The cryptocurrency industry was revolutionized by the arrival of Ethereum in 2015. This smart contract platform increased the use of technology so that people can create their tokens. Ethereum is widely considered to have been the catalyst of the 2017-2018 bull run, allowing many tokens to see the light of day.
However, Ethereum’s popularity has also caused it some issues in the long run. Its network has been congested multiple times, and fees have been known to skyrocket at times of high frequency. This lack of scalability has pushed developers to create new, more sustainable layer-1 solutions like Avalanche.
In this article, we take a look at both Avalanche and Ethereum and compare their fundamentals. This should give you a good idea of whether AVAX can someday overtake ETH. Read on to learn if you should swap AVAX to ETH and stick with the current industry leader.
Avalanche Blockchain Capabilities
Avalanche facilitates the creation of custom blockchains, tokens, and smart contracts. It’s specifically targeted to become a direct rival to Ethereum by doing everything it is capable of but more efficiently.
Hence, Avalanche is highly scalable from the get-go. It can process up to 6,500 transactions per second. To achieve this, Avalanche’s network is formed by three distinct chains: the X-Chain, C-Chain, and P-Chain.
Each has a different purpose and consensus mechanism that solidifies its usage. X-Chain serves to receive funds, C-chain is used for dApps, and P-Chain is used for staking and validator rewards. This triumvirate of chains allows the Avalanche network to remain efficient in every aspect, without any of these usages overlapping.
Create Solidity-Compatible dApps
The Avalanche C-chain is compatible with the Solidity programming language, which allows Ethereum developers to easily adapt their applications. It has been built with the goal to allow devs to port apps without having to learn new code.
Launch Custom Blockchains
A unique feature of Avalanche is the capability to create standalone blockchains. Developers can build unique virtual machines that fit their particular needs, increasing efficiency considerably.
Become One of the Validators
Finally, the P-Chain allows anyone to become a validator with minimal investment in hardware. The chain provides high security while allowing on-the-fly staking and locking AVAX tokens.
Ethereum Blockchain Capabilities
Ethereum is the first smart contract platform of its kind. This pioneering status allowed it to become the incontestable leader in the industry of Defi and NFTs. While its current PoW consensus mechanism scales poorly, the chain is undergoing a Merge towards a much more sustainable PoS model.
This should allow it to rival Avalanche in terms of transaction throughput and provide cost-effective solutions for microtransactions beginning September 2022.
DAOs and dApps
The main use case for Ethereum is the capability to deploy decentralized applications. These can be used in various ways — financial apps, games, or NFTs. The chain also allows the creation of decentralized autonomous organizations that use ETH for voting.
The Ethereum Virtual Machine (EVM) is at the heart of the blockchain. It processes all smart contract interactions and provides a platform for compatible blockchains to interact with it, such as layer- 2 solutions like Polygon, Arbitrum, or Optimism.
The smart contracts are the core functionality of Ethereum, as they allow to automation of the functioning of the blockchain. They also enable the creation of token standards that provide devs with the means to generate ERC-20 fungible tokens and ERC-721 NFTs.
Avalanche is a great addition to the blockchain space. It does a lot of things right and has proven that its scalability is future-proof. Ethereum is a behemoth in the blockchain industry. What’s more, with the upcoming Ethereum Merge, its value will certainly rise. This will provide more room for mass adoption of the platform. Converting AVAX to ETH on an anonymous