What went down is this?
The value of the cryptocurrency Avalanche (AVAX -5.83%) shot through the roof on Wednesday due to a newly-inked partnership agreement. They partner with the cloud-computing division of Amazon (AMZN 0.19%), known as Amazon Web Services (AWS). In the past 24 hours, the value of the cryptocurrency has increased by 13.3% as of 4:30 p.m. ET.
As a result, Amazon Web Services requires a default blockchain platform for managing and executing smart contracts. They can perform financial transactions and ownership transfers based on real-time market data. The decision that would have been the most obvious would have been Ethereum (ETH 0.11%). However, the leader of the field and the pioneer of smart contracts, AWS kept it intriguing by choosing a smaller and quicker competitor instead.
On Wednesday, Amazon and Ava Labs, the firm that developed Avalanche, released blog entries. Outlining how developers who use Avalanche tokens now have access to a wide range of Amazon Web Services assets and capabilities.
According to John Wu, President of Ava Labs. “AWS is extremely valuable because it speeds the development process. It allows developers to go from zero to in-production with dedicated infrastructure.” “Early stage and start-up Web3 projects, which benefit from that blockchain-as-a-service paradigm, should consider this to be of utmost importance.”
What’s Next with Cryptocurrency Avalanche?
Because of this agreement, Ava Labs became a member of the AWS Partner Network, a collection of technology providers. As a result, the word “Avalanche” is now prominently displayed whenever AWS-based developers search for technological solutions. In addition, Avalanche nodes can be placed within the restricted area of the GovCloud network to meet the stringent prerequisites for participation in projects sponsored by the federal government.
It is the first official blockchain relationship that AWS has entered into. Still, it is implausible that it will be the last. In the upcoming months and years, additional intelligent contract platforms will be expected to follow, as well as AWS support for stablecoins, cross-chain development networks, value storage coins, and more. But Avalanche was the first. They should help the high-speed smart contracts platform win a lot of development work that previously might have yet to be aimed in its favor.
Even with the favorable action on Wednesday, the price of an Avalanche token was still down by 84% last year. Like almost all of its competitors, this cryptocurrency still has ways to go before it can be considered a severe contender for establishing a new all-time high. Nevertheless, the agreement reached with a powerful online platform is a significant advance in the correct direction.