Avalanche is a Layer 0 Ecosystem made up of three key Blockchains each designed for specific tasks within a network. The Avalanche is specially designed with DeFi dApps and regulations in mind, focusing on security, low intervals & high capacity using two different compliance methods between a number of possible chains simultaneously. By creating an open-source, straightforward way to build both public and private blockchain Avalanche opens up a vast area of opportunities for developers to use custom Visual Equipment in an expandable way.
Avalanche is a Proof-of-Stake blockchain using the "Avalanche consensus mechanism." It is a blockchain network that promises a maximum transaction rate of 4,500 transactions per second (TPS) and a smart first contract platform that can guarantee transactions in less than one second. In contrast, Ethereum processes 15 to 30 transactions per second with a maximum of 1 minute. Avalanche is a highly efficient, customizable, and secure blockchain platform focused on building software - special blockchains, easy-to-break applications, and smart digital assets.
Ava Labs was built as an open-source programmable platform in 2018 by Emim Gun Sirer, a Turkish-American computer scientist and associate professor at Cornell. Ava Labs was established to develop the network to meet the complex needs of the financial industry. In March 2020, the AVA data source of the Avalanche consensus protocol became open-source and publicly available.
Avalanche has been supported by three investors: OSG Ventures, Leon Hillmann, and High Naut Capital. In September 2020, they issued the native AVAX token.
Avalanche possesses a number of new key elements from a few major differences from basic blockchains such as splitting key systems into three different chains, building an infrastructure layer (Layer 0) against the Layer 1 solution, and unique proof of stake compatibility algorithm. Avalanche believes that these approaches address the major challenges Ethereum currently faces in terms of measurement and proof of stack conversion that will take place in the development of ETH2 while also boasting down payment times for sub 1 second and transaction costs below $1.
The Avalanche network integrates multiple blockchains and uses the Proof of Stake approach to achieve a maximum transaction of more than 4,500 transactions per second.
The Avalanche Consensus Protocol is a family of four - Slush, Snowflake, Snowball, and Avalanche, these build on each other and are very secure in this process. In short, the Avalanche Consensus Protocol is a unique voting protocol based on "repeated random sub sampling". In this process, the verification nodes randomly ask for other validators until the network reaches a consensus and decides whether to accept or reject the incoming deal.
All validators are members of a Basic Network that includes three blockchains: Exchange Chain (X-Chain), Contract Chain (C-Chain), and Platform Chain (P-Chain).
Ø X-Chain - Exchange Chain
· Building of new assets and dealing of assets; a large entry point for the AVAX Ecosystem. This blockchain is an Avalanche Virtual Machine (AVM) machine
· Used for: Creating new AVAX original assets, trading AVAX original assets.
Ø P-Chain - Platform Chain
· Participation and Communication of Subscribers and Creating Confirmation Subnets
· Used for Verification Series and Custom Chains
Ø C-Chain - Contract Chain
· Part of Avalanche's Ethereum Virtual Machine (EVM) aims to replicate Ethereum with a modified POS compliant approach to maximize transit and reduce transaction costs while providing developers with an Ethereum toolkit for building smart apps and contracts for AVAX users.
· Used for: dApp (s), ERC20, ERC721 (NFTs)
The use cases of AVAX tokens are:
· As payment for services performed on the avalanche network
· Making public and private blockchains
· Collaborating with smart contracts
· Performing cross-chain exchanges
· Provide or activate a guarantee to protect the avalanche network
· Serve as a basic currency for various Avalanche chains
Below is a list of some current projects in Avalanche.
· USDT Tether
· USDC USD Coin
· Pangolin
· Avalaunch
· Yield Yak
AVAX tokens fuel the network. Validators focus on these coins to protect the network while earning rewards for locking it off for a limited time. There are more than 220 million AVAX tokens currently available, as well as a top capped distribution of 720 million tokens. The genesis block contains 360 million AVAX tokens, while another 360 million tokens will be made over time. Unlike Bitcoin where funds go to miners, all funds in Avalanche are burned, which increases the shortage of tokens. The production of new AVAX tokens eliminates burns due to cost overruns.
DATE | NEWS/EVENTS | IMPACT |
11/05/2022 | Avalanche falls on worries that Terra's LFG will dump AVAX next | -30% Decrease |
14/12/2021 | Circle launched its stablecoin USD Coin (USDC) on the Avalanche blockchain network | +33% Increase |
16/11/2021 | Big Four Accounting Firm Deloitte Builds Partnership with Ava Labs To Use Avalanche Blockchain | +37% Increase |
16/08/2021 | Avalanche launches $180 million DeFi incentive program with Aave and Curve | +120% Increase |
11/02/2021 | Huobi Global has suspended investment and withdrawal of AVAX, due to the enhancement of the AVAX node | -20% Decrease |
Overall, Avalanche launched a promising blockchain network that already provides its participants and user base with a great resource. Unlike many other networks that focus on generating huge returns for their team members and early investors, Avalanche is focused on building its own ecosystem, creating a competitive DeFi atmosphere that seeks to deliver the best of all DeFi repetition found in other chains. As Avalanche continues to launch more apps and attract more users, it has the potential to present itself as one of the smart contract networks.
Avalanche