Ethereum, one of the renowned smart contract-focused blockchains, utilizes DeFi (decentralized finance).
The thing is, Ethereum transactions have been reported to be too slow. Not only that, fees are recommended for average users. Several competitors tried to solve these problems to overrule Ethereum’s success. Avalanche blockchain, a rival of Ethereum, was built by a strong team of blockchain experts, including Emin Gün Sirer, Co-founder of New York-based Ava Labs.
What is Avalanche exactly?
It is a blockchain that integrates scaling capabilities and fast confirmation through the Avalanche Consensus Protocol. Avalanche can process around 4,500 TPS. According to CoinDesk, AVAX (the native token of Avalanche) is known to be the 10th most significant token since it has a market of $33 billion as of March 2022.
Avalanche was launched last September 2020. As per DeFi Llama, it has more than $11 billion total value locked within its protocol, giving it the fourth spot in the top DeFi-supporting blockchain list.
The blockchain’s Defi ecosystem has protocols from Ethereum like decentralized exchange protocol SushiSwap and lending protocol Aave.
Avalanche: Faster and Cheaper than Ethereum
Avalanche is said to be a fast and cheap blockchain for decentralized finance. It is said that it has a capacity beyond capable of accommodating all the transactions in the world. Additionally, it also has low transaction fees without setting any ceiling on costs per execution.
Avalanche Will be the Main Competitor of Ethereum
It offers fast, affordable, and high-throughput smart contracts. In addition, AVAX has been designed to be easy, secure, and reliable. As a result, the blockchain is expected to be the main competitor of Ethereum for decentralized finance, which is highly anticipated by its community.
The blockchain is not just for DeFi. As per Ava Labs, they are also supporting metaverse investments since they wanted to establish the notion that an affordable network can also support virtual worlds and blockchain-based games.
As it seems, AVAX is set to be the next big thing in the blockchain industry. Not only for DeFi but also the virtual world, games, and any other platform requires fast transactions. Existing backends are not likely to support these transactions considering the significant demand.
Let us see what the future holds for Avalanche.