Avalanche 101: The scalability solution

  • A virtual machine: How to process transactions.
  • A validator set: Who can process transactions. Protocol designers can determine the visibility and accessibility of the subnet.
  • The C-Chain is an Ethereum Virtual Machine (EVM) chain for smart contracts
  • The X-Chain is a UTXO-based chain for payments
  • The P-Chain is a custom chain for platform governance and validator setup
  1. Abstracted low-level complexity
  2. Instant access to liquidity
  3. Choice of gas token: Avalanche provides a consensus engine and manages communications between nodes, but you can also launch your own token for your subnet.
  • Staking. Users of the platform can set up a validator or delegate their tokens to stake and earn a passive income (~9%-11% return annually).
  • Payments. AVAX transfers value at scale and speed through the permissionless Avalanche network.
  • Utility. The creation of DeFi protocols, NFTs, and subnets will all use AVAX tokens (for network fees).

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pothu

pothu

Multi-chain maxi. Follow me to learn about NFTs, DeFi, and Crypto.