AVAX is one of the cryptocurrencies experiencing robust and stable growth, making it a worthy candidate for long-term investment due to its highly-regarded development model and platform. So what exactly is AVAX coin and what potential does it hold? To gain a better understanding of AVAX coin, let’s delve into the details of the Avalanche (AVAX) project below.
Contents
- 1 What is AVAX Coin, and should you invest in it?
- 1.1 What is Avalanche?
- 1.2 Who is the Founding Team of Avalanche (AVAX)?
- 1.3 How Does Avalanche (AVAX) Work?
- 1.4 Key Features of Avalanche – What is AVAX coin?
- 1.5 What is AVAX Coin?
- 1.6 How Many AVAX Coins Are There in Total?
- 1.7 What are the Uses of AVAX Coin?
- 1.8 Should You Invest in AVAX Coin?
- 1.9 Where to Buy AVAX Coin?
What is AVAX Coin, and should you invest in it?
What is Avalanche?
Before exploring what AVAX coin is, let’s first learn about the platform that created it – Avalanche.
Avalanche is a blockchain platform designed as an open-source and programmable system, aimed at enabling users to build decentralized applications (dApps).
Avalanche promises extremely large-scale scalability and ultra-fast transaction speeds, capable of exceeding 4,500 transactions per second.
Blockchain enthusiasts will recognize that Avalanche is similar to Ethereum as it is an open-source blockchain platform that allows anyone to write and deploy smart contracts as well as build decentralized applications.
The operators and developers at Ava Labs have shared that Avalanche will be the first smart contract to have ‘super fast’ transaction speeds with completion times of less than a second. The Avalanche project launched its Blockchain network in September 2020, and its official token is known as AVAX. This currency is widely used within the Avalanche system and is utilized as a payment system or as rewards for investors.
Who is the Founding Team of Avalanche (AVAX)?
Avalanche and the Ava Labs development team were founded by a trio of computer scientists, including:
- Emin Gun Sirer: a veteran computer scientist with a long history in Bitcoin, decentralized networks, and blockchain. He received his Ph.D. in Computer Science in 2000 and has been a professor at Cornell University since 2001. He is also a key member of IC3.
- Kevin Sekniqi: the COO at Ava Labs, also a professor at Cornell and a former member of IC3. Before joining Ava Labs, Sekniqi was a researcher at NASA’s Jet Propulsion Laboratory and various universities. He also worked with Microsoft as a Software Engineer. In 2020, he received his Ph.D. in Computer Science from Cornell University.
- Maofan “Ted” Yin: a doctoral student under Dr. Sirer and the Chief Architect at Ava Labs. He is set to receive his Ph.D. in Computer Science from Cornell University in 2021.
How Does Avalanche (AVAX) Work?
Unlike other coins like BTC, ETH, etc., which are built and developed on a Blockchain platform with the Proof of Work protocol of the SHA256 algorithm, these transactions consume a lot of electrical energy and computing power. They are also limited in terms of scalability.
However, Avalanche uses the consensus algorithm Proof of Stake with the Snow protocol, and this protocol is based on Gossip Algorithms. Importantly, this protocol has overcome the weaknesses of traditional consensus algorithms and previous Nakamoto algorithms.
Avalanche integrates 3 pre-built Blockchains: the X-Chain for exchange, the foundational P-Chain, and finally the C-Chain for smart contracts. These Blockchains are highly secure, safeguarded by the Primary Network. Specifically:
- C-Chain: Operates like a decentralized platform and enables digital smart asset transactions, representing real-world resources such as equity, bonds, etc., with rules governing its behavior like: Non-tradable until tomorrow, can only be sent to U.S. citizens, and so on.
- P-Chain: This is a metadata chain operating on Avalanche, tasked with coordinating validators and monitoring subnetworks, as well as allowing the creation of new subnetworks.
- C-Chain: Responsible for creating smart contracts using the C-Chain’s API. An example is the Ethereum Virtual Machine provided by Avalanche.
Key Features of Avalanche – What is AVAX coin?
For the Avalanche ecosystem, its technology is the most outstanding feature, including:
-
Fast processing speed, with Avalanche transactions measured in seconds.
-
Scalability with thousands of transactions per second without reducing performance.
-
Ensures high security and safety.
-
Supports smart contracts created and used by Solidity along with many other tools like Remix, Metamask, Truffle, etc.
-
Users can easily create both public and private Blockchains.
-
Designed to serve the financial market, transactions are conducted easily.
