Avalanche: An Overview

Avalanche: An Overview

June 21, 2024

Overview

Avalanche (AVAX) is a blockchain platform by Ava Labs, utilizing Proof-of-Stake (PoS) for fast, low-cost transactions. It features subnetworks and multiple blockchains like X-Chain for assets, C-Chain for smart contracts, and P-Chain for validation. AVAX, its native token, handles fees, staking, and governance, with a capped supply of 720 million tokens. Recent news includes Konami using Avalanche for their NFT platform, Resella, simplifying NFT trading without external wallets.

4 min. read

4 min. read

4 min. read

What is Avalanche?

Avalanche (AVAX) is a blockchain platform created by Ava Labs. It was designed to address the limitations of existing blockchain networks by offering fast and cheap transactions through a Proof-of-Stake (PoS) consensus mechanism.  

How Does it Work?

Avalanche’s approach uses subnetworks and multiple built-in blockchains through a Proof-of-Stake consensus model. When a transaction is initiated, a validator node samples a small, random set of other validators to check for agreement. This sampling is repeated across validators until a consensus is reached.

Avalanche’s subnets allow users to create specialized chains with their own rules, similar to Polkadot’s parachains and Ethereum 2.0’s shards. These subnets must also validate Avalanche’s Primary Network. 

The platform employs three built-in blockchains: the Exchange Chain (X-Chain) for asset creation and exchange, the Contract Chain (C-Chain) for smart contracts, and the Platform Chain (P-Chain) for coordinating validators and managing subnets. This multi-chain approach enhances scalability and flexibility within the ecosystem.

Important Metrics of the Project

Avalanche is currently doing 4 TPS and has reached a maximum of 92 TPS. It can go up to 4,500 TPS in theory. AVAX, the native token, is used for transaction fees, staking, and governance, with a capped supply of 720 million tokens. Avalanche’s consensus mechanism allows for quick transaction executions of around less than two seconds. 

Latest Avalanche News

Konami Digital Entertainment, which is known as a Japanese gaming giant, recently announced that they will use the Avalanche blockchain to launch their NFT platform, Resella. The platform is designed to trade, create, and sell NFTs without the use of external Web3 wallets or complex cryptocurrency transactions.

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024