Avalanche (AVAX) is one of the crypto projects geared toward disrupting traditional finance. These projects offer a range of functions—from crypto lending and borrowing to decentralized exchanges. It is a programmable platform for creating decentralized applications. 

What is Avalanche?

Three adjectives describe Avalanche, a blockchain created by Ava Labs: blazingly fast, low cost, and eco-friendly. These qualities make it possible for developers to use Avalanche to create secure, high-throughput, and purpose-built decentralized applications (DApps). It provides an encompassing platform for creating and trading digital assets. 

AVAX, Avalanche’s native token, is a scarce asset with a capped supply. The token is used for peer-to-peer payments, staking, and atomic swaps. AVAX has a max supply of 720 million, with 281,740,433.39 AVAX currently in circulation. It has a market cap of $5,937,487,969 and trades at $21.07 at writing.

What are the use cases of Avalance and how does it work?

The functionality of Avalanche is predicated on three use cases. First, Avalanche is used to build both private and permissionless customizable blockchains. Second, it is used to create scalable decentralized applications. Third, it is used to build random but complex digital assets with their own native rules and contracts. 

Because of these use cases, Avalanche was designed with key properties that make it a light, low-cost, and eco-friendly platform for decentralized applications. These properties include scalability, security, decentralization, interoperability, and flexibility.

Scalability

Avalanche’s robust consensus engine supports a large network of hundreds of millions of interconnected devices. By delegating work among these devices, the Avalanche protocol can manage millions of tasks at once. The network consists of low and high-powered devices that operate uniformly and carry out low-latency, high-speed transactions.

Security

To understand the strength of Avalanche’s security, one needs to understand what a 51% attack means. For a miner or a group of miners to attack a blockchain network, they must control over 50% of the network’s computing power or mining hash rate. Bitcoin’s setup means a 51% attack is still theoretically possible. Bitcoin SV, Verge, and Ethereum Classic have suffered a 51% attack. But for Avalanche, it is different.

Avalanche’s structure makes it resistant to network attacks. To attack Avalanche’s network, the hacker must control at least 80% of its computational power at the same time.   

Decentralized and Democratic

Avalanche is a platform devoid of any kind of centralized control. It unifies different classes of crypto users—miners, developers, and users. Thus, it erases divisions among these classes, making it an inclusive platform that allows for multiple client implementations. Anyone can connect to the Avalanche network, become a validator, and participate in network governance. 

Flexible and Interoperable

Avalanche has a flexible infrastructure that supports a myriad of blockchains. It supports different scripting languages and virtual machines. Therefore, developers can port and deploy existing blockchains on Avalanche. 

Avalanche uses three interoperable blockchains to achieve its uniqueness. These blockchains are the Exchange Chain (X-Chain), the Contract Chain (C-Chain), and the Platform Chain (P-Chain).

• The Exchange Chain (X-Chain): This chain creates and exchanges AVAX tokens and other digital assets. It uses the Avalanche Consensus protocol, and transaction fees are paid in AVAX.
• The Contract Chain (C-Chain): This is the platform where developers can create smart contracts for decentralized applications (DApps). The Contract Chain enables the creation of DApps that are compatible with the Ethereum Virtual Machine (EVM). The consensus mechanism on this chain is called Snowman, a modified version of the Avalanche Consensus protocol.
• The Platform Chain (P-Chain): This chain also uses Snowman, and it harmonizes network validators. It also creates new subnetworks and tracks existing ones. 

By running on three blockchains with different roles, Avalanche achieves speed and scalability, In addition to these properties, Avalanche’s native token, $AVAX, is not only a unit of exchange between the multiple subnets on Avalanche but also an asset that secures the platform.

AVAX Token

Transaction fees on the Avalanche network are paid in AVAX. Every transaction fee is burned as a deflationary mechanism. This is why the token has a total supply of 404,229,626, although it has a capped supply of 720 million. 

Asides from being used as a transaction fee and a unit of exchange between subnets, AVAX holders can stake their holding to become a validator or delegate it to a validator. A validator receives an APY of up to 10%, of which delegators receive a set percentage. 

Where to trade Avalanche (AVAX)?

Like many tokens, the most secure and reliable way to trade AVAX is by using crypto exchanges. Some of these exchanges include:

• 7B – One of the easiest user-friendly exchange app. 7B is a crypto broker that operates on the Binance exchange and offers as many coins
• Binance – Binance supports more than 500 coins via its app and exchanges and has built its reputation as the biggest exchange in the world.
• Huobi Global – One of the oldest exchanges around, Huobi offers several trading tools at relatively low fees.

Why you should trade/invest in AVAX?

The crypto market is volatile and riddled with uncertainty, thus investing in tokens requires conducting due diligence to spot qualities that make them investable. For AVAX, some of these qualities include its total value locked (TVL), its roadmap, and its technology.  

Total Value Locked (TVL)

The total value locked (TVL) of an asset is the number of users’ funds locked or deposited in a Defi protocol. The TVL of an asset indicates its value and potential. Vested funds can be used for staking, lending, or liquidity pools. Since TVL indicates the viability of the asset, it shows the level of faith investors have in the asset. Therefore, a high TVL means the asset has high liquidity, usability, and popularity. Ethereum has the largest Defi TVL; accounting for nearly half of the total volume in the world.  

With a TVL valued at about $3.71 billion, AVAX has the fourth-largest TVL, ranking ahead of Solana.

The Roadmap and Projects

So far, Avalanche has completed several fundraising rounds. For instance, in April 2022, Ava Labs raised $350m to build out Avalanche. The project is also backed by some big crypto players such as Polychain Capital, Andreessen Horowitz, and Three Arrows Capital.

Avalanche is home to several reputable crypto projects. These include Avalaunch ($XAVA)—Avalanche’s launchpad; Trader Joe ($JOE)—a yield farm platform; and BenQi ($QI); a lending and borrowing protocol. 

The Technology

As stated earlier, Avalanche is a scalable, secure, and democratized platform. It operates a proof-of-stake protocol and has three interoperable blockchains: Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain). The Primary Network validates and secures these blockchains. The Primary Network is a special subnet that constitutes members of all custom subnets. An individual can only be a member of the Primary Network when they stake at least 2,000 AVAX.

How to trade Avalanche using the 7b crypto trading app?

The 7b Crypto Broker App is one of the most reliable places to trade Avalanche (AVAX). With a user-friendly interface, anyone can trade AVAX using these steps:

1. Download the 7b crypto trading app from Google Play Store.
2. Create a new account or log in if you are an existing user.
3. Click “Deposit”.
4. Select your crypto of choice that will be used to purchase AVAX. You can also click on “Fiat” to select the fiat currency to purchase Fantom for USD, EUR or GBP with a credit card. 
5. Go to the trading section.
6. Find and select AVAX from the list of cryptocurrencies.
7. Click “Buy” and enter the amount of AVAX you want to buy.
8. Check the exchange rate and other data.
9. Confirm the transaction.
10. Congratulations! You’ve made an AVAX trade.

Video: How to trade AVAX?

Watch our video guide to learn how to trade Avalanche in the 7b crypto trading app.