The Avalanche Blockchain explained by @jani786
Assalam-o-Alaikum all friends! |
|---|
I hope that all of you will be doing well and I will pray for your health and success. Especially, I would like to welcome you to this post which is actually published in the Steem4Bloggers community. Today, I am going to explain a very successful blockchain platform that is Avalanche blockchain. So, turn towards the topic directly.
Avalanche Blockchain
Introduction |
|---|
The Avalanche platform is actually a blockchain-based decentralized platform that offers fast, scalable, cheap, and very efficient transactions. The Avalanche blockchain was developed in later 2020 by Ava Labs, under the control of different experts like Emin Gün Sirer, Kevin Sekniqi, Marfan “Ted” Yin, and Gün Sirer. The Avalanche blockchain is the most successful product of Ava Labs so far.
Basically, the cryptocurrency and blockchain systems were continuously experiencing a great problem that was the problem of scalability. As we all know that the scalability of the Bitcoin network and the Ethereum blockchain is much low to avail the users with a friendly system. So, the founders of the Avalanche blockchain decided to develop such a platform where they can experience very scalable, fast, and efficient transactions in the crypto space.
Explanation and Working |
|---|
The Avalanche Blockchain is sometimes noted as the opponent of the Ethereum Blockchain and this concept is purely discussed by its founders that "Avalance is the Ethereum Killer". This is because of the reasons that the transactions per second speed of the Avalanche blockchain is much greater than that of the Ethereum blockchain. The TPS of Avalanche blockchain is more than 45000 while the TPS for Ethereum blockchain is only 14. A huge difference can be seen there.
But according to my own views, we cannot compare the Avalanche Blockchain with the Ethereum blockchain. This is because of the reasons that the Ethereum blockchain is a much wide and more successful blockchain as there are hundreds of projects that are launched on this platform. While on the other hand, the Avalanche blockchain is a new one so a few projects have been launched so far but we can see more new contracts and platforms in the future.
The overall working of the Avalanche blockchain is based on three different chains that are as follows.
- X-Chain:
This is known as the Exchange chain and this chain deals with the exchange of the Avalanche coins.
- P-Chain:
This chain is also known as the Platform chain and it deals with the working of the platform.
- C-Chain:
This chain is actually the Contracts chain that deals with the accomplishment of the smart contracts between different projects and the Avalanche blockchain.
Coin of the Avalanche Blockchain |
|---|
The native token and actually the governance coin of the Avalanche blockchain is the "AVAX" coin. The use cases of the AVAX coin in the blockchain are many and therefore, the AVAX coin is one of the strong coins in the crypto space now. The AVAX coin can be used as the transaction fees in the blockchain for various transactions within the blockchain.
Also, the AVAX coin is also used for the signatures of the smart contracts in the Avalanche blockchain. The AVAx token is also very useful in the respect of staking. As the Avalanche blockchain also supports the Proof-of-Stake mechanism so the staking of the AVAX coin is much more profitable in the Avalanche blockchain.
There are actually transaction validators that are known as nodes in the Avalanche blockchain. These nodes are also selected on the basis of their staking of the AVAX coins. The more the staking of the AVAX coins, the more will be the chances of the nodes for been selected. Also, in return for validating the transactions, the nodes are also rewarded in the form of the AVAX tokens. So, that's why the AVAX coin is a very important coin in the Avalanche blockchain.
Fundamental Analysis of AVAX |
|---|
As we have explained earlier that the AVAX coin is a very successful coin of the time. The importance of any coin can be determined by the CoinMarketCap. So, I will also explore its CMC.
The Coinmarketcap of the AVAX coin describes the following.
- The current rank of the AVAX coin is 14.
- Current price of the AVAX coin is 21.5$.
- The 24-hour low price is 18.98$.
- The 24-hours high price is 22$.
- The Market Cap of AVAX is $6,122,514,789.
- 24-hours volume of AVAX is $659,786,221.
Technical Analysis of AVAX |
|---|
The study of the reputation of the prices of the coins after regular intervals through the charts and other tools is known as technical analysis. Technical Analysis plays a very important role in helping the traders to determine the future importance/value of the coins and their behaviors in the markets are also studied under the technical analysis.
Japanese Candlesticks patterns are the most commonly used technical analysis charts and various other technical tools are also applied to these charts to improve the quality of analysis of the markets. The most commonly used technical tools are the technical indicators.
Technical Indicators are the technical analysis tools that are actually based on the mathematical calculations that are hidden behind the circumstances of the indicators. These technical indicators can be applied on the price charts to improve the quality of the market analysis. Thus, I will apply two indicators on the AVAX price chart. The two indicators that are used by me are those that are discussed following.
- Relative Strength Index:
The relative Strength Index is a technical indicator that is commonly called RSI. According to expert analysts, the RSI indicator is an oscillator that oscillates between two various ranges (Overbought and Oversold). When the RSI indicator gives the Overbought region, it is a signal of the price decrease and vice versa case is applied with the Oversold region.
The Oversold region observed in the chart above that is the identification of the upcoming increasing price of the AVAX coin.
- Double EMA:
Double EMA is also another technical analysis tool that is used to determine the flow of the market of a particular crypto pair. This indicator is actually known as the trend follower as it follows a particular trend in the market. When the line of this indicator is above the candles, the price is expected to move downward and vice versa vase is applied if the line of this indicator is moving below the price of candles.
A clear bullish breakout can be determined by the Double EMA line. This breakout is another identification of the upcoming increase in the price of the AVAX coin.
- Results:
The combined effect of these two indicators shows that the price of the AVAX coin will increase in the near future and we would expect a bullish trend very soon.
Conclusions |
|---|
Avalanche blockchain is one of the most successful blockchain networks of this time. The Avalanche blockchain is actually considered the most efficient exponent of the Ethereum network. The Avalanche blockchain is very successful due to its high speed, high rewards, and much friendly interference.
When we compare the working of the avalanche blockchain with the Ethereum blockchain then we realise that the working of the Ethereum blockchain is much impressive than that of the Avalanche blockchain. The number of the smart contracts that Ethereum blockchain is dealing is more than that of the avalanche blockchain.
So we could say that Ethereum blockchain is more successful than that of the Avalanche blockchain in at that time.The AVAX coin is the governance currency and the native token of the Avalanche blockchain. Through the technical analysis that I have made, the price of the AVAX coin is expected to move upward.
Note:
| Topic | Avalanche Blockchain |
|---|---|
| COMMUNITY | Steem4bloggers |
| LOCATION | PAKISTAN🇵🇰 |
| AURTHOR | @jani786 |
| picture |  |
Special Mentioned
