{"id":10456,"date":"2023-06-10T12:36:32","date_gmt":"2023-06-10T12:36:32","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10456"},"modified":"2022-05-17T07:56:11","modified_gmt":"2022-05-17T07:56:11","slug":"what-is-and-how-it-works-avalanche-avax","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-and-how-it-works-avalanche-avax","title":{"rendered":"What is Avalanche (AVAX) and how does it work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-and-how-it-works-avalanche-avax\/#avalanche_history\" >Avalanche History<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-and-how-it-works-avalanche-avax\/#how_does_avalanche_work\" >How does Avalanche work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-and-how-it-works-avalanche-avax\/#avax_token\" >AVAX Token<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>When we talk about Avalanche we refer to a\u00a0<strong>consensus algorithm<\/strong>\u00a0mechanism. This\u00a0<strong>open source<\/strong>\u00a0blockchain protocol hosts interoperable blockchains as well as decentralized applications and financial primitives.<\/p>\n<p>One of the characteristics for which this protocol is best known is for becoming a\u00a0<strong>competitor<\/strong>\u00a0to the second blockchain with the largest market capitalization, Ethereum. This is because this network is compatible with the\u00a0<strong>Ethereum Virtual Machine<\/strong>. This has generated confidence that this network can even host Ethereum network applications offering greater advantages.<\/p>\n<p>In a few words, Avalanche is\u00a0<strong>a platform oriented to the launch of DeFi world applications<\/strong>, financial\u00a0<strong>assets<\/strong>\u00a0and other services such as trades. The main objective of this platform is to act as a\u00a0<strong>global<\/strong>\u00a0asset exchange. This way it allows any user to trade any asset and launch their own. All this in a\u00a0<strong>decentralized<\/strong>\u00a0way by means of the well-known\u00a0<strong>smart contracts<\/strong>\u00a0and other modern technologies.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"avalanche_history\"><\/span><strong>Avalanche History<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>The Avalanche project has a total of three co-founders, they are\u00a0<strong>Emin G\u00fcn Sirer, Kevin Sekniqi and Maofan. Emin<\/strong>\u00a0is a veteran computer scientist who has long been associated with\u00a0<strong>Bitcoin<\/strong>\u00a0and decentralized networks. During his work studying Bitcoin he became concerned about Bitcoin\u2019s\u00a0<strong>scalability<\/strong>\u00a0so he created Avalanche, the reward of his exhaustive research.<\/p>\n<p>This new project allows a much higher total\u00a0<strong>transaction<\/strong>\u00a0volume than Bitcoin and could even be allowed to compete with\u00a0<strong>VISA<\/strong>. The other two co-founders, Kevin and Maofan are also associated with the same university, Cornell. Behind this project there is a whole team consisting of experts in the fields of computer science, economics, finance and law. The company of this team is\u00a0<strong>Ava Labs<\/strong>.<\/p>\n<p>The project had its official beginnings in\u00a0<strong>2018<\/strong>\u00a0although Avalanche\u2019s mainnet was launched on\u00a0<strong>September 21, 2020<\/strong>\u00a0and its launch was a success. As expected, part of Avalanche\u2019s funding was an\u00a0<strong>ICO<\/strong>. The Ava Labs team scheduled a\u00a0<strong>private sale<\/strong>\u00a0of AVAX tokens for\u00a0<strong>June 24, 2020<\/strong>\u00a0and clearly, it was a very successful ICO. According to information on their official blog, in the first sale targeted at a group of investors Ava Labs capitalized a total of<strong>\u00a0$12 million.\u00a0<\/strong><\/p>\n<p>Shortly thereafter, the team behind the project announced a\u00a0<strong>public sale<\/strong>\u00a0of AVAX tokens on\u00a0<strong>July 22nd<\/strong>\u00a0of the same year. This second sale raised a total of\u00a0<strong>$42 million<\/strong>\u00a0in less than four hours. Needless to say, the amount of coins earmarked for the sale sold out.<\/p>\n<p>Not only a platform was launched, but also a native\u00a0<strong>token<\/strong>\u00a0called\u00a0<strong>AVAX<\/strong>. This token is responsible for performing various tasks within the platform such as a\u00a0<strong>reward<\/strong>\u00a0and payment system for users.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_1645628750\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu%C3%A9-es-Avalanche1.