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Avalanche start can be traced back to a file-sharing site called Internet Planetary File System in May of 2018. The group that derived the concept went by the name of "Team Rocket. A team from Cornel University led by Emin Gün Sirer was assisted by doctoral students Maofan "Ted" Yin and Kevin Sekniqi. Later, Ava Labs was set up to help support the financial requirements to aid the research. Avalanche describes itself as an open-source blockchain where people can build decentralized applications and enterprise blockchains. Developers can build their own sub-blockchains on the network using blockchain security while setting their own parameters. Avalanche has three main branches to help provide a fast and secure network. The first is the exchange chain or called the x-chain. As you probably guessed, this is where you exchange tokens. You can send or receive other tokens through this chain besides Avax, but all transaction fees are paid in Avax. The second branch is the contract chain, which also goes by the c-chain. This is where developers can build dapps and write smart contracts. The coding for this chain is compatible with Ethereum’s code. This means anyone who has a project on the Ethereum blockchain could just copy and paste it to Avax with no conflicts in the coding script. Finally, there is the Platform chain called the p-chain. The p-chain lets people build layer one and layer two blockchains, which are called subnets. This chain is also responsible for keeping track of all the validators for Avalanche and validators for the subnets.
Unlike a lot of chains that reward validators with a cut of the fee from the transaction, they are rewarded from the pool of Avax that still needs to be minted. As of 5/22, the rewards were a little over nine percent a year. They designed the token to be deflationary so when paying transaction fees there is a burn mechanism in place.
POS Token
Circulating Supply 393,236,521 AVAX
Total Supply 442,582,825 AVAX
Max Supply 720,000,000 AVAX
Avalanche comes with many positive marks. They have a well-established community and several projects have been built on them. They have one of the fastest and most robust networks when it comes to processing transactions. They are easy to understand and navigate. The fees are very reasonable for smaller transactions. Developers are easy to find since the programming language is common and is shared with Ethereum.
The few drawbacks Avalanche has been the need to have twenty-five tokens before you can stake them on their native wallet. At launch this was very affordable, however, since the token is deflationary this means it will become harder. There is some trickiness to the way they run three different chains to make one chain. This can confuse newcomers. The fees scale to the size of data transactions. This can make moving large amounts of tokens expensive. Also, Ava Labs has a strong influence over Avalanche, even if they are working to improve it, this can still be a negative to people looking for true decentralization.
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