With the emergence of many altcoins, Bitcoin is not the only common choice among investors. It will indeed remain stuck to its global popularity, but now some altcoins have the potential to compete with Bitcoin. If we look upon the list of promising cryptocurrencies that will rise in 2022, then it will include Ethereum, Cardano, Polkadot, Solana, Shiba Inu, and Avalanche. Today in this article, we are going to be reviewing the Avalanche network and would be knowing whether AVAX cryptocurrency is worth investing in 2022.
Briefing Avalanche and AVAX cryptocurrency
Avalanche is a decentralized secure blockchain network that is distributed around the globe. The developers have termed it as a ‘platform of platforms. Distinctively, the protocol makes the maximum advantage of 3 different blockchains regarding the creation of a reliable structure for the developers. In addition, the Avalanche network provides a payment medium in the form of its native digital token AVAX.
Issues resolved by Avalanche
The main motive behind the formation of Avalanche was to resolve issues spotted in present blockchain networks. This blockchain platform also aims to counter centralization with the provision of an operable substitute to networks like Ethereum. Besides this, Avalanche also fences the shortcomings brewing in the network with more operability, programming, and characteristics.
The formation of Avalanche is done for the scalability purpose. This blockchain network has showcased it’s worth coming at par with worldwide best payment processors like VISA and Paypal in terms of transaction timing in short duration. In other words, Avalanche blockchain is capable of processing 6,500 transactions per second.
In the case of functioning price, Avalanches excels better over Ethereum in terms of Gas fees which is more affordable in comparison to the latter. There are fees with the purpose of stamping and creating assets. Fees have to be paid for blockchain creation, transactions, and staking. After that, they are burned.
Advantage of Avalanche network
There are some great advantages of the Avalanche network for users in the corporate field or as an individual. One such benefit is the permission to create new blockchains easily by businesses. Another is the construction of selected tokens, coins, and blockchain services by developers. Coming on to AVAX cryptocurrency, it presents monetary tools including debt, equities, and divided real estate. These tokens can be coded as non-fungible tokens or NFTs.
Avalanche developers have one key goal which is permitting businesses for the creation of app-specific decentralized applications and blockchains. The creation of the Avalanche network was done for implementing more than one custom virtual machine in addition to AVM (Avalanche Virtual Machines). The capability of bending this blockchain network makes it possible for programming many languages including WASM (WebAssembly). The coding of this network was done with the use of the famous Go programming language.
It is not a hard task for the participants of the networks in the creation of digital smart assets and their trading. These newbie-created tokens can be adjusted according to the developer’s needs be it regulatory or technical. In that case, Avalanche proves its best in the creation of decentralized finance platforms.
Working of Avalanche network
When it comes to the functioning of the Avalanche network, then it follows the threefold blockchain strategy for clarifying the processes of development and conversions. Besides this, many features of early Bitcoin blockchains are also shared by Avalanche. One such similarity can be observed in the UTXO model. Further, the congestion is minimized via the Segwit protocol.
One of the key elements of Avalanche is the potential in the creation of blockchains. These new blockchains are named Subnets and they exist in the ecosystem of Avalanche. Developers can do complete programming over these blockchains. Networks can be set with special fee structures, tokens, and rules by them. Also, note that a subscription fee in AVAX cryptocurrency is required to be paid for creating your subnet.
Staking on the Avalanche network brings the possibility of earning rewards by the users in AVAX. There is less requirement for hardware in comparison to its competitors. What you need to be having is a 4 GB memory, 40 GB SSD, and a dual-core processor for the functioning of the Validator. The rewards gained by stakers range between 9,69% to 11.54% on average. But the person must be equipped with around 2000 AVAX to be qualified as a Validator on the Avalanche network.
Like every blockchain-based platform has its native token, the Avalanche ecosystem has AVAX as its native mainstream digital token. Users need to do fee payments in AVAX to receive rewards. These tokens are issued in a total of about 720 million as per schedule. At the time of launching, only 360 million tokens have been punched.
To buy AVAX, you can refer to exchanges including BitPanda, Uphold, Binance, and Gate.io. Ledger Nano S and its advanced version Ledger Nano X are the best hardware to store Avalanche cryptocurrency (AVAX). You will make a good choice investing in AVAX as it is the growing promising crypto in 2022. Log on to the Cryptoknowmics website to know the AVAX technical analysis.