At a not-so-brilliant time for the cryptocurrency, he points out Avalanche, resulting in extremely intense growth. AVAX, in fact, over the last 24 hours it has recorded an increase of 4,45%, in line with the results of the last week, in which the token surged by 21%. As a result of this trend, it now ranks 11th in CoinMarketCap's market capitalization ranking. And it promises to grow further in the future, in line with the forecasts of many experts who have long reported the project.
Avalanche: what it is and how it works
Avalanche (AVAX) is a complete protocol for decentralized finance, which is able to offer the possibility of creating tokens, smart contracts and NFTs (non-fungible tokens) within blockchain intercommunicating. The project saw the light in the course of 2020 and immediately proved to be up to the ambitions. So much so that it is now indicated by many as a serious competitor for anyone who intends to establish themselves in the world of DeFi (decentralized finance).
Within this system, AVAX represents the reference token, the tool that allows you to take advantage of its features. Which are actually many and able to favor an ever stronger affirmation.
Moreover, Avalanche is capable of integrating the ERC 20 format, that is typical of the blockchain of Ethereum. By providing users with the ability to create i Fixed-Cap Assets, that is tokens fungible between them characterized by a maximum number in circulation e Variable Cap Assets, whose numerical ceiling can instead be subject to modulation over time.
Why Avalanche is really interesting
The great interest surrounding this project is driven in particular by the fact that it makes it possible for companies or individuals to create internal blockchains. Which work by adopting their own rules and operating mechanisms indicated by a contract. Thereby Avalanche comes to turn into a real one hub able to put blockchain and real economy in communication.
Furthermore, its protocol allows developers to create their own contracts, leveraging on a platform which is, at least on paper, infinitely scalable. To better understand this feature, just remember that their execution takes place in times around one minute.
The Avalanche AVAX wallet
Another interesting factor of the Avalanche project is the proposition of its own electronic wallet. The wallet, in question, can be installed on any type of computer using the web browser. A solution that is actually able to give a certain security for users active on the protocol. They are able to exchange small amounts of virtual money without having to fear the usual attacks by hackers. Given the fears related to raids of this kind, this is in fact a feature of no small importance.
How does AVAX mining work?
As regards the mining, also in this case AVAX presents itself with very particular characteristics. The tokens, in fact, are pre-mined and cannot be created as normally happens for the Bitcoin, that is, performing complex calculations aimed at the creation of new blocks. It is therefore not possible to resort to the hardware usually used to mine the new tokens. Which can, however, be obtained by giving rise to the liquidity mining. In practice by conducting the now traditional staking, in order to create liquidity which will then be converted with new tokens on the network.