Avalanche (AVAX) Explained : What's with all the HYPE

in this video we're going to take a deep dive into avalanche and avalanche has exploded in popularity recently not just in price but also in terms of developers and community and ecosystem it's becoming rapidly one of the blockchains that you really have to look at now this is quite interesting because we've done a few videos covering large blockchains and one of the purposes and the points of doing this is so that you guys have a good understanding of what makes each blockchain tick how are they different from each other how is avalanche different from ethereum or maybe polygon solana etc something that's also interesting about avalanche is that it can survive more than a 51 attack we've been talking about this for some time about this consensus mechanisms and how a lot of networks if you can you know own 51 percent of it you can try to take over and attack the network avalanche is even more rigorous than that in fact if you want to control avalanche you need at least 80 to control a grand majority of a network in order to attack it 80 that's a lot so if you guys like content like this describing everything about blockchains make sure you check our other videos and we're gonna make future videos talking about how to use avalanche as well now starting off about avalanche in general avalanche has got a lot of attention from the developer community and it's largely because of how it's designed quite differently from everything else in essence it uses a three chain kind of a subnet architecture which we're going to talk about in quite a lot of detail and jimmy is going to help explain how that works we're also going to cover in this video the advantages and disadvantages of avalanche as well we're going to have our friend nate back and he's going to talk a little bit about that as well so anyways guys if you guys like deep dives upgrades make sure you click the like button down below and as always make sure you click the subscribe button and this is not financial advice this is you know and it's education education that's what it is so yeah take it as that [Music] so what is avalanche it is the first smart contracts platform that confirms transaction in under one second supports the entirety of the ethereum development toolkit and enables millions of independent validators to participate as food block producers a key difference between avalanche and other decentralized networks is a special consensus protocol instead of giving you a very long explanation basically it means nodes can talk to one another and agree on transactions that's it avalanche consensus combines the benefits of narcomoto consensus and all the benefits of classical consensus without sacrificing decentralization which they all claim to be but a very unique feature of avalon is that it's made up of free blockchains this will give developers maximum flexibility and control over the applications here's the scenario we have created first we have michael who represents x-chain michael is only responsible for the creation and transfer of avex and you can tell he's working very hard on drawing that apex token afx is used to pay for the transaction on the app launch network and these transaction fees are burned so if you think about it i'm like the accountant of this layer so i'm doing all the transfers for the tokens and not just for the avex token but for any other token that lives on avix the x chain will also be my responsibility to do the transfers too now this means that this chain is the fastest chain of them all because i need to process these transactions extra fast to make sure that these transfers are very like quickly delivered and without interruption and then we have c chain nathan on the avalanche network nathan is looking very smart and he's working very hard on his computer he is creating smart contracts and implementing a super fast ethereum virtual machine for the avalanche network this is where smart contracts are executed so it's a little bit slower than michael's x-chain but it does a lot of the heavy lifting this is where all of the applications go this is where defy lives and nfts and all of the things that you want to build are built on this chain and for the final chain we have jimmy as the p chain now the p chain is responsible for all the coordination in this network like for example staking coordinating communication amongst the validators and also creating custom subnets so she's essentially the boss and the project manager on the balls of everything [Music] so this is where everything combines together she's the glue that glues all the chains together and also if additional subnets are to be created she's also in charge of that so this is kind of the most important chain and the one that's kind of the backbone of everything here so that's kind of like the base outline so the kind of the three chain structure of avalanche and why it's a little bit special and different from everything else say for example projects like ethereum will rely on a single chain and the same thing will go with solana as well so this is kind of where it's a little bit different and so with avalanche you have three distinct separate chains that run at different speeds and for different functionalities now on top of this it's also possible to add additional extensions into avalanche and this is where it gets a little bit more special and a little bit more interesting by adding different subnets and even different networks they can take different types of code so say for example at its current point avalanche it uses ethereum virtual machine which means that all the contracts are compatible with ethereum but it's hypothetically possible in the future for them to add additional extensions to support different languages such as maybe rust or haskell so now it can be compatible with other blockchains like cardonal and have similar kind of performing features and strengths for contract code as well and i think this is one of the reasons why the developers and the ecosystem is growing around avalanche it's because of this extensibility and the way the module design of avalanche so that's how the avalanche network works but why has the price gone up so insanely recently avalanche launched avalanche rush which is 118 million liquidity mining incentive program decided to bring the top blue chip d5 protocols to the network they literally distributed 180 million worth of avex tokens over a period of three months to liquidity providers i have to say it was quite successful indeed because