The snowfall (AVAX 25.60%) Cryptocurrencies skyrocketed on Wednesday thanks to a newly signed cooperation agreement the amazon (AMZN 5.81%) and its Amazon Web Services (AWS) cloud-computing arm. As of 4:30 pm ET, the cryptocurrency had gained 13.3% in 24 hours.
AWS requires a default blockchain platform to manage and execute smart contracts, which can transfer financial transactions and ownership based on real-time market data. The most obvious choice would be sector leaders and smart contract innovators Ethereum (ETH 4.24%)But going with a smaller and faster competitor instead of AWS keeps it interesting.
On Wednesday, Amazon and Ava Labs, the company that developed Avalanche, published blog posts explaining how developers using Avalanche tokens will now have access to a wide range of AWS resources and features.
“AWS is extremely valuable because it enables developers to go from scratch to in-production with dedicated infrastructure,” said John Wu, president of Ava Labs. “This is especially important for early-stage and start-up Web3 projects that really benefit from that blockchain-as-a-service model.”
The deal makes Ava Labs a member of the AWS Partner Network collection of technology providers, which puts the Avalanche name front and center when AWS-based developers are looking for technology solutions. Furthermore, Avalanche nodes can be deployed on a decentralized GovCloud network to qualify for federal government projects with strict security requirements.
This is AWS’s first official blockchain partnership, but it likely won’t be the last. Other smart contract platforms will likely follow in the months and years ahead, including AWS support for stablecoins, cross-chain development networks, value storage coins, and more. But Avalanche was the first, and it will gain a lot of development projects of high-speed smart contract platforms that could not go before it.
Despite Wednesday’s positive move, Avalanche’s token price is still down 84% from last year. This cryptocurrency (like almost all its peers) has a long way to go before it moves into the range of establishing a new all-time high. Still, this deal with an important Internet platform is a great step in the right direction.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. Anders Bylund has positions in Amazon.com and Ethereum The Motley Fool has positions in and recommends Amazon.com, Avalanche, and Ethereum Motley Fool has a revealing policy.