Launched by Ava Labs in 2020, Avalanche (AVAX) is a new-fashioned blockchain, also known as one of the most progressive “Ethereum killers”. The platform works on providing a solution to the infamous blockchain trilemma. This article provides a comprehensive overview of the Avalanche network, which positions itself as the fastest smart contract platform in the blockchain industry.
What is Avalanche (AVAX)?
Avalanche is widely used for building multi-functional dApps, including DeFi applications. The blockchain is designed to provide top-quality scalability and unmatched block finality time.
Before Avalanche first went mainnet, it managed to raise $42 mln in a token sale. The sale was finished in less than five hours. In April 2022, Avalanche was valued at $5.25 bln after it announced a $350 mln funding round - the investment underpinned the strong growth of the project.
N.B. Watch this video from Avalanche (AVAX) to find out more about this global network: What is avalanche
Avalanche is promising Solidity-compatible tools for developers at a much lower cost than Ethereum. Not only are the blockchain’s mechanisms up-to-date, but they are also scalable, secure, and eco-friendly.
How does Avalanche (AVAX) work?
What makes Avalanche a global network is its unique consensus mechanism, use of subnetworks, and implementation of multiple built-in blockchains.
In order to reach decentralization, each blockchain must find a way to guarantee decision-making processes among validators of the public ledger. These validators are globally distributed and are required to follow a specific protocol to reach a united consensus.
The Avalanche Consensus Protocol is based mainly on the Proof-of-Stake consensus. When a transaction is issued, it is then received by a validator, which then decides on its validity. If found eligible, the transaction is then evaluated by sets of validators via the repeated subsampling procedure until the final consensus is reached.
This way, validators can communicate with each other and handle a much greater workload. As one validator’s message is sent over to another validator, and the process is repeated again and again, it starts representing a snowball - a consensus with unmatched speed, high throughput, and top-quality security.
N.B. Refer to Avalanche’s official website to find out more about the platform’s utilization of a consensus protocol
Avalanche’s subnets are groups of nodes designed to validate transactions of designated platforms built within the AVAX ecosystem, including the primary network itself. The system is often compared to Polkadot’s parachains and Ethereum 2.0’s shards. The network currently supports 32 subnets in total.
To solve the trilemma problem of combining decentralization, security, and scalability, Avalanche has introduced three different chains to act as agents with an array of specifically designed features.
The X-Chain (Exchange Chain) is the default chain used for creating and exchanging digital assets, such as AVAX tokens.
The C-Chain (Contract Chain), based on the EVM functionality, is designed for building and executing smart contacts.
The P-Chain (Platform Chain) acts as a coordinator between validators and subnets.
Is Avalanche better than Solana?
Both Avalanche and Solana are highly performant, fast, and secure blockchains - both being used by some of the best-known developers in the industry. It is recommended to carefully study the roadmaps of these two projects before making the final decision.
Is Avalanche better than Ethereum?
At the time of writing, Avalanche carries a faster finality time and significantly lower transaction fees than Ethereum.
Where to buy Avalanche (AVAX)?
AVAX can be purchased via Binance, FTX, Huobi, Bitfinex, Coinbase, Crypto.com, etc.
Check out the full list of exchanges and compatible wallets here.
How many transactions can Avalanche do per second?
The platform claims it can handle an infinite number of TPS with the help of subnets. The blockchain is able to maintain 4,500 TPS on its own.
How much is the average transaction fee on Avalanche?
Dynamic transaction fees are paid in AVAX. The fees fluctuate from 0.001 to 1 AVAX. Look here for more details from the official Avalanche team.
What is the AVAX token?
Being the utility token of the platform, AVAX is a common determinator in the network’s ecosystem. The asset is not only used for handling various costs and securing the network, but it is also designed to provide participants with staking capabilities. Therefore, it is possible to receive rewards if you lock up AVAX tokens. It is, nevertheless, required to stake at least 2,000 AVAX to start earning passive income. At the same time, each delegator is obliged to delegate a minimum of 25 AVAX.
N.B. For more information on staking, please refer to this link
Avalanche-Ethereum bridge and how it works
In early 2021, Avalanche launched its first Bridge that enabled a two-way asset flow between Avalanche and Ethereum. The Bridge secured the platform’s success on the market and attracted new investors to the platform. Since then, the service has only grown bigger and expanded its features, creating innovative cross-chain interoperability.
To ensure seamless flow and increase liquidity, Wrapped AVAX has been implemented. WAVAX enables interoperability across Avalanche and Ethereum ecosystems. The ERC-20 standard token significantly simplifies the experience for AVAX holders. Asset transfers are carried out between X-Chain (Exchange Chain) and C-Chain (Contract Chain) via the Avalanche Wallet.
How to bridge from Ethereum to Avalanche
With the help of the Avalanche Bridge, users can transfer ERC-20 standard tokens created on Ethereum to Avalanche’s C-Chain and vice versa. To do that, you first need to connect your wallet using Metamask, Coinbase Wallet, or WalletConnect.
Once you have logged in to your wallet, choose the network you would like to transfer your assets from. Select your assets and the amount you want to transfer using the Bridge.
Choose Transfer and sign the transaction pop-up prompt. Wait for the transaction to complete on both networks. It can take anywhere from 30 seconds for Avalanche and around 10-15 minutes for Ethereum to process the transaction.
Before starting a transaction, make sure you have AVAX tokens in your wallet to pay for your transaction fee.
During the last few months, the cross-chain bridge trend has taken off in the finance world. The Avalanche network, being one of the most popular platforms among crypto holders, has also undergone a couple of upgrades and improvements. The Avalanche Bridge is now supported by multiple blockchains, allowing users to transfer their assets between them while also making Avalanche the prime figure in the process.
The bridge is built using Intel SGX Enclave technology, which, according to experts, is a breakthrough in secure and efficient computing. Moreover, transaction fees are now expected to be one of the lowest on the market.
In late September 2021, Binance launched the development process of its own bridge to Avalanche that will allow AVAX holders to skip the process of logging into their wallets entirely. By creating a BSC to AVAX bridge, it would be possible to transfer BEP2 or BEP20 tokens to the ERC-20 network and back in a direct way.
Avalanche (AVAX) is a rapidly growing smart contracts platform that focuses primarily on delivering fast speed and top-tier scalability. Hence why, the network is a go-to choice for many web3 developers, as the features and functionality that Avalanche provides remain among the most cutting-edge technologies in the blockchain industry.
If you want to integrate Avalanche endpoints into your projects, please log in to your GetBlock account or refer to GetBlock’s customer support page.