in less than a week they managed to attract some very top-tier d5 protocols like ave curve and sushi swap that are started on ethereum second reason is of course the avalanche bridge which is five times faster than the previous solution so user can transfer the funds without going through a centralized exchange the new avalanche bridge is a dramatic improvement and experience for users and developers across the community what's up guys nathan here for the advantages and disadvantages of this project advantage number one avalanche is evm compatible noted that not all of the ethereum killers are evm compatible but this is a huge benefit developers can seamlessly port their decentralized applications over from ethereum at a low cost this reduces friction for developers to learn a new programming language or build a completely new one from scratch it's not limited to just the evm though and migrating apps from ethereum any custom virtual machine can be used this allows projects from any blockchain to ultimately be easily ported over and benefit from the performance avalanche offers advantage number two being a validator on avalanche is fairly easy avalanche doesn't require expensive specialized hardware to participate in the network as a validator avalanche is an incredibly lightweight protocol so the minimum computer requirements are quite modest you just need to have six gigabytes of ram and 200 gigabytes of space the computer you already use yes right now or even the one gathering dust in the closet somewhere can likely run an avalanche node better yet nodes only process transactions when there are transactions to be validated so no wasted resources well they can't all be that good so there has to be some disadvantages and that's why you're watching this channel because we offer the most realistic analysis to our audience let's move on to the disadvantages so disadvantage number one there might be some concern over decentralization moving forward since the consensus for avalanche is so special not only can you stake your tokens to run a validator you can also delegate your tokens to somebody else to do it if avalanche is really going to take off the hardware requirement of 200 gigabytes of space that you see today is not going to be possible at all which means it's going to be a higher hardware requirement in the future if that's the case more and more people would stop running their nodes and start delegating to other people to do that which means you guessed it centralization disadvantage number two speed avalanche markets itself as the fastest smart contracts platform in the blockchain industry as measured by time to finality which is true to some extent since it claims to process 4 500 transactions per second when they deliberately compare themselves with ethereum 1.0 but if you compare avalanche with ethereum 2.0 ethereum can process up to a hundred thousand transactions per second or so on that matter and it's hard to see where avalanche stands if they market themselves as the fastest plus the inevitable threat of faulty and bug-filled smart contracts can potentially the network's performance going forward many blockchain projects struggle with similar issues and it will be up to the avalanche team to overcome these obstacles in the future to wrap things up there's no doubt there's a lot of excitement in the crypto space right now but of course obviously remember it's a volatile market and try to stay educated which is what really this channel is about it's about getting you the most facts and information and getting that to you in a very comprehensible and understandable format so make sure you click this like and subscribe button down below we're doing more breakdowns and use cases of this too a lot of the tutorials that we made can really help people understand how to actually use a blockchain so you can get the full idea of what people and how the ecosystem is going to shape up in the future so make sure you click the notification bell to see and get notified about new videos and also comment down below what you think about avalanche are there any strengths and weaknesses that you want us to cover in detail make sure you get that down below too also check out jimmy and nathan's independent channels as well nathan's got the captain crypto channel and jamie's got crypto gems so make sure you check out their channels they'll be linked down below and of course we'll see you later so we've also been reading a lot of your comments from the last video so let me do some replies and well i also want to thank you all for your support as well so first of all we have ketchup manchester sorry for butchering your name he says looking good mike hitting the gym is doing you well thanks guys man i've been spending like way too much time on the gym but that's where my live stream session is doing that and they've doing it was with me too and we've been just having a blast kind of dying together nate yeah we've been dying it's been brutal angela wang says solana gonna keep us warm in the winter hey it's a lot of summer it's a lot of sun so it's still hot in here you have e-ray gumu says can you talk about serum srm absolutely serum coming up next this is the hard one gauche says what are your predictions for seoul obviously i'm super biased because i've been holding some solana but i definitely see a lot of room to grow although something to be careful off of solana is that there are some recent investor unlocks that are coming up so you guys just want to be a little bit careful during those you know investment unlock phases there could be some people who are looking to cash out a little make a little bit of profit but overall long term i think they've got some really crazy potential all right guys shut up and take my money damn that's like something i would do it's like my style that's how the avalanche network works oh gosh sorry i flight mode

Channel: Boxmining

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Keywords: avalanche, avax, blockchain, cryptocurrency, explaind, what is avalanche, avax coin, avax price prediction, avax crypto, beginner, friendly, beginner friendly, detailed, detailed video, pros, cons, pros and cons, advantages, disadvantages, advantages and disadvantages, price, pumping, crypto news, recent updates, incentives, incentives program, crypto, avalanche crypto, latest, moon, moon price, moon time, rising, scenario, examples, projects, infrastructure, ecosystem, crypto ecosystem, banking, defi

Id: ZZBWECjQqVY

Length: 13min 39sec (819 seconds)

Published: Wed Oct 06 2021