Avalanche

Avalanche is an open, programmable smart contracts platform for decentralized programs. What does that mean? Like many decentralized protocols, Avalanche has its token known as AVAX, which is used to pay transaction fees and can be staked to secure the community.

Like Ethereum, Avalanche can energy a broad type of applications like stablecoins, Defi protocols (lending, financial savings, decentralized trading), and NFTs. Avalanche is also compatible with Solidity, the programming language utilized by the Ethereum network, which means builders from one of the largest and most engaged groups in crypto can construct on Avalanche and use it to install custom private or public blockchains as “subnets.” And while the Bitcoin blockchain can usually perform procedures around seven transactions per second, Avalanche claims to process over 4,500 transactions per second. How does Avalanche work?

Avalanche’s network includes 3 component blockchains: the Platform Chain (P-Chain), which coordinates validators and the creation of subnets, the C-Chain for the creation of smart contracts, and the X-Chain for dealing with and exchanging assets.

The native asset connecting the Avalanche community is the AVAX cryptocurrency. There will ever be 720 million AVAX coins in circulation, and AVAX can also be used in proposing and voting on future network upgrades.

Are you able to stake AVAX?

You can earn AVAX rewards through staking immediately on the Avalanche network (note: Coinbase does not presently permit staking directly on its platform), which facilitates security, validation, and governing Avalanche while allowing the following features:

• fast, peer-to-peer transactions
• Decentralized computation and storage
• the creation of recent “subnet” blockchains

Individuals become general community validators by staking their AVAX on the Avalanche Platform Chain (P-Chain). Contributors can also delegate their stake to another validator, who then earns a portion of their validator reward. You can additionally become a validator of specific subnet blockchains by staking AVAX.