5 reasons to be very optimistic about Avalanche ($ AVAX)
5 reasons to be very optimistic about Avalanche ($AVAX)
Avalanche had its blockchain (mainnet) launched last September 21, only 2 months after the resounding success of the initial public sale of $ AVAX, the platform’s native token.
In this article I will describe 5 reasons why investors and cryptocurrency enthusiasts should be very optimistic about this project led by AVA Labs.
1. Use of a revolutionary new consensus protocol
It is not every day that a new consensus protocol is born.
Basically there were 2 types of consensus protocols used in cryptocurrencies: the classic protocol of the 70s, used in Facebook’s Libra cryptocurrencies and in projects like EOS and NEO and the Nakamoto Consensus launched in 2008, used in Bitcoin and Ethereum 1.0.
The classic protocol allows high speed of transactions, but is vulnerable for not achieving high decentralization. Meanwhile, the Nakamoto protocol achieves greater security with greater decentralization but operates at a low transaction speed.
Avalanche is a new protocol launched in 2018, which manages to deliver the best of the two old protocols. The protocol was developed by a pseudonym group known as Team Rocket, assisted by Professor Emin Gun Sirer of Cornell University, who has been working with cryptocurrencies since 2003.
Gun Sirer is the CEO of AVA Labs and one of the founders of Avalanche ($ AVAX)
2. Highly decentralized, great scalability with high transaction speed
Blockchain projects that use classic protocols like NEO and EOS, usually don’t have more than 25 validators. And also Facebook’s Libra is expeted to have only a maximum of 100 validators.
Even one of the founders of Libra, Maofan “Ted” Yin, is currently working at AVA Labs.
Avalanche, unlike the classic protocol, can accommodate millions of validators.
In its Testnet Denali more than 1000 validators participated and now in the recently launched Mainnet there are already more than 500 active validators.
It is also important to note that no permission is required to become an Avalanche validator, just like Bitcoin. However, at BTC today, the validation system through mining is also very centralized, with approximately 15 validators (miners) representing around 90% of the validations.
Avalanche, in addition to being highly decentralized, has a transaction speed of 4500 TPS (transactions per second).
This speed is incredibly higher than that of Bitcoin, with its 7 TPS, or that of Ethereum, with 14TPS.
In fact, Avalanche has even left VISA behind. The card processor reaches approximately 1700 TPS.
Additionally, Avalanche transactions are confirmed in less than 1 second, while in Bitcoin it takes up to 1 hour to be 100% confirmed. Ethereum, at best, takes 14s.
3. High level of security
A very important and frequently cited question on cryptocurrency discussion forums is the possibility of carrying out a 51% attack of computational strength and making a double spending on a given blockchain.
Satoshi Nakamoto himself mentions this risk several times in his original Bitcoin White Paper released in 2008, as this excerpt says below in the introduction to Paper.
“The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes”.
This type of attack has already occurred in several currencies like Bitcoin Gold and less than 2 months ago in the Ethereum Classic.
Avalanche, on the other hand, as described in its White Paper, has much greater resistance to attacks than the existing blockchains today and therefore manages to maintain a high level of security and without losing its characteristic of being highly decentralized.
4. The Avalanche has already been praised by several renowned people in the sector
There are plenty of positive quotes and references about Avalanche.
Vitalik Buterin, co-founder of Ethereum and Alexis Ohanian, co-founder of Reddit, for example.
Other blockchain projects are also interested in using the Avalanche Consensus protocol to boost their projects.
Ripple’s CEO Brad Garlington recently announced that he will launch a DeFi platform that allegedly uses the Avalanche Consensus protocol.
And the developers of Bitcoin Cash have also proposed a pre-consensus protocol based on Avalanche to increase the speed and security of peer to peer payments.
In addition, well-known names such as Andressen Horowitz, Michael Novograts’ Galaxy Digital and also Bitmain, participated in the private sale of the AVAX token, still in early 2019.
The initial public sale of AVAX also involved the owner of a portfolio of the Ethereum genesis block that had never been move the coins, with no less than 9500 ETH being sent, more than $ 2 million USD in the ETH quotation at the time of the public sale of Avalanche this year.
5. Large, multi-language supported community
When you join the official Avalanche group on Telegram you are soon faced with the following message:
In other words, the main group already has more than 10,000 participants. There are also Telegram groups in 16 languages, each dedicated to providing support and exchanging information about Avalanche in each language, with well-trained administrators who stay online most of the day. .
Actually the creators of Avalanche planned very well, not only the technical part of Blockchain, but also the dissemination to all the people of the world.
In addition, there is the Avalanche Hub, a platform that has a reward system for those who do certain tasks that help to publicize the Avalanche project. Rewards can be exchanged for Amazon Gift Cards or the $AVAX token.
The Avalanche Hub Telegram group already has more than 1200 participants and the number of people continues to grow.
A growing community with an incentive system is a big step for a project to grow sustainably and create network effect.
5 reasons to be very optimistic about Avalanche ($ AVAX) was originally published in Avalanche Hub on Medium, where people are continuing the conversation by highlighting and responding to this story.