What is Avalanche (AVAX) and how does it work?

Avalanche cryptocurrency Blockchains and Ethereum network

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What is Avalanche AVAX and how it works

Avalanche (AVAX) is a blockchain platform built for smart contracts, dApps, and subnets (customized blockchains). The network focuses on fast transactions, low fees, and efficient energy. AVAX, is Avalanche’s native token.

With its three-blockchain architecture and PoS consensus protocol, Avalanche can deliver high throughput, which will help the network grow without sacrificing its security or decentralization.

Avalanche is part of a group of smart contract platforms that compete with Ethereum, collectively referred to as “Ethereum killers.” As we note earlier, Ethereum is the second-largest crypto by market cap and was the first blockchain to enable smart contract functionality. Smart contracts are programmatic agreements that are trust less, i.e., they don’t require third-party authentication and can execute automatically when certain conditions are met.

The Ethereum network has been host to numerous complex apps for decentralized finance (DeFi), and non-fungible tokens (NFTs) also have been built on Ethereum. This has created network congestion as users compete to have their transactions included in the next block on the blockchain, which has resulted in higher gas fees. 

Because of this, cryptoprotocols have begun building on layer-2 solutions like Polygon. Avalanche wants to work around this need and instead have a layer-1 solution that can handle all that’s needed for this kind of blockchain.

Avalanche use three different blockchains to achieve this, which allows the platform toper form at a scale suitable for the broader internet. Each of the three blockchains performs a specialized task in the Avalanche ecosystem, whereas on most other blockchains, a single chain handles all the work.

Avalanche, blockchain platform ,Ethereum killers, blockchain, Bitcoin, Cryptocurrency, AVX token, smart contracts, DEFI, NFTs, Ethereum network, crypto protocol, crypto market

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