Avalanche Explained

Avalanche was born to create a unified market for the making and exchange of digital assets, capable of coordinating various specialized blockchains.

Avalanche (AVAX) is an open-source platform for decentralized application development. The Proof-of-Stake consensus mechanism allows thousands of validators to maintain and update the network while consuming as little energy as possible.

It aims to create a plug-and-play system that allows different platforms to take advantage of the innovative consensus system (Snowman Consensus Protocol), scalability, and ease of asset creation: the platform for platforms that allows a series of “sub-networks “(Subnet) to create a unified market.

A subnet is a dynamic set of validators that work together to reach a series of blockchains’ status consensus.

• Each blockchain is validated by a single subnet;

• A subnet can validate multiple blockchains;

• A node can be part of several subnets.

Each subnet validator must be a Primary Network validator by staking at least 2000 AVAX.

The Primary Network:

The Primary Network has 3 blockchains:

Platform Chain (P-Chain): This is the Avalanche infrastructure. It coordinates validators, keeps track of active subnets, and allows the creation of new subnets. The Snowman validation protocol is implemented thanks to the P-Chain. By connecting to the P-chain API, users can create new subnets, add validators to existing subnets and create new blockchains.

Contract Chain (C-Chain): The C-Chain allows the creation of smart contracts on the network through its APIs. The C-Chain is a version of the Ethereum Virtual Machine promoted by Avalanche.

Exchange Chain (X-Chain): This is s a decentralized platform that allows the creation and trading of Digital Assets. One of the assets present on the X-chain is AVAX, in fact, every time you want to execute a transaction in a blockchain on Avalanche, you pay commissions in AVAX. The X-Chain is part of the Avalanche Virtual Machine (AVM). The X-Chain’s APIs allow users to create and trade assets on the X-chain.

Avax Token

There is great demand for AVAX, the proprietary token of the Avalanche. Not all of the supply is in circulation, making it more expensive. The total supply should be 720,000,000 AVAX and right now the circulating supply is almost 40% of the total.

Projects on Avalanche

We have different projects: DEXs, Yield optimizers, Borrowing and Lending platforms.

About DEXs, the main protocol is Pangolin. The exchange offers the ability to trade crypto, which is hosted on Avalanche and Ethereum. Pangolin promises to be a fast and cheap way to trade these currencies, including its own governance token, PNG. Other DEXs are listed in the photo below.

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If you want to know more about Crypto Fundamentals, check out these other articles:

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