AVAX
AVAX is the native cryptocurrency of the Avalanche blockchain, a highly scalable and eco-friendly Layer-1 platform designed for decentralized applications (dApps), custom blockchains, and digital assets. Launched by Ava Labs in 2020, Avalanche focuses on high throughput, low latency, and energy efficiency, making it ideal for DeFi, NFTs, and enterprise applications.
Key Features of AVAX:
- Multi-Chain Architecture:
Avalanche comprises three integrated chains:
- X-Chain: For asset creation and transfers.
- C-Chain: Supports smart contracts via the Ethereum Virtual Machine (EVM).
- P-Chain: Manages validators and custom subnets.
- Subnets for Customization:
Developers can build customized blockchains (Subnets) to meet specific use cases without impacting the main network’s performance. - High Speed and Scalability:
Avalanche processes 4,500+ transactions per second (TPS) with finality in less than one second. - Staking and Governance:
Users can stake AVAX to secure the network and participate in governance by voting on protocol changes. - Eco-Friendly Consensus:
Avalanche uses a proof-of-stake (PoS) consensus mechanism, offering high efficiency with minimal energy consumption.
Uses of AVAX:
- Transaction Fees: Paying fees for transactions and smart contract executions.
- Staking Rewards: Users earn AVAX for staking and validating transactions.
- Governance: AVAX holders influence the network’s upgrades and decisions.
- DeFi and dApps: Powers decentralized finance platforms and applications built on Avalanche.