Avalanche was founded in the year of 2020 by associate Professor, Emin Gün Sirer. The project was developed at Cornell University by Sirer and his assistant team, Maofan Yin and Kevin Sekniqi.
Sirer is now the Founder and CEO of AVA Labs and also the creator of the Avalanche coin, AVAX, which powers the Avalanche protocol. The main vision behind Avalanche focuses on the development of an enhanced version of blockchain with amplified features.
In an interview with the Encode Club, Emin Gün Sirer said, “About every one of the 6,000 coins out there copied Bitcoin’s architecture. They are all doing the same thing, one coin, one virtual machine, one network. We envision something different. We want a world where there are many different coins built on top of Avalanche, each of them behaving in a different way. There is not going to be a single virtual machine that is one size fits all.” This, overall, explains the benefits behind the Avalanche protocol and the goal it’s trying to achieve.
The Technology behind Avalanche Coin
Avalanche is an open-source and a programmable blockchain. Therefore, it is considered to be flexible with the ability of using multiple languages within its network. Avalanche was built with the intention of serving the tech community as a platform for creating smart contracts and decentralized applications (dApps). It refers to itself as “the fastest smart contracts platform as measured by time-to-finality.”
The Avalanche protocol uses a Proof-of-Stake consensus mechanism. Using this consensus ensures the fact that it is more eco-friendly than its competitors, because it requires less consumption of energy when validating transactions. Furthermore, rather than having one blockchain carry out all computations, Avalanche uses three blockchains within its network to ensure a smoothly-run system.
Avalanche also offers a wide range of enhanced features within its blockchain such as scalability and interoperability. Founders of Avalanche believe it is the fastest platform to date, with a scalability of up to 4,500 transactions per second (TPS), and a transactional finality of less than 2 seconds.
What Makes Avalanche Coin Unique?
As mentioned above, Avalanche differs from other networks due to its use of three separate blockchains within its network. Each blockchain is designated a specific task to carry out within the network.
The Exchange Chain (X-Chain), is the blockchain responsible for creating and carrying out transactions within the Avalanche protocol. Such as the creation of new assets and carrying out exchanges. Any fees required from the transactions being carried out are settled with the Avalanche coin, AVAX.
The Contract Chain (C-Chain), is where smart contracts are created. Developers use this blockchain to create dApps within the Avalanche protocol, leveraging the protocol’s scalability and security.
Last but not least, the Platform Chain (P-Chain), is what allows the staking of tokens within the network. Not only that, it also allows developers to create L1 (Layer-1) or L2 (Layer-2) blockchains within the platform. In other words, the Avalanche protocol allows its users to create subnets within its system by using the P-Chain.
Avalanche (AVAX) Coin Price History
The Avalanche coin was discovered in the market on September of 2020. In late September it had an estimated price of $10.02 USD. It’s price declined by a percentage of 68.66 % between the months of September and the beginning of January of 2021. Since, AVAX had an estimated price of $3.14 USD by January 1st.
In just 6 weeks, the price of the Avalanche coin scored an astonishing percentage return of 1408.92%, when its price increased to an estimate of $47.38 on February 12th, 2021. Within 2 weeks however, the price of AVAX decreased to almost half of its value when it recorded a price of $23.85 USD by March 1st.
On June 1st, the Avalanche coin was valued at a price of $18.16 USD, and by the end of the month its value was set at $10.91 USD. The price of AVAX stayed within that range up until late in the month of August when it recorded an estimated price of $50.00 USD.
The fluctuating price of AVAX only increased beyond this point, until it reached its all time high value of $146.22 in late November. This is due to the announcement made by Emin Gün Sirer, regarding the fact that AVA Labs has partnered with Delloitte to improve the Federal Emergency Management Agency’s (FEMA) security, accuracy, and scalability. Up to this date, the Avalanche coin has recorded a percentage return of 2454.42% in investments.
Avalanche Coin Price Prediction 2022
In today’s marketplace, the Avalanche coin has a value of $118.35 USD. By the beginning of the year 2022 AVAX is reportedly going to be traded between the minimum price of $125.81 USD and a maximum of $141.53 USD.
The Avalanche coin is forecasted to reach the minimum price of $154.26 USD by the month of June, with the maximum price it would be traded for is estimated to be $175.11 USD.
By the end of the year of 2022, the price of the Avalanche coin is reportedly going to increase some more. It’s forecasted that the minimum price for the month of December will be recorded at a minimum value of $187.04 USD, and a maximum possible value of $221.64 USD. For the entirety of the year 2022, the Avalanche coin is expected to record an average percentage return of 39.75% for its investors.
Although Sirer believes that the Avalanche coin has a promising future within the crypto world, keep in mind that the crypto marketplace endures negative and positive fluctuations on the daily.
Therefore, it’s always best to assume that the coin you wish to invest in may crash at any point. In order to avoid loss through an investment, conduct thorough research about the desired cryptocurrency before investing your assets.
Sally is a student of International Business Management and is interested in topics related to blockchain technology. She is an author for gBlogo’s “Crypto World” column and provides insight on topics related to cryptocurrencies and NFTs.