InstaForex

October 14, 2021

Stay away! Avalanche (AVAX) May Overcome Ethereum, Become the King of Smart Contracts!

 The Ethereum (ETH) network is often touted to overtake Bitcoin (BTC) one day.


Aside from the potential of Solana (SOL) and Cardano (ADA) which are said to compete closely with the network, Avalanche (AVAX) is also no less impressive, set to be the king of smart contracts replacing Ethereum.


Here are 5 factors why:


Avalanche, a platform to platform

Anyone can develop tailor-made applications, with the benefit of the Avalanche consensus.

The platform is similar to Polkadot and Cosmos but has higher rates in terms of production, transaction termination, and scalability to millions of verifiers with its impact on decentralized networks.

For the record, Avalanchec was the first smart contract platform to confirm a transaction in less than a second.

Consensus mechanism


The Avalanche has the advantages of the Nakamoto consensus: resilience, scalability, and decentralization.

It combines all the advantages of the traditional consensus: speed, fast resolution, and possessing energy efficiency.

Compatibility of Ethereum and ETH connectors

Avalanche is a smart contract chain that is 100% compatible with Ethereum Virtual Machine (EVM).

This means anyone can launch smart contracts in Ethereum -related programming languages, such as Solidity in A valanche.

The Avalanche-Ethereum Bridge can be used to transfer ERC20 tokens from Ethereum to Avalanche’s C-Chain and vice versa.

The total assets that have been successfully transferred reached a value of 3 billion.

Tokenomics and combustion models

Avalanche has a fixed supply of 720 million AVAX.

Based on this set amount, the ACAX will not face continued inflation.

This series also has a combustion mechanism. All transaction costs are paid in AVAX which will be burned to reduce the total supply.

Staking

AVAX is suitable to be used as a long -term investment as it combines staking and coin burning which will create a situation of AVAX supply limitation.

At the time of writing, as much as 31% or 220 million AVAX of the total supply is in the cycle.

AVAX traded at $ 55.93, recording a nearly 3% jump in 24 hours.