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As people gradually realise the shortcomings of Ethereum such as stability, scalability, interoperability, etc., many other layer-1 blockchains areemerging as solutions for the future. Avalanche is one of them.
Avalanche ($AVAX) is a smart contract platform having the same concept "Internet of Blockchain" as Polkadot and Cosmos. Avalanche is an open source platform that enables the deployment of highly decentralised applications, financial products, digital assets, and interoperable blockchains.
Avalanche's outstanding technologies:
Speed: Avalanche's transaction processing speed is in seconds.
Scalability: Avalanche is capable of handling thousands of transactions per second and can accommodate thousands of validators without sacrificing performance.
Security: Avalanche ensures confidentiality and security. Avalanche supports smart contracts created and used by Solidity along with all the tools on Ethereum such as: Remix, Metamask, Trufle, etc.
Users can create their own public or private blockchains.
Built to serve the financial markets. Avalanche makes it easy to create and trade digital assets on complex terms. Assets can represent capital, shares, debt, real estate and many others.
What Problem Does the Avalanche Project Solve?
Currently, the financial market is still fragmented due to regulations and geographical distance. This makes trading difficult and a large amount of asset value is inaccessible for global users.
Avalanche allows financial networks to connect to a common platform that makes launching and trading digital assets easy. This is possible because Avalanche has created a platform for platforms where thousands of different sub-networks (depending on the users' purpose) can connect to create a global market network.
What is $AVAX?
Token Use Case
$AVAX is Avalanche's native token and is used for the following purposes:
Fees: Any activity deployed on a Avalanche subnet will be charged in $AVAX.
Staking: To become a validator or block creator in Avalanche or one of all other subnets requires a minimum of 2,000 $AVAX.
Note: Total tokens are 720 million $AVAX, mainnet provides 360 million tokens. The system will continuously mine until the total supply limit is reached. The $AVAX used to pay the fee will be burned, increasing the scarcity of the token over time.
What Else Did You Miss?
Lending & Borrowing
DeFi Lego On Avalanche
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We have discussed about infrastructural development, and we reviewed a few important Legos. In the Avalanche ecosystem, after they develop a solid foundation, DeFI is the next point to look at. The projects in DeFi are still very primitive and few, but the potential is huge if Avalanche makes good use of it.
Currently there are about 30 projects developed on Avalanche, but only 4 have TVL >$100, of which BENQI has surpassed $1B in TVL.