Avalanche — the fastest smart contract platform?
While looking for a proper technology in developing, for example the play to earn project, it can be a good choice to consider Avalanche.
While looking for a proper technology in developing, for example the play to earn project, it can be a good choice to consider Avalanche.
It is a serious rival for ethereum, but why?
Agenda:
- intro,
- what is it,
- how it works,
- pros,
- cons,
- conclusion.
What is it?
Avalanche is an open source blockchain, which main advantage is handling smart contracts. As a layer 1 solution, it is not build upon ethereum network. However, it has low fees and extremely high execution speed.
Native cryptocurrency of Avalanche network is AVAX. This coin is used to pay transaction fees and secure the network.
How it works?
Avalanche is supporting decentralized applications and autonomous blockchains.
What makes avalanche so special are:
- coin creation rate:
AVAX supply is very limited, it is estimated to set the limit of 720 millions tokens. However, AVAX holders can control the speed of distribution of new coins.
It is done by voting to adjust the amount of AVAX paid in rewards. It is a very unique solution, which can scale amount of users and provide real value in the network.
- transaction fee structure:
Fees are also handed over a voting process. However it can be different, according to network congestion and a type of transaction.
What is interesting, fees are totally burned — removed from a circulation. What decreased the total supply of AVAX.
- consensus mechanism:
Transactions on the Avalanche blockchain are approved by many small participants of the network, chooses randomly.
It provides a security differently from other proof of stake solutions. Nowadays, this kind of mechanism is functioning pretty well.
Pros:
- fast transactions per second rate,
- well organized reward structure,
- capability of supporting many blockchain projects.
Cons:
- avalanche validators have to gather 2000 tokens,
- “Malicious or careless validators are never penalized by losing their AVAX”
Conclusion
Avalanche blockchain is extremely efficient in proceeding transactions, it is about 4500 transactions per second rate. What makes it a perfect platform for developing smart contracts.
Simultaneously charging lower fees and providing good enough security structure, it can be super famous especially in play to earn trend.
However, after ethereum merge, the more powerful and recognizable rival can change everything in the market of fast smart contracts networks.
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