Anne Sandager
2 days ago

Avalanche: Get to Know the New Kid on the Block(chain)

Avalanche, one of the freshest additions to the cryptocurrency landscape. So, what exactly is Avalanche, and is the buzz justified?
Image by frknck
Image by frknck

Think of it as a new, super-fast and eco-friendly alternative to the big names like Bitcoin and Ethereum. Avalanche aims to solve the classic 'trilemma' for blockchains: building a secure, scalable and decentralised platform without compromising on any of the three. It is also one of the most environmentally friendly coins on the market.

Here’s the fun part: Avalanche isn’t just a currency, it’s a whole platform where developers can create their own 'meme' cryptocurrencies and decentralized applications. Imagine it as a playground for digital money and apps, but everything is faster, cheaper, and more efficient.

Why is Avalanche getting so much buzz? Speed and efficiency. Transactions on Avalanche are incredibly quick, often finalized in less than a second. This is a huge deal because traditional cryptocurrencies can take minutes or even hours to process a transaction. Plus, Avalanche is designed to handle a massive number of transactions at once without slowing down, making it perfect for real-world use

Another major perk of Avalanche is its eco-friendliness. Unlike Bitcoin, which uses a ton of electricity due to its energy-intensive mining process, Avalanche uses a different method called “Proof of Stake”. This not only saves energy but also makes it more accessible to regular folks who don’t have massive computer setups for mining. A report by the Crypto Carbon Ratings Institute (CCRI) found that Avalanche stands out among its competitors. It uses only 8.2% of the energy consumed by Ethereum and only 0.00034% of that used by Bitcoin.

However, Avanche could be heading towards an uncertain future according to crypto expert, Mads Eberhardt. He explains that Avalanche used to be seen as a cheaper and more efficient system when Ethereum had trouble handling many transactions at once. But now, Ethereum has improved its ability to process transactions using 'Layer 2' solutions, like rollups, which make it faster and cheaper than Avalanche.

"For Avalanche to manage the upcoming release of many new tokens and to maintain its high market value, it needs to have a very high level of activity on its network that generates significant transaction fees, or it needs to see strong growth in this activity, preferably both," says Eberhardt. "However, Avalanche currently does not show either of these signs."


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