What is AVAX Coin?
AVAX Coin is the utility token of the Avalanche platform, or simply the official cryptocurrency of the Avalanche project widely used in its ecosystem. The role of AVAX coin is to pay for transactional activities, provide products, services, and using AVAX also ensures high security when operating on Avalanche.
Today’s Price of AVAX Coin:
AVAX/USDHow Many AVAX Coins Are There in Total?
AVAX has a maximum supply limit of 720,000,000 (720 million) tokens.
The remaining half will be released according to the schedule detailed in Avalanche’s whitepaper. Note that the release rate of AVAX can be changed by community decision. However, it’s important to note that the maximum supply cannot be changed; the community can only decide how quickly or slowly the maximum supply of AVAX is reached.
Currently, there are 413,959,465 AVAX coins in circulation, and they are allocated as follows:
- Staking Reward: 50%.
- Team: 10%.
- Public Sale: 10%.
- Foundation: 9.26%.
- Community & Developer Endowment: 7%.
- Strategic Partners: 5%.
- Private Sale: 3.46%.
- Seed Sale: 2.5%.
- Airdrop: 2.5%.
AVAX Token Release Schedule:
Details about the Token Sale are as follows:
- Seed Sale ($0.33/AVAX – 18,000,000 AVAX) vesting period of 1 year.
- Private Sale ($0.5/AVAX – 24,900,000 AVAX) vesting period of 1 year.
Public Sale has 3 options:
- Public Sale Option A1: ($0.5/AVAX -12,000,000 AVAX) vesting period of 1 year.
- Public Sale Option A2: ($0.5/AVAX – 60,000,000 AVAX) vesting period of 1.5 years.
- Public Sale Option B (shared pool with option A1): ($0.85/AVAX) fully unlocked.
What are the Uses of AVAX Coin?
AVAX coin was created for two main purposes:
- Fees: All activities deployed on Avalanche’s subnets require payment of fees in AVAX.
- Staking: To become a Validator or block creator in Avalanche or any of its Subnets, a minimum of 2,000 AVAX is required.
Note: The total maximum supply of AVAX is ~720,000,000, of which the Mainnet provides over ~360,000,000. This number will continue to increase as the system mines towards the total supply.
In addition, AVAX coins used to pay fees are burned (destroyed) by the system to create scarcity over time and ensure an increase in value.
Should You Invest in AVAX Coin?
First, to assess whether AVAX Coin is a viable investment option, let me share some of the most notable points about the Avalanche (AVAX) project to give you a clearer picture of it.
Avalanche is considered the best and most suitable blockchain 3.0 platform to be a competitor or successor to Ethereum. In my personal opinion, it is better than Cardano, Polkadot, Cosmos, Solana, Near, and even better than Ethereum because:
- Avalanche has high throughput, capable of processing transactions in less than a second without sacrificing decentralization or security. These features not only make it a great DeFi platform but also an excellent payment platform.
- The supply of AVAX tokens is fixed, making AVAX coins increasingly scarce, so they will not lose value in the future. Additionally, burning AVAX coins in each transaction will gradually reduce the supply, driving up the price of AVAX.
- Avalanche is increasingly achieving its goal of creating an ideal secure platform for building DeFi applications and is also suitable for the traditional financial market, easily accessible to many businesses.
However, Avalanche also faces some downsides, such as relatively high and unpredictable transaction fees; particularly, the coin distribution is still too centralized…
Overall, Avalanche (AVAX) is a very promising project in the long term. If it continues to improve in the future and works to overcome some of its current weaknesses, it will likely become even more popular.
If you believe in the development of Defi networks in the future and want to invest in a Layer-1 blockchain platform, Avalanche could be a great long-term investment for you.
If you’re looking to earn high profits quickly or want to see rapid returns, Avalanche (AVAX) might not be the best investment for you.=> But whatever you decide, remember that the cryptocurrency market is full of risks and can plummet in value, so if you invest, do so with a small amount of capital, not exceeding 5%.
Where to Buy AVAX Coin?
AVAX Coin is listed on many large and small exchanges, especially major international exchanges like Binance, Huobi, OKEx, etc. Therefore, if you want to buy, sell, or trade AVAX, choose these reputable exchanges to minimize the risk of scams.
With the information and knowledge shared here, I hope it will help you understand the Avalanche project and what is AVAX Coin, so you can plan a safer and more effective investment. And don’t forget, the virtual currency market is fraught with high risks, so always have a perfect plan before investing. I wish you success!
