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What is Avalanche (AVAX)?
Avalanche is a third generation, layer one blockchain protocol that utilizes an implementation of Proof-of-Stake to gain network consensus.
Avalanche was created by Ava Labs, a private Brooklyn based company, founded by Cornell professor Emin Gun Sirer, and two Cornell PhDs, Kevin Seqniki and Maofan Yin. Emin Gun Sirer is well known in cryptocurrencies for creating Karma, the first Proof of Work protocol, that predated Bitcoin by 6 years. He also is known for being the founder of bloxRoute, a popular Ethereum scaling solution.
Avalanche - in their own words
Avalanche is a layer one blockchain that functions as a platform for decentralized applications and custom blockchain networks. It is one of Ethereum’s rivals, aiming to unseat Ethereum as the most popular blockchain for smart contracts. It aims to do so by having a higher transaction output of up to 6,500 transactions per second while not compromising scalability.
This is made possible by Avalanche’s unique architecture. The Avalanche network consists of three individual blockchains: the X-Chain, C-Chain and P-Chain. Each chain has a distinct purpose, which is radically different from the approach Bitcoin and Ethereum use, namely having all nodes validate all transactions. Avalanche blockchains even use different consensus mechanisms based on their use cases.
After its mainnet launch in 2020, Avalanche has worked on developing its own ecosystem of DApps and DeFi. Various Ethereum-based projects such as SushiSwap and TrueUSD have integrated with Avalanche. Furthermore, the platform is constantly working on improving interoperability between its own ecosystem and Ethereum, like through the development of bridges.
AVAX utility?
AVAX is the native token of the Avalanche network, utilized for transaction fees, network security, and as a basic unit of account.
What does this mean for USDC?
Avalanche USDC is easily accessible for exchanges, fintechs, institutional traders, and developers via the Circle Account and Circle APIs, enabling several use cases:
- Near instantaneous programmatic payments, anywhere in the world
- Trading, borrowing, lending etc. through blockchain applications
- Payments for e-commerce, NFT marketplaces, gaming, and more
When using the Avalanche Network, users also benefit from the faster transactions and lower fees associated with third generation layer one blockchain. For more on Avalanche, check out their blog here.
NOT FINANCIAL ADVICE
Please note that Uphold and its affiliates do not provide investment, tax, or legal advice. This message is for informational purposes only and takes no account of particular personal or market circumstances, and should not be relied upon as investment, tax, or legal advice. For investment, tax, or legal advice and before taking any action you should consult your own advisors. Note that digital assets such as cryptocurrencies present unique risks for investors. Please see our disclaimer regarding risks specific to holding digital assets before investing.
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