The native coin of the Avalanche blockchain technology is called AVAX. Like in every comparison, it’s critical to comprehend the context and particular elements being assessed. To fully grasp AVAX’s special qualities and prospective benefits, let’s compare it thoroughly with other well-known cryptocurrencies.
AVAX uses Avalanche, a revolutionary consensus mechanism renowned for its high throughput and low latency, while Bitcoin uses Proof-of-Work (PoW) for consensus.
AVAX is better suited to handle a higher volume of transactions per second due to its much higher transaction throughput when compared to Bitcoin.
Since Bitcoin is a PoW-based blockchain, its energy-intensive mining process has attracted criticism. The consensus mechanism in Avalanche, however, uses less energy.
While AVAX supports smart contracts, allowing developers to create decentralized apps (dApps), bitcoin primarily functions as a digital store of wealth.
Ethereum (ETH) now utilizes Proof-of-Work (PoW) but is switching to Ethereum 2.0, which will use Proof-of-Stake (PoS). The hybrid Byzantine Fault Tolerance (BFT) and PoS protocol known as AVAX’s Avalanche consensus provides fast finality and scalability benefits.
By offering quicker transaction confirmation times and increased throughput, AVAX seeks to alleviate Ethereum’s scalability issues.
During times of congestion, Ethereum’s network has faced high gas fees, making transactions more expensive for customers. AVAX might be a more economical due to its minimal fees and scalable architecture.
Avalanche supports cross-chain interoperability, allowing for easy communication with other blockchain networks. This feature is essential for the widespread adoption of blockchain technology.
The primary function of Binance Coin is to act as the native cryptocurrency of the Binance exchange, allowing a variety of use cases like reduced trading fees and access to token sales. The Avalanche platform’s native coin, on the other hand, AVAX, supports its ecosystem and decentralized apps.
Binance Chain, on which Binance Coin runs, employs the Byzantine Fault Tolerance (BFT) consensus mechanism based on Tendermint. The consensus algorithm used by Avalanche is distinct and offers special advantages in terms of scalability and decentralization.
The Avalanche network uses AVAX for transaction fees, staking, and governance. Contrarily, BNB is mainly used to lower trading costs on the Binance exchange and take part in its token launchpad.
Cardano uses the Ouroboros PoS-based consensus process, whereas AVAX uses the Avalanche consensus. High scalability and energy efficiency are both goals.
Both AVAX and Cardano support decentralized apps and smart contracts. Avalanche started with support for smart contracts, whereas Cardano’s capabilities were added afterward.
In order to involve the community in decision-making processes, both platforms use governance systems.
Due to its distinct consensus process, Avalanche, which provides high throughput, low latency, and scalable infrastructure, AVAX stands out in the cryptocurrency field. It is positioned as a platform for creating decentralized applications and interacting with other blockchain networks due to its support for smart contracts and emphasis on interoperability. However, before making any decisions regarding an investment or technological consideration, conducting an in-depth study and evaluating each project’s basics, community support, adoption, and future development plans is essential.