Avalanche

What is Avalanche?

Avalanche is a blockchain platform whose main network went live in 2020. It was developed by Ava Labs, a company co-founded by computer scientist Emin Gün Sirer, building on research into a new family of consensus methods.

Its native coin is AVAX. It is used to pay fees and to stake on the network. Avalanche is designed so that projects can also launch their own blockchains that connect to it.

How does it work?

Avalanche uses proof of stake together with its own consensus method. Validators repeatedly ask small random groups of other validators which transaction they prefer, and quickly settle on the same answer. This lets the network confirm transactions fast.

The main network has several chains with different jobs. The best known is the C-Chain, which runs smart contracts and is compatible with Ethereum's software. Projects can also create their own blockchains, called Avalanche L1s, with their own rules.

Transaction fees paid in AVAX are burned, which removes them from supply permanently.

What is it used for?

AVAX and the Avalanche network are used for:

• Paying transaction fees on Avalanche
• Staking to run or support validators
• DeFi apps for trading, lending and borrowing
• Custom blockchains for games, businesses and institutions

Most everyday activity for beginners happens on the C-Chain, where wallets that support Ethereum-style networks can connect. AVAX can exist on more than one of Avalanche's chains, so moving it between them needs care. Choosing the wrong chain when withdrawing from an exchange is a common mistake, so always double-check the network before you confirm a transfer. Holders can also delegate AVAX to a validator to earn staking rewards, but delegated coins are locked for a set period.

Key facts

• Launched: 2020
• Creator: Ava Labs, co-founded by Emin Gün Sirer
• Consensus: Avalanche consensus with proof of stake
• Blockchain: its own network, Avalanche
• Supply: capped at 720 million AVAX