Tuesday, September 21, 2021
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Young smart contracts platform challenges Ethereum

Blockchain developers are starting to have a hard time: Should they rely on Ethereum, or would they prefer Cardano, Solana, Polkadot – or even Avalanche? The latter proof-of-stake network has worked its way up quickly in the crypto industry in the past few days and weeks. The AVAX token now has a market capitalization of more than ten billion euros after reaching its new all-time high of more than 64 euros.

Fast, inexpensive, environmentally friendly – this is how Avalanche, or Ava Labs actually, woos blockchain developers. Why use Ethereum or Polkadot when the Avalanche blockchain can manage 4,500 transactions per second and transactions are completed in less than two seconds – and at ten times lower costs than the currently by far leading smart contract platform Ethereum?

How DeFi developers are courted

Decentralized Exchanges (DEXs), crypto loans and NFTs, but also state identity procedures – the developers of Avalanche would like to see all of this running on their blockchain. There are already some examples, but compared to Ethereum or Solana, these are still small. But interest in Avalanche is growing, and a number of decentralized exchange and NFT providers have chosen Avalanche.

Similar to Solana (more on this here) or Terra (more on this here) there is also a startup behind Avalanche. Emin Gün Sirer, computer science professor at Cornell University, started Ava Labs in 2019. And, as is almost the rule with crypto startups, well-known investors soon got on board: Andreessen Horowitz, Initialized Capital, Bitmain, Mike Novogratz from Galaxy Digital and Polychain Capital and the business angels Balaji Srinivasan (ex-Coinbase) and Naval Ravikant (ex-CEO of Angellist) have already invested or bought AVAX tokens.

It takes more than a chain

While other smart contract projects are looking for peaceful coexistence with Ethereum (e.g. Solana and Polkadot), Sirer has switched to attack. Avalanche’s website presents the blockchain better in several places than that of Ethereum. “DeFi is growing rapidly beyond the boundaries of a single blockchain. Avalanche is fully compatible with Ethereum assets, apps and tools and offers faster speeds, higher throughput and lower fees, ”says the message to developers.

The declared goal of Sirer and his team is that Avalanche is better than its big brother even after the switch to Ethereum 2.0 (with Proof of Stake and Sharding). That will not be easy. Because while Ethereum is also growing strongly in the DeFi area, with Solana, Algorand and, more recently, Cardano, there are some other smart contract platforms that are vying for the favor of developers.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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