AVALANCHE (AVAX)


Avalanche is a platform for decentralised applications (DeFi), various financial instruments, trading and other services. It aims to become the most popular blockchain for smart contracts, with a higher transaction output of up to 6500 transactions per second. It has a unique architecture, with a network of three separate blockchains, each interoperable.

- Exchange Chain (X-Chain) is used to create and exchange native AVAX tokens and other assets. It uses the Avalanche consensus mechanism.

- The Contract Chain (C-Chain) is home to smart contracts and decentralised applications. It uses the Snowman consensus mechanism.

- The Platform Chain (P-Chain) coordinates network validators, monitors active subnets and allows the creation of new subnets. Each subnet can validate multiple blockchains, but can only validate one blockchain per subnet. It also uses the Snowman consensus mechanism. This division of computational tasks allows for higher throughput without compromising decentralisation. All nodes process and validate transactions using a so-called DAG protocol. Transactions are processed concurrently and random selection of validators ensures that transactions are correct. There are no blocks in this consensus mechanism, which allows for immediate finalisation, significantly improving the speed of the blockchain.