Avalanche is an exiting blockchain platform that focuses on three key uses: building blockchains for specific needs, building decentralized and scalable dapps and building complex digital assets. Through the combination of these three, it creates the opportunity for a unified platform based on digital assets. Sirer, the CEO of AvaLabs summarized his project into the sentence, "Ava allows for the creation and trading of digital assets, from new types of cryptocurrencies to claims on stocks and bonds". This is a project aimed at seriously disrupting the finance sector. If this is possible, the coin AVAX has incredible opportunity.

Quick Facts:

• 80% of the network must be taken hold of for it to be compromised
• It is highly inclusive, and token holder can vote
• There are thousands of nodes ensuring the systems integrity
• Anybody can create and launch an asset on Avalanche
• Able to mint non-fungible tokens for less than a cent

How does Avalanche work?

Avalanche is based on the Proof-of-Stake algorithm, allowing incredibly fast transaction finality of 2 seconds, along with 4500 transactions per second (TPS) according to their website. Best of all, the platform is compatible with Ethereum assets, giving them the opportunity to utilize this speed. This integration runs further, with Ethereum assets able to be transferred onto the Avalanche blockchain in a simple way, revolutionizing DeFi. It claims to be highly scalable with the chance for millions of users without any tradeoffs due to speed. Smart contracts are the foundation of the platforms security, but cost a fraction of what it does on Ethereum and traditional methods of payment, a leap forward in the contest against CeFi. 

There is no differentiation between any user on the network, making it incredibly inclusive and leaderless, important in making something decentralized. An interesting aspect of the platform is the fees. When there is a transaction, the fees owed to the validator is burned rather than getting given to them. The amount of coins available are capped, so this introduces a deflationary aspect of it. In essence, the fee is the decreased supply, which should reward the validator with capital gains rather than fees.

Creating assets

The asset creation on the Avalanche platform is interesting, with anybody able to create a blockchain that can be utilized for their specific needs. The high TPS makes it highly scalable too, vital for platforms that have high transaction volume. The issuing of the coins can be for a multitude of reasons, such as to claim ownership over a piece of precious art, or ownership of a stock. This is an interesting part of the project that can be utilized by anybody.

Ryval Market

Related to the above point, Rival Market is a part of Avalanche that claims to allow uses to purchase a part in a litigation with the prospect of returns of 50% annually. The purchase of the token goes towards funding the case. Although this is most likely an exaggerated claim, there is a high chance that the returns are quite good, being in an asset class with little competition. At the very least, it is an important DeFi development as it shows how through the use of cryptocurrency it is equalizing finance and leaving nothing sacred, improving everything that can and should be.

Opinion

Avalanche promises a lot, and there are signs of it delivering. Numerous developers have chosen it as the basis for their dapps, which is a promising sign and can lead to a compounding effect in popularity. It is definitely exciting, as if it works, there will be far more equality in finance, along with new opportunities to create assets that are easy, quick and cheap to transfer. There is strong competition however, with other blockchains of a similar nature, so time will tell what is best.

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