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-Avalanche1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-Avalanche1-300x205.jpg 300w\" alt=\"Qu\u00e9-es-Avalanche\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-Avalanche1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-Avalanche1-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-Avalanche1.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_avalanche_work\"><\/span><strong>How does Avalanche work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>As we already know, Avalanche is an\u00a0<strong>open source<\/strong>\u00a0platform aimed at launching\u00a0<strong>decentralized<\/strong>\u00a0applications in addition to new implementations on the blockchain. All this in an\u00a0<strong>interoperable<\/strong>\u00a0and, above all, highly scalable ecosystem.<\/p>\n<p>Now, what makes this platform one of the most important with respect to smart contracts? This is the first platform that can\u00a0<strong>confirm transactions<\/strong>\u00a0in less than a second which gives it a remarkable advantage over the titan we all know as\u00a0<strong>Ethereum<\/strong>. If that wasn\u2019t enough, it also supports Ethereum\u2019s\u00a0<strong>development toolkit<\/strong>\u00a0and offers the possibility for millions of validators to produce full blocks.<\/p>\n<p>Avalanche has the capacity to\u00a0<strong>process orders<\/strong>\u00a0of a greater magnitude than the rest of the existing\u00a0<strong>blockchain<\/strong>\u00a0networks, we are talking about more than\u00a0<strong>4500 transactions per second.<\/strong>\u00a0Another advantage it offers is greater security than 51% of existing networks.<\/p>\n<p>The network implements a system based on the\u00a0<strong>Proof of Stake<\/strong>\u00a0mechanism where millions of users are allowed to be validators of operations managing to process thousands of transactions per second. This\u00a0<strong>guarantees<\/strong>\u00a0the\u00a0<strong>high speed<\/strong>\u00a0that competes with Ethereum when performing a transaction.<\/p>\n<p>Under this system the\u00a0<strong>Avalanche network allows incorporating other sub-networks<\/strong>\u00a0that operate through\u00a0<strong>virtual machines<\/strong>\u00a0thus allowing interconnection with other blockchains in the form of bridges. Thus the platform supports trending markets such as the\u00a0<strong>buying and selling<\/strong>\u00a0of\u00a0<strong><a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-are-nft-tokens-and-how-do-they-work\/\">NFT<\/a>\u00a0tokens<\/strong>\u00a0or the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-defi-o-decentralized-finance\/\">DeFi<\/a>\u00a0ecosystem.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>&nbsp;<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"avax_token\"><\/span><strong>AVAX Token<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Avax is the\u00a0<strong>native<\/strong>\u00a0token of the Avalanche platform. It is used to secure the network through\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-cryptocurrency-staking\/\"><strong>staking<\/strong><\/a>, it also functions as a\u00a0<strong>reward<\/strong>\u00a0to incentivize users and\u00a0<strong>pay<\/strong>\u00a0network fees. AVAX provides a\u00a0<strong>basic unit<\/strong>\u00a0of account between the multiple\u00a0<strong>sub-networks<\/strong>\u00a0that are connected on the Avalanche platform.<\/p>\n<p>Considering that the official launch of the Avax token is\u00a0<strong>recent<\/strong>\u00a0we can say that the token has evolved\u00a0<strong>remarkably<\/strong>\u00a0and has given enough benefits to its investors.<\/p>\n<p>The token began trading on\u00a0<strong>September 21<\/strong>, costing $4.6 per coin. In the first few days alone, the token was already\u00a0<strong>150%<\/strong>\u00a0higher than the initial estimated price of $1.7.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>When we talk about Avalanche we refer to a\u00a0consensus algorithm\u00a0mechanism. This\u00a0open source\u00a0blockchain protocol hosts interoperable blockchains as well as decentralized applications and financial primitives. One of the characteristics for which this protocol is best known is for becoming a\u00a0competitor\u00a0to the second blockchain with the largest market capitalization, Ethereum. This is because this network is compatible [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10456"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10456\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7924"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}