What is Avalanche?

Avalanche is a blockchain platform that uses a novel Proof of Stake (PoS) technique to address the blockchain trilemma of scalability, decentralization, and security.

Avalanche deploy smart contracts to operate decentralized applications (dApps) on its network, just like Ethereum does. Avalanche intends to increase blockchain interoperability by integrating a number of decentralized finance (DeFi) ecosystems, including well-established projects like Aave and Curve, since its smart contracts are written in the same Solidity language that Ethereum uses.

The Avalanche platform’s native token, AVAX, is utilized to enable transactions throughout its ecosystem. AVAX is used to facilitate network transactions by charging fees, distribute system rewards, and take part in governance.

How Does An Avalanche work?

Despite the complexity of its platform, Avalanche differs from other blockchain projects in three key ways: its consensus method, the usage of several built-in blockchains, and the incorporation of subnetworks.

Avalanche Agreement

A blockchain network needs to use a protocol that enables its nodes to agree, or attain consensus, in order to validate transactions and maintain security. The main strategies for coming to this consensus in the context of cryptocurrencies have been discussed as Proof of Work (PoW) vs. Proof of Stake (PoS).

The PoS base is expanded upon by the innovative consensus process used by Avalanche. When a user initiates a transaction, a validator node that samples a small, random selection of other validators receives it and checks for agreement. The validators repeat this sampling process, “gossiping” among themselves until agreement is reached.

In this manner, the message from one validator is passed to other validators, which sample further validators, which sample additional validators, and so on, until the entire system agrees on a result. A single transaction can ultimately result in an avalanche, just as a single snowflake can grow into a snowball.

As a node stakes its tokens over time, this is known as Proof of Uptime. If the node has historically behaved in accordance with the software’s regulations, this is known as Proof of Correctness.


Users of Avalanche can start customized chains that can function according to their own sets of rules. This technology is comparable to previous blockchain scaling techniques as the parachains in Polkadot and the shards in Ethereum 2.0.

Subnetworks (or subnets), which are collections of nodes that take part in verifying a certain set of blockchains, are responsible for reaching consensus on these chains. Avalanche’s Primary Network must also be verified by all subnet validators.

Integrated Blockchains

In order to circumvent the constraints of the blockchain trilemma, Avalanche is developed using three distinct blockchains. Each of these chains can be traversed by digital assets to carry out various ecosystem-wide tasks.

• The default blockchain on which assets are created and traded is the Exchange Chain (X-Chain). This includes the AVAX native token of Avalanche.

• Smart contracts can be written and carried out via the Contract Chain (C-Chain). The Ethereum Virtual Machine serves as the foundation for Avalanche, allowing for cross-chain interoperability to benefit smart contracts.

• The Platform Chain (P-Chain) manages subnets and facilitates the coordination of validators.

Leave a Reply