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What is Avalanche (AVAX)? - Introducing one of the most competent blockchain substructures

 

By Damian David Nov 05, 2022

 

 

What is Avalanche (AVAX)?

 

Avalanche is an open-source independent blockchain protocol with smart contract functionalities created to enable the development of decentralized applications (dApps) that'll offer high security, swift finality, and low latency. 

 

Avalanche is one of Ethereum's foremost competitors that structured its perks around the downsides of the Ethereum network. It aims to serve as an umbrella for sundry blockchain solutions. Avalanche blockchain is infinitely scalable and can be used as a strong technical foundation for blockchain startups.

 

Avalanche was developed in Ava Labs and launched in September 2020 by Emin Gün Sirer, Kevin Sekniqi and Maofan “Ted” Yin two years after it was proposed on the InterPlanetary File System (IPFS) in May 2018 by a pseudonymous group going by the name "Team Rocket".

 

 

How Does Avalanche Work?

 

Avalanche protocol is a heterogeneous virtual landscape also called the "primary network". The primary network is divided into three different blockchains namely; the Exchange Chain (X-Chain), the Platform Chain (P-Chain), and the Contract Chain (C-Chain). 

 

These three chains are independent to reduce the workload of the primary network. But they all communicate seamlessly with each other to reach a consensus and further maximize transactional output per second and improve latency on all the custom dApps, custom chains and assets that are stored in them. 

 

The Exchange Chain (X-Chain) which is a primary example of the Avalanche Virtual Machine (AVM) is part of the Avalanche primary network that is responsible for the creation of tokens alongside enabling the trade and swaps of said tokens on the Avalanche protocol. 

 

AVAX, the native coin of the Avalanche protocol, is an example of a token that was built and currently functioning on the Exchange Chain (X-Chain). All custom chains built on the Avalanche protocol will have their token (if they need one) deployed on the Exchange Chain (X-Chain).

 

The Platform Chain (P-Chain) which is a primary example of the Platform Virtual Machine (PVM) is the part of the Avalanche primary network that hosts custom chains. It enables the creation and deployment of custom chains and dApps on the Avalanche protocol.

 

The Platform Chain (P-Chain) primarily allows for the general customizability of the dApps and networks built on it. Platform-related operations like the creation and selection of validators, staking operations etc are handled by the Platform Chain (P-Chain).

 

The Contract Chain (C-Chain) which is a primary example of the Coreth Virtual Machine (CVM) is part of the Avalanche primary network that aids the creation of smart contracts written using the solidity programming language and further enables its execution.

 

The Contract Chain (C-Chain) is an implementation of the Ethereum Virtual Machine (EVM) which in essence means that an Ethereum smart contract can be built on it. It is also known as the default smart contract blockchain for the Avalanche protocol.

 

What Is A Virtual Machine?

 

Virtual Machines are the smart contracts, codes, frameworks and blueprint that guides a developer on how to build on a blockchain network. A virtual machine serves as a software platform that plays an important role in the general contents, functionality, latency, and economics of a blockchain environment. 

 

In the Avalanche Protocol, there are three types of Virtual Machines (VMs) namely; Coreth Virtual Machine (CVM) –which supports smart contract functionality and is EVM-compatible.

 

Platform Virtual Machine (PVM) –supports operations on staking and Subnets. Avalanche Virtual Machine –supports operations on Avalanche Native Tokens.

 

What are Subnetworks?

 

A "Subnet" or "Subnetwork" is a subset or group of Validators quorum in the Avalanche primary network that is responsible for the Validation of blocks in all the custom chains built on the Avalanche protocol.

 

Subnets in the Avalanche Protocol are independent because they decide on the parameters used to achieve consensus amongst themselves and these parameters include their fees, membership standards and token economics in general.

 

What Is Snowball In Avalanche Protocol?

 

Snowball is an algorithm that the Avalanche protocol utilizes to achieve consensus amongst its Validators. The algorithm works by leaning towards the majority consensus on every round of communication.

 

What is AVAX?

 

AVAX is the native utility coin of the Avalanche protocol launched in September 2020. It was built on the Exchange Chain (X-Chain) of the Avalanche protocol and is used for functions like fees payments,voting on key decisions, staking on the protocol and incentivizing validators and general participants of the network.

 

According to CoinMarketCap as of March 2023, one AVAX coin is valued at $15.22 with a total market cap of $4,921,673,385. There is a total supply of 720,000,000 AVAX coins and a circulating supply of 325,529,263 AVAX coins. You can buy AVAX coin on Binance, Bitfinex, Gate.io and Kucoin.

 

Is Avalanche Safe?

 

Yes, Avalanche is safe. Avalanche protocol uses a variant type of Proof-Of-Stake (PoS) consensus mechanism it tags as "Snowball". Snowball will still work properly even in adversarial conditions and is reportedly resilient to "51% attacks" on the blockchain.

 

Why Choose Avalanche?

 

Avalanche serves as a base layer for your decentralized applications (dApps). If you're looking to get the perks of the Ethereum blockchain without suffering its low throughput, low latency, high fees and low scalability then the Avalanche protocol is made specifically for you.

 

Avalanche uses a unique consensus protocol to aid it achieve finality in seconds, transaction per second (TPS) is at its maximal due to the three separate chains on the primary network of the Avalanche protocol. And with the AVAX coin, you can profit from the sundry opportunities available on the Avalanche Blockchain.