One article to understand what is AVAX that has increased by more than 200% in 7 days?

Recently, as the Avalanche Foundation announced that it will launch the $180 million liquidity earning reward program Avalanche Rush, it encourages more applications and assets to join the Avalanche DeFi ecosystem. According to the plan, Avalanche will integrate Aave and Curve, the two DeFi protocols with the highest total locked value.

This move caused the concept of the avalanche agreement to become popular again. According to the Ouyi OKEx market, AVAX saw a weekly increase of more than 200%, becoming one of the most discussed projects in a week. As a smart contract platform, how does the Avalanche Protocol differ from other networks? Let us find out.

One article to understand what is AVAX that has increased by more than 200% in 7 days?

Ouyi OKEx K line screenshot

What is Avalanche?

The English name of the avalanche protocol is Avalanche, formerly known as Ava/AVA. The avalanche protocol is an open source blockchain platform designed for decentralized finance (DeFi). It was developed by Cornell University professor Emin Gün Sirer, the co-founder of IC3 and computer Scholar Kevin Sekniqi and Ted Yin, the first author of the HotStuff consensus on the Facebook Libra protocol, co-founded it.

As Cornell University professor Amy Guntheller said: ” Avalanche describes a new consensus protocol that combines the Satoshi Nakamoto consensus protocol with the classic consensus protocol. This is a major breakthrough .”

Consensus in distributed systems has always been an important topic in the field of computer science, and the Byzantine Generals problem is the top priority. During the war, when the army might have a traitor, how should the generals reach a consensus? This is the Byzantine generals problem, and it is also a reflection of the consensus problem.

As we all know, there are three ways to reach consensus in distributed systems : the classic consensus protocol, the Nakamoto consensus protocol, and the avalanche protocol. The classic consensus protocol was proposed by Lambert. It has the characteristics of strong consistency and high efficiency, but it also has the shortcomings of high communication cost and inability of nodes to enter and exit freely.

One article to understand what is AVAX that has increased by more than 200% in 7 days?

Schematic diagram of the working principle of the Classic Consensus Protocol (PBFT), source OKEx Research

The Nakamoto Consensus Protocol is a set of rules for verifying the authenticity of the blockchain network, combined with the proof-of-work consensus algorithm on the Byzantine Fault Tolerance (BFT) peer-to-peer network. The problem that the nodes cannot be freely entered and exited is solved, but the cost problem is still not solved .

One article to understand what is AVAX that has increased by more than 200% in 7 days?

Schematic diagram of the working principle of the Satoshi Nakamoto consensus protocol, source OKEx Research

The avalanche protocol merges the two methods into a brand-new protocol. It draws on the design of the probabilistic security assurance of the Nakamoto protocol and adds the BFT attribute. Unlike the existing consensus mechanism, the verifier of the avalanche network does not require expensive , Professional hardware equipment, the computer you use or old computer can also run a node.

Simply put, when a transaction is broadcast to the network, if the transaction is valid, the verifier will undergo a process called “repetitive random sampling”, which is to select a part of the system verifiers to participate in block verification.

If most nodes have the same description of the event, then it is judged to be true. If most nodes give different answers, the content of the event will be switched, and repeated sampling will be repeated until the end.

Through repeated sampling, until there are enough nodes to confirm that the probability is correct, so far, the confirmation is completed. In order to ensure security, mechanisms such as counters, trust levels, and directed acyclic graphs are introduced to make past transaction information difficult to be tampered with.

One article to understand what is AVAX that has increased by more than 200% in 7 days?

DAG diagram, source OKEx Research

Therefore, the avalanche protocol has the characteristics of high enterprise-level collaboration, high scalability, high Byzantine fault tolerance, low waste of resources, and low cost.

Avalanche agreement architecture:

Avalanche builds 3 default blockchains based on the main network, namely the platform chain (P chain), the exchange chain (X chain) and the contract chain (C chain) .

  • P chain, platform chain, is mainly responsible for staking tokens, coordinating network verifiers, and creating custom subnets.
  • The X chain, the transaction chain, mainly deals with the point-to-point creation and transaction of assets between individuals.
  • C chain, smart contract chain. The C chain is a default smart contract blockchain that can execute the Ethereum Virtual Machine (EVM) super fast .

Through the division of labor and collaboration between them, it supports network verification, issuance of new chains, asset creation and circulation, cross-chain, and smart contract deployment.

Did AVAX pull the offer just because of the $180 million incentive plan?

“On August 18th, the Avalanche Foundation announced that it will launch the $180 million liquidity earning reward program Avalanche Rush. One of the plans will be launched in the near future, providing Aave and Curve users with up to 3 months of AVAX liquidity Earn currency rewards. The Avalanche Foundation has prepared an AVAX incentive equivalent to US$20 million for Aave users and an AVAX incentive equivalent to US$7 million for Curve users.”

In the announcement issued by Avalanch, it is not difficult for us to have a $180 million monetary catalyst to attract as many Avae and Curve users as possible to pledge funds. For example, Bneqi, as the first loan project on AVAX, was only released within a few days. Get a lot of TVL.

But in fact, in addition to monetary stimulus, it is more important that the cross-chain bridge product Avalanche Bridge solves the actual pain points that it is difficult to transfer assets before. Moreover, Avalanche Rush officially stated in the announcement that it will use the new cross-chain bridge technology to launch more With more liquidity rewards, TVL changed from 50M to 250M in just 5 days. From this, we can see how much the emergence of cross-chain bridge products has improved the Avalanche ecosystem.

In addition to the content of this announcement, the overall economic model of AVAX is also relatively good, similar to the 1559 protocol of Ethereum, which makes avax different from other layer 1 networks. With the increase in activities on the chain, the introduction of the flywheel effect is increased. In the long run, the token model is also deflationary.

How to lock in AVAX to earn coins?

This is a problem that all users who want to participate in the chain need to face. Fortunately, some trading platforms now support lock-in trading platforms to earn coins, which greatly reduces the barriers to participation.

For example, Ouyi OKEx ’s coin-earning function can achieve this purpose, and it provides a total of 4 lock-up methods on demand and on a regular basis, which is convenient for any user who wants to participate, and holds lock-up and interest-increasing activities from time to time. Large lock-up income. In addition to AVAX, it also includes various mainstream currencies and popular currency earning functions.

One article to understand what is AVAX that has increased by more than 200% in 7 days?

Ouyi OKEx Earn Coin Page

Concluding remarks

Avalanche combines the advantages of the early two consensus protocols and improves their shortcomings. It has the advantages of high scalability and low cost. In addition, the $180 million incentive plan has led to a significant increase in the volume of AVAX transactions on OKEx. It is predicted that the ecology will be better in the future, but the risk of digital asset investment is relatively high. Please invest rationally.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/one-article-to-understand-what-is-avax-that-has-increased-by-more-than-200-in-7-days/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-08-24 13:41
Next 2021-08-24 13:42

Related articles