913,867 AVAX validation stake and 34,621,734 AVAX delegated stake. The staking ratio is now standing at 64.16%.

Is AVAX good for the long term?

According to several authority sites, Avalanche price prediction is expected to grow further than its current value at 25.63 $ per AVAX. Since Avalanche is a young project which has a lot of capabilities, many predictors believe in its long-term potential. However, please note that these predictions are now always accurate. Even the most accurate prediction might fall far from reality in the face of a volatile crypto market. So traders are advised to do some research and make sure they have the advantages over the market unbiased

What is the difference between AVAX and AVAX C-chain?

There are some differences between AVAX C-chain, AVAX X-Chain, and AVAX P-Chain. AVAX C-Chain is used for smart contracts. In other words, the AVAX C-Chain is used in DeFi and can be added to Metamask. On the other hand, AVAX X-Chain cannot be used in DeFi and cannot be added in Metamask. Its sole purpose is to send/receive funds at the fixed transaction fee of 0.001 AVAX. Lastly, AVAX P-Chain is primarily used for staking AVAX. If you are a validator then you will receive rewards as AVAX P-Chain.

This is quite a unique token system of Avalanche. The tokens are separated functionally and serve different purposes. However, this is a bit tricky for newcomers to understand and can cause the loss of funds if sent to the wrong chain!

Is Avalanche an Ethereum killer?

Comparing Avalanche vs Ethereum, Avalanche has some attributes which surpass Ethereum in many ways. Firstly, the Ethereum gas fee is always fluctuating and charges 75x more than that of Avalanche. Although Ethereum has tried to fix and remedy the situation, it’s still not acceptable to many people. Secondly, Avalanche’s transactional throughput costs less time and is way higher than that of Ethereum. Finally, Avalanche offers more scaling capabilities with its eco-friendly protocol. More and more projects have been built on the Avalanche chain and the number is still growing. Although, in the end, time will tell whether Avalanche is an Ethereum killer or not but it sure has the potential to do so.