Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Cryptocurrency

Can Avalanche (AVAX) make money from Smart Contracts?

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Avalanche (AVAX) and Ava Labs could make money from smart contracts. I think Avalanche could be make money because it offers fast and scalable smart contracts and digital applications (DApps).

A smart contract or DApp is a digital robot that performs a task in the blockchain. For example, the smart contract in a stablecoin makes payment in fiat currency when you spend the token. Avalanche lets users build smart contracts using Remix and MetaMask.

They claim Avalanche is compatible with Solidity. That means developers can build many popular out-of-the-box solutions, including Remix, Truffle, and Tenderly, into Avalanche Smart Contracts. They also claim you can deploy an Avalanche Smart Contract for a 10th the price of an Ethereum Smart Contract. Yet, Avalanche claims its DApps can easily transfer Ethereum assets such as Ethereum tokens because the Ethereum Virtual Machine can run on Avalanche.

Avalanche claims to operate the fastest smart contracts platform. Speed is vital to the success of platforms because people want fast transactions. For example, people want instant payment in fiat currency when spend a stablecoin.

Avalanche claims to process 4,500 transactions per second

Avalanche claims its blockchain can process 4,500 transactions per second (TPS) and complete the average transaction in two seconds. In contrast, Ava Labs estimates Bitcoin (BTC) can only process seven TPS and takes up to one hour to process a transaction.

Meanwhile, Ava Labs estimates Ethereum (ETH) process 14 TPS and takes six minutes to complete the average transaction. In contrast, Ava Labs estimates Polkadot (DOT) can process 1,500 TPS and complete an average transaction in 60 seconds.

Notably, they claim Avalanche can scale to millions of validators to process transactions with minimal hardware. Uses for Avalanche include the construction of blockchains.

Speed makes Avalanche scalable because it allows the platform to process thousands of transactions at once. That means developers can use Avalanche to build decentralized exchanges and other large complex platforms.

Uses for Avalanche include decentralized finance (DeFi), asset issuance and trading, debt financing, digital identity verification, document tracking, lending, borrowing, decentralized exchanges, digital collectibles, non-fungible tokens, and credentials. Hence, there could be many Avalanche products that could make money in the real world.

Investing in Lawsuits

Ava Labs, the organization that built Avalanche, has built such a platform they call Ryval. Ryval allows individuals to invest in lawsuits or litigation. To explain, litigation costs enormous amounts of money. Yet some lawsuits can pay off handsomely.

Individuals can profit from litigation by putting up money to cover legal costs in exchange for a percentage of the lawsuit. Historically, litigation financing has only been available to lawyers and a small class of connected wealth investors.

The goal at Ryval is to allow everybody to invest in litigation financing. Ava Labs claims litigation financing is a $10 billion asset class that can generate returns of over 50%. However, Ryval is still under construction and not taking investors yet. But you can subscribe to their email and Twitter lists.

What Value does Avalanche (AVAX) have?

The name Avalanche (AVAX) appears to be a play on the name Ava Labs. Sorry hockey fans, there appears to be no relation to the Denver NHL franchise, the Colorado Avalanche.

Mr. Market, however, gives Avalanche some value. CoinMarketCap estimates the AVAX token was the eighth most trending cryptocurrency on  23 August 2021.

CoinMarketCap gave Avalanche a Coin Price of $46.0a Market Capitalization of $8.032 billion, a Fully Diluted Market Cap of $33.228 billion, and a 24-Hour Market Volume of $1.71 billion on 25 August 2021. They based those numbers on a Circulating Supply of 174.033 million AVAX, a Maximum Supply of 720 million AVAX, and a Total Supply of 387 million AVAX.

Can Avalanche turn Smart Contracts into a Lucrative Cryptocurrency?

I think Avalanche’s supposed capabilities justify those numbers. In particular, the scalability is attractive. However, there are many scalable blockchains out there these days, including EOS (EOS) and Solana (SOL).

Additionally, I think there will be an enormous market for blockchain marketplaces such as Ryval. In particular, I believe investment banks and other financial institutions will pay for those markets.

If you are seeking a cryptocurrency with enormous market potential. Avalanche is worth a look. This token could turn smart contracts into a lucrative cryptocurrency.