Avalanche Ecosystem

Avalanche is an open-source highly scalable ecosystem built for launching DeFi applications and enterprise blockchain deployments. Three blockchains make up its mainnet: the X-Chain, C-Chain, and P-Chain. Avalanche uses this unique structure to solve blockchain problems of achieving scalability, interoperability, and usability. Developers can create tailor-made application-specific blockchains and benefit from the platform’s revolutionary consensus.

Avalanche can confirm transactions in less than one second and also supports the full Ethereum development toolkit. It has the capacity for millions of independent validators to participate as full block producers using the Proof-of-Stake model. Thus, the platform offers unparalleled decentralization and speed.

AVAX is Avalanche’s native token. It is hard-capped and used to pay for fees and for staking.

What are AVAX key features and how does it work?

As mentioned, Avalanche has three distinct blockchains:

• The Exchange Chain (X-Chain) is used for managing digital assets. These assets can have different sets of rules that govern their behavior, fees are paid in AVAX.
• The Contract Chain (C-Chain) is smart contract compatible. Developers can create smart contracts for DApps. This chain allows developers to fork over EVM-compatible DApps as it uses a variation of the Ethereum Virtual Machine.
• The Platform Chain (P-Chain) is used for coordinating network validators. It also tracks subnets, or new subnets can be made, which are groups validators who provide consensus for customized blockchains.

The X-Chain uses the Avalanche consensus protocol. The C-Chain and the P-Chain both use the Snowman consensus protocol.

Avalanche Consensus Protocol is a combination of Nakamoto consensus and Classical consensus. Therefore, it combines the benefits of both systems, that is, robustness, scale, and decentralization of Nakamoto, with the speed, and efficiency of the classical protocol. 

Snowman is a chain-optimized consensus protocol with high throughput and is particularly good for smart contracts.

A subnet is a set of validators that validate a set of blockchains. A blockchain is validated by only one subnet, but a subnet can validate multiple blockchains. Different subnets can have different consensus mechanisms. For example, one subnet could validate a blockchain on Avalanche using Proof-of-Work, another could validate a blockchain using Proof-of-Stake.  A subnet manages its own membership and can be either private or public. Private subnets may require validators to have certain prerequisites, and the blockchain it validates is only accessible to its subnet membership. This is useful if the information on a blockchain needs to remain private.

There are multiple ways to access C-Chain. Firstly, since C-Chain deploys the same API as go-ethereum, all the familiar APIs that are available on Ethereum can be used on Avalanche. C-Chain is also accessible via MetaMask, this is done by creating a custom network on the MetaMask platform. Avalanche also has its own Public API, using the AvalancheGo nodes, which allow access to C-Chain.

Alternatively, users are able to create their own, fully decentralized, node to work with the C-Chain. This helps developers to avoid potential congestion and rate-limiting.

What can Avalanche be used for?

Avalanche was built with serving financial markets in mind. It has native support for easily creating and trading digital smart assets with a complex custom set of rules that define how the asset is handled and traded to ensure regulatory compliance.

Also, custom blockchains can be built on Avalanche that is tailor-made for a particular task. An individual blockchain that specializes in a particular field, for example, payments, smart contracts, or Internet of Things can be created. Applications that may require all of these characteristics can then interoperate seamlessly within the Avalanche platform, this ensures that each part performs optimally, rather than having to compromise on one.

Where can you buy AVAX?

AVAX can be bought on leading exchanges, with the most popular choices being Binance, OKEx, and KuCoin. More details about available CEXs and DEXs to purchase AVAX can be found here.