Avalanche wallet sees the piecemeal nature of the crypto market across the world as a big hurdle. Currently, different countries work on different financial systems and regulations. Smooth trading of digital assets can be problematic.
Avalanche aims to solve this. It’s aiming to create a unified global financial market, where users of the platform will be able to trade digital currency in a frictionless way.
The project uses the proof-of-stake consensus algorithm. This not only makes it fast, but also consumes less energy than some other exchanges available. Avalanche’s own consensus network, AVA, enables this while also allowing the development of dApps by users to enhance the platform further. AVA also allows users to launch their own, admittedly smaller, networks with the right infrastructure.
The Avalanche network plays host to ethereum, bitcoin, and other cryptocurrencies, as well as collectibles. It also enables P2P lending on its platform, something which has only recently come to the crypto space.
Encompassing multiple blockchains, Avalanche processes around 4,500 transactions per second. The advantage of these multiple blockchains and the proof-of-stake system means that Avalanche is much faster than other exchanges and coins.
The consensus that the Avalanche platform uses combines previous consensus mechanisms, such as the Nakamoto consensus from Bitcoin and Classical consensus. These provide both speed and security for users and holders of the AVAX token that is the primary currency of the platform. This, they argue, is a vast improvement from previous systems.
Avalanche offers a wide range of services. This includes peer-to-peer lending, trading, and the creation of sub-networks (which requires AVAX tokens). The platform aims to give a smooth running experience across different financial assets and activities.
Avalanche wallet as it was intended, also presents many new possibilities for developers and creators of dApps on the blockchain. Another step towards Web 3.0 or, as Avalanche dubs their platform, the Internet of money. The platform will act as a central hub and exchange for the future of financial transactions, both crypto and more traditional.
While it is a relatively new concept to have one platform for a range of different assets, there are already competitors to Avalanche. One of these, despite their recent partnership, is Ethereum. Unlike Avalanche, Ethereum does not offer such flexibility. However, it has become a central crypto to many transactions, including staking.
Secondly, we have Algorand. With a plethora of partners, from universities to major financial services, Algorand is arguably more established than Avalanche. However, where the former falls behind, despite its many achievements, is that it is purely focused on the blockchain.