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What is Avalanche Crypto (AVAX) Used For? by esmeesmith

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What is Avalanche Crypto (AVAX) Used For?

This section is a part of [Avalanche Guide](https://leofinance.io/@crypto-guides/what-is-avalanche-crypto-avax).  In this section we are going to check out what is Avalanche crypto (AVAX) used for. If you want to find out comparison between Ethereum and Avalanche then please check out - [Avalanche (AVAX) vs Ethereum (ETH)](https://leofinance.io/@esmeesmith/avalanche-avax-vs-ethereum-eth).

We are going to see the potential use cases and also the current available implementations of the Avalanche Blockchain. 

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![leo.png](https://i.imgur.com/UoMNInj.png)

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### 1. Use Case: Blockchain Interoperability

Like Polkadot, Avalanche has means to have interoperable chains under it's main chain. It is made up of Heterogeneous interoperable network of many subnets. This comes in handy for addressing future crypto and the industry networks as new problem set comes into the market which can't be addressed with existing subnet or chains under main chain. 

### 2. Use Case : Scalable Blockchain Service

Financial networks, markets and asset services require the blockchain to be scalable. Unlike ETH, you may find that avalanche makes use of the scalable subnet network of chains. This allows adjusting to the demands in the market and the transactions variance. Current usage scenario shows it is much more scalable than ETH for the asset and financial transactions. 

### 3. Use Case: Financial Gateway & DeFi

Avalanche has been proposed as a gateway for various financial services and the markets. A lot of interchain financial transfers and the asset transfers through DeFi and CeFi market would be possible using the AVAX. Unlike ETH and other smart chains, you would find AVAX would make this possible without much transfer fee between the two parties. This is also useful in the DeFi and CeFi market.

### 4. Use Case: Platform Development Support

Avalanche has a program called  Avalanche-X that is designed to create grants for the developers to create avalanche platform specific products. This would be for encouraging more developers to create products that could benefit platform users and investors without starving the developers. 

### 5. Use Case : Store Value

Though AVAX token itself does not have means to be used as a currency as of yet due to capped supply and inflation limitations. However the potential store value would be for the validators who stake the coins for the internetwork usage, DeFi and stakes. So that creates value in the network and market. 

### 6. Use Case: Web3 Development

Blockchains like Solana, Polkadot present themselves as a means to develop the web3 internet chains. Avalanche too has the features and means to become one of such chains. As it has interoperability, scalability and the customizablity for the development of the decentralized web. 

### 7. Use Case: Trading Assets

Avalanche was designed keeping the trading in mind. The complex rule sets for NFT, Digital assets and the market can be setup for each use case. This comes in handy when you want to run either CeFi or DeFi markets on the top of such chains. This also means regulation and compliance can be enforced in tradable assets market. 

### 8. Use Case: Cross Chain Bridge

We previously discussed the interoperability in the chain. However the Avalanche is capable of creating bridges onto the chains like Ethereum by making use of the external EVMs forming a bridge and the solution across such bridges and converters. In turn one can interact with chains like Bitcoin, Ethereum and other cryptos. 

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### Conclusion

Avalanche being one of the blockchains that has managed to achieve the higher number of transactions per second. It can be used to replace the existing chains which are rather slow and transaction wise expensive like Ethereum. Considering it has no limit on available subnets and also secure in and off chain connectivity, it can be used in many financial and non-financial products and dApps for addressing various use cases. 

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@esmeesmith/what-is-avalanche-crypto-avax-used-for)
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