$9.93

Avalanche is a layer one blockchain designed for decentralized applications and custom blockchain networks. It competes with Ethereum, aiming to surpass it as the leading smart contract platform by achieving higher throughput, up to 6,500 transactions per second, without sacrificing scalability. This is accomplished through its unique architecture, which splits the network into three distinct chains: the X-Chain, C-Chain, and P-Chain. Each chain serves a specific function, differing from the approach of Bitcoin and Ethereum where all nodes validate all transactions. Avalanche blockchains also utilize different consensus mechanisms based on their roles. Since its mainnet launch in 2020, Avalanche has grown its ecosystem, integrating projects like SushiSwap and TrueUSD, and continues to enhance interoperability with Ethereum through bridges.

Avalanche was created by Ava Labs, founded by Cornell University professor Emin Gün Sirer and PhD graduates Kevin Sekniqi and Maofan “Ted” Yin. Gün Sirer has a long history in cryptography, having conceptualized a peer-to-peer digital currency before Bitcoin's release. He also contributed to Bitcoin scaling research and Ethereum studies prior to the 2016 DAO hack. This work led to the whitepaper that established Ava Labs in 2018. The project raised seed funding in February 2019 from investors like Polychain, Andreessen Horowitz, and Balaji Srinivasan. In 2020, Avalanche completed its initial coin offering in under a day, securing $42 million.

Avalanche aims to address the blockchain trilemma, which states that achieving decentralization, security, and scalability simultaneously is challenging. This often leads to high fees, as seen on Ethereum. To tackle this, Avalanche uses three interoperable blockchains. The Exchange Chain (X-Chain) handles the creation and exchange of AVAX tokens and other assets, following standardized rules similar to ERC-20. The Contract Chain (C-Chain) supports smart contracts and DApps, using an Ethereum-compatible virtual machine. The Platform Chain (P-Chain) manages validators, tracks subnets, and enables their creation. This separation of tasks allows for higher throughput and efficiency.

The total supply of AVAX is capped at 720 million tokens. The distribution includes: 2.5% from the seed sale, with 10% released at mainnet launch and the remainder quarterly; 3.5% from the private sale, similarly released; 10% from the public sale, with 10% at launch and 15% quarterly over 18 months; 9.26% for the foundation over ten years; 7% for community endowment over twelve months; 0.27% for the testnet incentive program over one year; 5% for strategic partners over four years; 2.5% for airdrops over four years; 10% for the team over four years; and 50% for staking rewards. Staking AVAX yields an annual reward of 11.57%, with a minimum staking period of two weeks and a minimum of 2,000 AVAX.

AVAX trades on the Exchange Chain, which employs the Avalanche consensus mechanism. Unlike proof-of-work or proof-of-stake, this mechanism does not rely on a single leader to process transactions. Instead, all nodes validate transactions using a directed acyclic graph (DAG) protocol, allowing simultaneous processing. Validators randomly poll to confirm transactions with statistical certainty. Since there are no blocks, finality is immediate, enhancing the blockchain's speed significantly.

AVAX can be purchased on several cryptocurrency exchanges, including Binance, Bitfinex, Gate.io, and Kucoin.