A brief history of Avalanche
The Avalanche network was launched on September 21, 2020 and a year later it entered the TOP-10 in terms of capitalization of the CoinMarketCap rating. Avalanche is an open source platform for building decentralized applications. The goal of the developers was to solve the problem of synchronization between decentralized application protocols and create a product that can compete with Ethereum 2.0. Over time, the platform has become an ecosystem with its own unique solutions of algorithms and technologies.
Avalanche consists of two parts: the main network (Primary Network) and additional subnets (Subnet). The main network consists of 3 blockchains.
- Platform Chain (P-Chain) is a blockchain that stores metadata and controls validators, their actions and subnets.
- Contract Chain (C-Chain) is a blockchain that allows you to create smart contracts compatible with the Ethereum network. Converts existing dApps on the Ethereum blockchain to Avalanche. The network uses the native AVAX coin to pay transaction fees.
- Exchange Chain (E-Chain) is a blockchain that exchanges information between subnets and the creation of NFTs.
Avalanche subnets are analogous to a second layer solution. Any user can create an additional blockchain for decentralized applications by setting their own conditions. To do this, you will need to pay a commission of 0.01 AVAX.
Avalanche is one of the main competitors of Ethereum. The platform offers solutions to the blockchain trilemma. The trilemma consists of three pillars: scalability, decentralization, and security. Usually developers are forced to sacrifice one of the foundations. Avalanche implemented an idea similar to L2, sidechains and parachains.
Features of Avalanche
- Avalanche runs on the PoS (Proof of Stake) algorithm, so AVAX can be staked and rewarded.
- The blockchain is considered one of the fastest, with new blocks appearing every 4 seconds on average, and transaction processing can reach up to 4500 per second.
- The network has a large number of nodes — several thousand.
- The project has a rich roadmap, is actively developing and attracting new partners and investments.
Disadvantages of Avalanche
- Avalanche has a large number of competitors who also claim to be the main Ethereum "killer". Despite them, ETH remains in the top in terms of capitalization.