SINGAPORE, Dec 1, 2022 – (ACN Newswire) – Welcome to this edition of 101 article exploring one of the staking coins on Moonstake. This time, we’ll be looking at Avalanche and its native coin AVAX which has grown rapidly since its inception just a few years ago and is in the list of the most popular cryptocurrencies on the market.
What Makes Avalanche Unique?
Launched in September 2020, Avalanche is a Layer-1 blockchain that functions as a platform for dApps and custom blockchain networks. As a rival to Ethereum, Avalanche aims to dethrone it as the best blockchain for smart contracts with its impressive 4,500 TPS (transactions per second) output without compromising on scalability nor security.
Most notably, the EVM (Ethereum Virtual Machine)-compatible Avalanche network boasts a unique architecture consisting of three individual blockchains. All three chains serve a unique role and work together to run the Avalanche network, instead of letting a single chain handle all transaction processing like other blockchains on the market. Specifically:
– X-Chain (exchange chain): Handles transactions. Has a fixed transaction fee of only 0.001 AVAX and utilizes directed acyclic graph (DAG) technology to optimize speed.
– P-Chain (platform chain): Handles staking and validator activities.
– C-Chain (contract chain): Handles smart contracts, DApps, and DeFi.
Users can swap AVAX between these three chains and they are secured and validated by the Primary Network, a special subnet. On Avalanche, users can build their own custom blockchain network that is seamlessly interoperable with the broader Avalanche ecosystem. Custom subnets need to be a member of the Primary Network by staking 2,000 AVAX.
For its consensus algorithm, Avalanche operates its own protocol called Snow that uses Proof-of-Stake (PoS) as the foundation. The Snow consensus protocol aims to balance transaction speed, network capacity, decentralization, energy efficiency, and security. The Avalanche team also claims…