Alright, so first, what is Avalanche?
A question many in the crypto community ask a lot is what is Avalanche? Well, in a nutshell, Avalanche, ticker symbol AVA, is an open, programmable platform for decentralised finance (DeFi) applications. In short, it wants to be an umbrella platform of sorts for DeFi applications, which aims to dethrone Ethereum as the most widely used smart contract platform.
Avalanche has a high transaction throughput of 4,500 transactions per second (TPS), which is a key factor in its claim of being able to achieve higher scalability than Ethereum.
How Avalanche works
The Avalanche network technically consists of 3 blockchains. Firstly, the exchange chain or X-chain which hosts the native AVAX token (which we’ll talk more about in a bit) as well as other digital assets. The second is called the Platform Chain or P-chain, which is the metadata blockchain on Avalanche and coordinates validators, keeps track of active subnets, and enables the creation of new subnets.
The P-Chain implements the ‘Snowman consensus protocol’. The third and final blockchain is the Contract Chain or C-Chain, which allows for the creation of smart contracts using the C-Chain’s API. This all comes together to enable DApps to run the same way they do on Ethereum, but faster and for less cost.
Avalanche supports a veritable cornucopia of decentralized applications, integrations, and tools. Among these are Avado, Avalanche Explorer, the issuance and compliance platform for security tokens called Securitize, and decentralized exchange for NFTs built by the NFT-focused investment firm, Polyient Games. With these great projects and more exciting updates in the pipeline such as the Apricot Upgrade, Avalanche is well on the path to achieving great things.
Now that we know what Avalanche is, and what it does:
What’s is Avalanche aiming at?
According to the Founder of Avalanche and Associate Professor at Cornell University, Professor Emin Gün Sirer in an interview with Medium’s Encode Club, said that “Avalanche’s main idea is to make it possible to create digital assets that can be traded around the world at incredibly high speeds with very low latencies and in a transparent, fast fashion.” His team, which includes members like Kevin Sekniqi and Maofan “Ted” Yin, has collective experience from leading Fortune 500 finance and tech companies to high-growth blockchain companies.
With the ever-increasing popularity of cryptocurrency and blockchain, there are also more and more ecosystems, infrastructures, and systems being developed to find their own niches in the universe of crypto. We’ve heard about names like Ethereum, Cardano, Polkadot, and Solana. But one of the most interesting is Avalanche, especially when we are talking about it’s high-performance, scalable, customisable, and security features.
It targets: Building arbitrarily complex digital assets with custom rules, covenants also building application specific blockchains, spanning and launching highly scalable and decentralised applications.
What about building on the Avalanche ecosystem?
Avalanche calls itself a network of networks. What that essentially means is that it is not a single chain running a single type of block. It contains multiple subnets, each running one or more heterogeneous chains.
With such a roadmap and an excellent team behind it all, the possibility of making their plans a reality definitely seems within reach.