Avalanch or AVAX is one of the fastest-growing blockchains since 2021. With ELLIPAL's newest update 3.5.0, ELLIPAL users will now be able to store, transact, and trade AVAX securely on their ELLIPAL Cold Wallet and ELLIPAL App Wallet!
Learn more about Avalanch (AVAX)
Launched in 2020, Avalanche is a layer one blockchain that functions as a platform for decentralized applications and custom blockchain networks. Aiming to be the most popular smart contract blockchain, Avalanch is well known for being one of Ethereum’s biggest rivals.
Avalanch's biggest feature is its ability to have a high transaction speed of up to 6,500 transactions per second, while not sacrificing scalability.
The high transaction speed is made possible by Avalanche’s unique network architecture that consists of three independent blockchains: the X-Chain, C-Chain, and P-Chain. Each chain has a distinct purpose when it comes to validating transactions. As the work is spread out, AVAX can achieve must faster transaction speed.
Like Ethereum, Avalanche has been working on developing its ecosystem of DApps and Defi. Ethereum-based projects such as SushiSwap and TrueUSD have also integrated into AVAX.
More About The Three Blockchains of $AVAX
One issue with smart contract chains is the blockchain trilemma, which says that at a high degree of decentralization, the consequence of high gas fees will emerge. This is what happened in Ethereum.
Nevertheless, Avalanch solved this problem by creating three interoperable blockchains.
- The Exchange Chain (X-Chain): The first chain is made to create and exchange the native AVAX tokens and other assets. This is quite similar to Ethereum's ERC-20 standard and these tokens follow the same standardized rules.
- The Contract Chain (C-Chain): The second chain takes care of smart contracts and decentralized applications. It has what is called the Avalanche Virtual Machine which allows developers to fork EVM-compatible DApps.
- The Platform Chain (P-Chain): The third chain coordinates network validators, tracks active subnets, and enables new subnets creation. Subnets are sets of validators and each subnet can validate several blockchains. However, a blockchain can only be validated by one subnet.
This division of tasks between the three chains allows higher transaction speed without compromising on decentralization. Efficiency is increased and transactions are not limited to high gas fees and low speed.