📝 Hello everyone, I am 𝟏𝟎, welcome back to the #区块链发展史 project investment research series. Today, we will focus on "Avalanche / AVAX".

Avalanche stands out among top-tier layer 1 blockchains for its unique combination of high throughput, low transaction latency, and exceptional scalability, while maintaining strong security.

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1. Understanding Avalanche

Avalanche is a blockchain platform created by Ava Labs and launched in 2020, designed to support the creation of custom blockchain networks and decentralized applications (DAPP). Its innovative consensus protocol and subnet infrastructure, coupled with the HyperSDK toolkit, enable Web3 developers to easily launch powerful custom blockchain solutions. Avalanche supports near-instant transaction completion, can process 4,500 transactions per second, and is an open source project where anyone can view and contribute to the platform's code.

Avalanche is often compared to the Ethereum blockchain, but Avalanche aims for greater interoperability, responsiveness, and scalability, provides similar toolkits and functionality to Ethereum, and integrates large decentralized projects and ecosystems.

Avalanche’s native token, $AVAX, operates on a proof-of-stake protocol that allows token holders to vote on allocation decisions, propose changes, and participate in governance. $AVAX, traded on the X-Chain, is the core token of the Avalanche blockchain network and has multiple uses, including staking, voting, and as a form of payment.

Overall, Avalanche is committed to providing a fast, versatile, secure, economical, and easy-to-use blockchain platform. Its native token $AVAX is used to pay transaction fees, protect the network, and serve as the basic accounting unit between blockchains.

2. How does Avalanche work?

Avalanche is a blockchain platform focused on smart contracts, supporting decentralized applications (dApps) and autonomous blockchains. It is unique in that it consists of three interoperable blockchains: the exchange chain (X-Chain), the contract chain (C-Chain), and the platform chain (P-Chain). This design helps optimize network performance and reduce blockchain limitations.

The exchange chain (X-Chain) is used to create and exchange digital assets (including AVAX tokens), and the contract chain (C-Chain) is used to create and execute smart contracts, supporting the Ethereum Virtual Machine (EVM) for cross-chain interoperability. The platform chain (P-Chain) is responsible for managing validators and coordinating the creation and operation of subnets.

By splitting into these three chains, Avalanche is able to optimize while maintaining flexibility, speed, and security, making it an ideal platform for individuals and businesses to develop a variety of applications.

3. Avalanche Consensus Mechanism

Avalanche uses a unique consensus protocol, called the Avalanche consensus mechanism, which is different from traditional PoS (proof of stake) and PoW (proof of work). In Avalanche, nodes do not need to participate in every decision of the entire network, but reach an agreement by repeatedly randomly sampling a small number of nodes. This process is similar to the gradual accumulation of snowflakes to form an avalanche, which starts locally and expands to the entire network, and finally confirms the validity of the transaction and the status of the system.

When a new transaction is generated, the verification node receives it and begins to verify the validity of the transaction. Subsequently, more nodes continue to create and verify smaller subsets, adding new blocks to the blockchain, and eventually most nodes in the entire system reach a consensus and confirm the legitimacy and status of the transaction.

Avalanche's iterative sampling method is designed to efficiently and securely reach consensus on transaction agreements and blockchain status while maintaining the decentralized nature of the system. This mechanism effectively improves the network's throughput and responsiveness, and is particularly suitable for application scenarios that need to process a large number of transactions.

IV. Avalanche Application Scenarios

When it comes to decentralized finance (DeFi), Avalanche shows great potential. This is because it has efficient performance and low transaction fees, making it an ideal choice for DeFi applications. On the Avalanche network, several DeFi projects such as Pangolin, Benqi, and Trader Joe have been successfully operating, attracting a large number of users and funds.

Cross-chain interoperability is one of the important development directions of blockchain technology, and Avalanche supports interoperability with other blockchain networks. Using tools such as Avalanche Bridge, users can easily transfer assets and data across chains. This function not only provides users with more choices and flexibility, but also promotes the integration and progress of the blockchain ecosystem.

In addition to public blockchains, Avalanche also provides private blockchain solutions for enterprises. With its subnet technology, enterprises can create dedicated blockchain networks to meet specific business needs, providing greater flexibility and customization for enterprise-level applications.

Avalanche also has important application value in the field of NFT (non-fungible token) and games. Due to its high performance and low transaction fees, many NFT projects and game developers choose to build and release products on Avalanche, which further attracts a large number of users and investors.

5. Tail

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