Despite the fact that the crypto industry began in 2009 with the introduction of Bitcoin, the growth of overall crypto users and cryptocurrencies in the last two years has been explosive. With over 18 000 cryptocurrencies available, distinguishing between future giants and fly-by-night coins has never been more important.
A few cryptocurrencies have risen to the top of the fiercely competitive field of blockchain innovations, demonstrating to the world that they are here to stay.
Avalanche, a smart contract blockchain similar to Ethereum, debuted in September 2020 and has since risen to the top ten cryptocurrencies. The design of Avalanche was intended to address some of the shortcomings of older cryptocurrencies such as Bitcoin and Ethereum.
Bitcoin was introduced as a peer-to-peer payment system, and Ethereum as an internet computer on which applications can run, but both have limitations such as speed (transactions per second) and finality (the amount of time it takes for a transaction to be complete). Avalanche, for example, reaches finality in 3 seconds, whereas Ethereum takes 1 minute.
Avalanche has one of the most innovative blockchain setups in the cryptocurrency industry. Its working structure is comprised of three distinct blockchains.
Avalanche is able to optimize for flexibility, speed, and security by dividing its architecture across multiple blockchains, .
The blockchain trilemma refers to scaling a blockchain to serve a large number of people while maintaining the highest levels of security on a decentralized network.
Blockchains have optimized for greater scalability, speed, and decentralisation without overcomplicating things. Blockchains like Solana, which provide the fastest transaction speeds to the highest number of users, prioritize scalability at the expense of decetralisation.
Ethereum, the market leader in smart contract platforms, maintains incredible security and decentralisation while sacrificing speed and user count. Avalanche’s innovative design sacrifices the least of all three by dividing Avalanche’s core tasks across three interoperable blockchains.
Avalanche’s top speed?
Bitcoin can handle 5 transactions per second, Ethereum 15 transactions per second, and Avalanche 4500 transactions per second. This falls short of Solana’s impressive claimed 50,000 tps because Avalanche provides better security and is more decentralized.
Another fantastic feature that makes Avalanche appealing is that it supports and leverages the Ethereum Virtual Machine (sounds cool but it’s just a virtual engine that runs code and applications). In addition, it is well-positioned to interact and integrate with other blockchains.
The rise of the Ethereum assassins
During the 2017 crypto bull run, Ethereum was the major investment thesis because it offered a completely different investment thesis than Bitcoin (digital unstoppable cash). Ethereum promised to the blockchain that you would be able to build and run any application you wanted and that no one would be able to stop you. A very valuable invention and technology that the world unquestionably requires.
This sparked a wave of innovation as people sought to create a better, faster version of Ethereum, dubbed “Ethereum killers” more recently. Before 2020, most people had never heard of Solana, Cardano, or, more recently, Avalanche.
These names became household names as a result of their insanely quick rise to the top of the cryptocurrency market and investment returns that would make anyone happy.
Avalanche has established itself with a very strong community of investors and developers to make the blockchain better and even more valuable, in addition to having returned investors and early believers with returns any investor dreams of.