Introduction

Avalanche (AVAX) is a decentralized, open-source blockchain platform launched in 2020 by Ava Labs. It was developed by a team of Cornell University researchers led by Emin Gün Sirer.

Avalanche is designed to solve the blockchain trilemma (scalability, security, decentralization) and offers near-instant transaction finality, high throughput, and low costs. It competes directly with Ethereum, Solana, and other smart contract platforms.

Technology

Avalanche Consensus

Avalanche uses a novel consensus algorithm that combines elements of classical and Nakamoto consensus. Validators repeatedly sample other validators and update their preference until reaching consensus. This allows for:

• Sub-second finality (typically under 2 seconds)
• Thousands of transactions per second
• High decentralization with low hardware requirements

Three-Chain Architecture

• X-Chain (Exchange): For creating and trading digital assets
• C-Chain (Contract): EVM-compatible smart contract platform
• P-Chain (Platform): Coordinates validators and manages subnets

Subnets

Subnets are customizable blockchains that can have their own rules, validators, and even virtual machines. This enables enterprise use cases, gaming blockchains, and application-specific chains while leveraging Avalanche's security.

Use Cases

• DeFi: Major protocols like Aave and Curve operate on Avalanche
• NFTs: Low-cost NFT creation and trading
• Gaming: Gaming subnets for dedicated game economies
• Enterprise: Custom subnets for institutional use

Notable partnerships include Deloitte for disaster relief, Amazon Web Services, and gaming companies building on subnets.

Where to Buy Avalanche

Investment Considerations

AVAX has utility in transaction fees (which are burned, creating deflationary pressure), staking rewards, and subnet creation. The platform's technical capabilities and enterprise adoption provide potential growth catalysts.

Learn more in our crypto investing basics guide.