About Avalanche (AVAX) 101 and the Bull Case for It

CovDuk expressed:  Blockchain tech has begun to transform industries. ETH is the dominant L1. However, it has many problems. It is not scalable and has high gas fees. So, about AVAX 101:

Avalanche 101 and the bull case for it.  Avalanche is a proof of stake platform (alternative L1) upon which Dapps, smart contracts and subnets (custom blockchains) can be created.

Avalanche is designed to integrate with existing protocols and chains, while providing the same level of security as ETH and Bitcoin.

Avalanche’s unprecedented consensus system allows for an insane number of transactions per second (4500 tps). Transactions are finalized in under a second. This is INCREDIBLY faster than existing. CryptoSeq shows the comparison.

Avalanche allows anyone to create applications on a range of different blockchain virtual machines, like Ethereum and Bitcoin. This means that you can essentially use ETH and bitcoin applications with AVAX lightning-fast speed.

However, unlike most other Ethereum virtual machines, AVAX does not compromise on decentralization.  Avalanche was designed with finance in mind. It allows for the easy creation of digital smart assets such as equities, bonds, derivatives, etc, making it one of the best places to build DeFi applications.

Avax has a hard supply cap of 720 milllion. There will only exist 720 million AVAX tokens. Of which, 360M were minted during launch. The other 360M will be released over decades.

In addition to this, fees of every transaction are COMPLETELY burned, increasing scarcity and reducing supply. This means that there is no loss of value due to inflation and in the long run, it’ll be deflationary.

Staking is another huge plus. Mining bitcoin used to be possible for anyone. But now, mining bitcoin is not viable for most people due to hardware and energy requirements.

Avalanche uses a proof of stake model for network security, which requires modest hardware and little energy consumption. Staking in Avalanche gives solid returns, at ~9% to 11%, depending on how long you stake.

There is no slashing, which means that staking only requires 60% uptime for rewards. Anything less than that won’t result in punishment, so there’s no need to worry about downtime or hardware problems.

Slashing or Staking has resulted in most people locking up their AVAX for long periods, reducing supply further. Currently, $11.27B is locked up. This is the 5th most for any chain.

The Avalanche ecosystem is rapidly growing. A bunch of DEXs and DAPPs have been deployed, with more on their way.  The DeFI space on Avalanche is growing massively.

GameFi is coming to Avalanche in full stream.

I’ve become particularly bullish on AVAX. It makes for an excellent finance platform. It is incredibly fast, highly customizable and interoperable. Platforms can build off of it and seamlessly integrate. It is one of the best places to build DeFi.

It has fixed supply cap like Bitcoin so it won’t suffer from inflation. Additionally, all transactions fees are burned, like EIP 1559, but the fees are completely burnt instead of partially. This reduces total supply which is great.

Staking offers great rates (~9-11%), making a solid long-term investment and encouraging tokens to be locked up, reducing supply.