We are pleased to announce the addition of Avalanche (AVAX) to the iTrustCapital platform. Start buying and selling AVAX in your Crypto IRA immediately!
Read more on AVAX below.
Avalanche is a smart contract-enabled platform created by a group of Cornell computer scientists led by Emin Gün Sirer. The goal of the team was to address scalability, decentralization, and security issues experienced by blockchains. AVAX’s main purpose is to host decentralized Apps and private blockchains called subnets. Avalanche uses the Ethereum Virtual Machine and Solidity language as some of its core infrastructure.
Avalanche uses a consensus protocol known as Proof of Stake (PoS). Consensus protocols are how blocks are verified and added to the blockchain. Proof of Stake differs from a protocol such as Proof of Work (PoW), which is used by Bitcoin and others. The PoS consensus protocol uses “validators”. These validators stake a set amount of their owned cryptocurrency (in this case: AVAX) and then use their computers to validate the correctness of transactions. Within the Avalanche model, validator nodes sample a small set of other validator nodes, who do the same to another set, and so on. This creates a “snowball” effect of agreement, or consensus, that eventually verifies the transaction with the entire system. When a validator completes a transaction, they receive rewards in the form of AVAX tokens. If they incorrectly validate, their stake is slashed.
Avalanche builds on Proof of Stake by using two additional scaling mechanisms to incentivize validator nodes to perform honestly. These are called Proof of Uptime and Proof of Correctness. Proof of Uptime scales rewards given to validators based on the amount of time they have been a validator node. Proof of Correctness scales validator rewards based on the historical accuracy of a node. In this way, Avalanche not only rewards validator nodes as other blockchains do, but increases the rewards based on ideal performance.
Avalanche, created and supported by Ava Labs, has a limited quantity of 720 million tokens. Half of these were created during its initial launch and distributed to investors, the team, and other shareholders. Additionally, all fees paid by users to carry out transactions are “burned” or deleted. This is different from how many blockchains use PoS, as typically fees are forwarded to the validator nodes. By using Proof of Uptime and Proof of Correctness, Avalanche intends to incentivize validators despite not paying them transaction fees. Burning fees increases the scarcity of AVAX tokens. This process is meant to offset the minting process to help the network’s longevity as Avalanche gains more users.
You can self-trade AVAX tax-free* in your iTrustCapital Dashboard Now.
Log-in To Your Account Today!
*Some taxes and conditions may apply.
This article is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any trading strategy.
iTrust Capital, Inc. is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrust Capital, Inc. is not associated with and has no direct relationship with Avalanche (AVAX). iTrust Capital, Inc. is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrust Capital, Inc. makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrust Capital, Inc. does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
iTrust Capital, Inc. makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrust Capital, Inc. disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
© 2022 iTrust Capital, Inc.All rights reserved.
Buy and Sell Crypto in your IRA anytime, anywhere.