What is the AVAX project
AVAX is the native cryptocurrency of the Avalanche blockchain . The latter is considered a rival blockchain of Ethereum because it is able to process transactions faster and at a lower cost.
AVAX being the native token of the Avalanche blockchain, is used to pay transaction processing fees but also to ensure network security thanks to the staking mechanism. Avalanche is indeed a Proof-of-Stake blockchain. Let us now try to go into a little more detail.
What is AVAX?
AVAX is, as we have already said, the native token of Avalanche or the indispensable cryptocurrency for processing transactions within the ecosystem. For more information, see also youngplatform.com/avax .
With this Token you can:
- Participate in the governance of the platform;
- Pay network transaction fees;
- Earn rewards through staking.
What is Avalanche
The Avalanche blockchain is capable of processing approximately 4500 transactions per second. It was launched in 2020, by the Ava Labs team and supports decentralized applications (dapps) and smart contracts (smart contracts). Ava Labs' goal is to create an alternative and functional ecosystem capable of rivaling Ethereum.
It uses a Proof-of-Stake consensus mechanism and its smart contracts are written in Solidity (the same language used by Ethereum) in this way it aims to create maximum interoperability between different sectors by integrating various DeFi ecosystems and projects.
The main purpose of the Avalanche network is to create a system that responds to the blockchain trilemma and is therefore at the same time: secure, decentralized and scalable.
So let's see some of its specific features:
- Interoperability: as we have already said, Avalanche puts interoperability first, therefore it hosts many cryptocurrencies and dapps originating from other blockchains;
- Speed: designed to be extremely fast and scalable thanks above all to its subnets;
- Usability: thanks to the two previous features, the Avalanche blockchain is very pleasant to use for the user
So let's try to understand how it is possible for this ecosystem to do all this and how the developers and creators of Avalanche (AVAX) have arrived at these results.
The system is built on the basis of three different blockchains, a solution designed to increase its speed and the scalability of the system:
- X-Chain: also known as an exchange chain, digital assets such as AVAX are created and exchanged here;
- C-Chain: also called contract chain, it allows the creation and execution of smart contracts.
- P-Chain: also called platform chain, it coordinates the validators and allows the creation and management of Avalanche subnets.
Finally, it should be noted that all digital assets on Avalanche can be moved across all three chains to perform different functions within the ecosystem.
The Avalanche subnets
The subnets of Avalanche, also called subnets, are also crucial for the speed of the platform and for its complete development and are potentially infinite. Each subnet or sidechain can in fact create other subnets.
In this way the entire ecosystem can continue to expand and provide ever more complex blockchain solutions. All users can potentially create an unlimited number of blockchains that are:
- Fully customized.
Here is a brief but comprehensive overview of the specific characteristics of the Avalanche blockchain, its crypto AVAX and why it has intrigued so many people within the crypto world.