What is Avalanche (AVAX)?
Avalanche is a blockchain platform that uses a unique Proof of Stake (PoS) mechanism to overcome the blockchain trilemma of scalability, security, and decentralization.
Like Ethereum, Avalanche allows smart contracts to power decentralized applications (dApps) on its network. Avalanche intends to provide improved blockchain interoperability by integrating a variety of decentralized financial (DeFi) ecosystems, including well-established systems like Aave and Curve. Avalanche’s smart contracts use the solidity language already used by Ethereum.
• The Avalanche platform’s native token, AVAX, is used for sending transactions throughout its ecosystem.
• AVAX is a token that acts as a tool for distributing system expenses, participating in governance, and facilitating transactions on the network.
• It’s designed to help you manage your expenses more efficiently by providing an easy way to pay for them.
Avalanche’s architecture allows for the creation of new chains or can be used to connect to existing ones, such as Ethereum. Avalanche smart contracts allow for usage on the Avalance blockchain or in conjunction with other blockchains.
Here are some features that set Avalanche apart:
Coin development rate
The maximum number of AVAX tokens is 720 million. However, users of the AVAX cryptocurrency can choose how rapidly new coins are issued. AVAX holders can influence the rate of new currency creation by boosting the amount of AVAX delivered as payment for adding a new block to the Avalanche network.
Cost of the Transaction
Depending on the sort of transaction and the amount of network traffic Avalanche must deal with, other sales have different processing costs. All fees are destroyed, or taken out of circulation, to allow AVAX to become rarer over time. User voting decides the price of an Avalanche, and therefore AVAX rates fluctuate often.
Mechanism of Mutual Acquiescence
When you send a transaction to the Avalanche blockchain, it needs confirmation from an extensive series of small, random subsets of network members before it can be confirmed.
Avalanche’s unique validation process relies on the fact that all transactions are confirmed by multiple parties simultaneously.
Incentives for participation
The proof-of-stake medium primarily governs Avalanche. AVAX holders must share their AVAX or promise not to trade or sell it in exchange for the right to assist AVAX transactions.
How does the Avalanche platform work?
Avalanche’s world-leading feature is that it uses three blockchains instead of the conventional one. This architectural choice has a clever justification:
• Each blockchain in the Avalanche ecosystem consolidates on a specific function rather than having one chain manage everything.
• The Avalanche platform may provide the blockchain’s decentralization, security, and scalability requirements by dividing tasks across several chains.
Exchange Chain (X-Chain)
The Exchange Chain (X-Chain) is the blockchain that enables the creation and trading of Avalanche assets. AVAX, Avalanche’s native token, is now the most popular cryptocurrency on the network, while other decentralized exchange tokens JOE and PNG, aren’t far behind.
AVAX is used to pay transaction fees on the X-Chain.
Chain of Contracts (C-Chain)
The C-Chain is an innovative smart contract platform for the Avalanche platform compatible with the Ethereum Virtual Machine (EVM). Anyone may use Avalanche to deploy Ethereum smart contracts since it is EVM compliant. So what’s the big deal here? Avalanche is a new blockchain built on Ethereum, which means that inventors can continue using the same tools they were using before.
Because Avalanche is an Ethereum application, it will likely have a similar impact on the blockchain industry as other DeFi titans like Aave and Maker DAO.
Platform Chain (P-Chain)
These blockchains are known as subnets in Avalanche, with the P-Chain serving as the default subnet for everyone.
To manage the landscape of Avalanche subnets, the P-Chain keeps track of validators. However, subnets are also in charge of validating the P-Chain.
Each Avalanche subnet is a collection of validators that work together to resolve a Blockchain consensus state. Its initial concept is to create autonomous low-cost Blockchains supported by a highly sophisticated and secure Blockchain.
• With a subnet, anybody may create a Blockchain at a small cost while ensuring maximum security to avoid a 51% network attack.
• The newly created subnet will be built on top of the Avalanche Primary network and confirmed by Avalanche nodes.
• A knot can share resources across many subnets.
• As previously stated, each subnet has its specific use case and restrictions due to the nature of independent Blockchains.
• A subnet can create its native token for payment of gas figures. Builders can deploy NFT and Smart Contracts to any other POS(Proof-of-stake) EVM-compliant chain.
Why would you want to build on Avalanche?
Rapid confirmation and transaction speeds
The Avalanche consensus technique is unusual because it reaches transaction finality inside a single block, which usually takes 2 seconds on the C-Chain. Avalanche’s consensus method is a game-changer for blockchains.
The infinite number of validators
Decentralization increases as the number of validators on a network increases. One of the biggest problems with blockchain is how centralized it can be. The more validators on a network, the more decentralized it is, and the Avalanche consensus technique can maintain rapid block speeds while scaling to an infinite number of validators.
Subnet Interoperability in the Future
Most subnets will likely link to existing blockchains to bring new users. In contrast, native ecosystem interoperability is not currently available.
Avalanche (AVAX) is a cryptocurrency and blockchain technology that competes with Ethereum in terms of speed, scalability, and decentralization. The smart contracts platform from Avalanche enables both decentralized apps and independent blockchains. The Avalanche blockchain design allows for theoretically infinite blockchains, coins, NFTs, smart contracts, dApps, and more to be created. The intelligent design, use cases, and popularity will likely increase adoption exponentially over the coming years.
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