Cryptocurrencies are in the thousands on the market, and each token is different from the rest. This difference enables each token to operate in its niche and gain value. Bitcoin has shaped itself as a store of wealth. It has also set the gold standard in the market. Other smaller tokens are developing new and promising strategies to get a part of the market. One of the tokens in the market is Avalanche. Development of the token took place in 2018 by Ava Labs in the United States of America.
Coordination between Ava Labs and the Avalanche Foundation, a non-profit based in Singapore. During the development, the project was able to develop over $60 million in ICOs. This, combined with the hundreds of millions the project raised during crypto VCs, made it one of the most valuable tokens. The project went live in December 2020 and has been operational since.
Although this is the case, the project is still under development. The token efficiency on the market is maintained by modifications built occasionally. This is similar to many other cryptocurrencies. “What makes Avalanche different from the rest is mainly its blockchain system.” Cryptocurrencies in the market have one blockchain technology or another crypto’s blockchain technology, and Avalanche has multiple blockchains. In total, the cryptocurrency has three blockchains. These serve different roles to smooth operations and avoid issues such as system crashes. The best thing about this system is that all the blockchains are secure under one validator. The three blockchains include:
The first is the Exchange blockchain. This blockchain is meant to produce all the native tokens used by investors, validators, and crypto adopters. The technology can leverage smart contracts to make transactions and investments easier. It also increases the amount investors make. The blockchain can process a total of 4500 transactions per second. This made it the main blockchain used by Avalanche.
Secondly, the platform chain, also known as P-chain, has the standard proof of stake. The other interesting fact is that it utilises the snowman consensus protocol in its operations. This is the blockchain tasked with coordinating the validators invested in Avalanche. It also allows for the creation of other custom blockchains known as Subnets. This blockchain can process 1500 transactions per second.
To sum up, the contract Chain or C-chain is the third blockchain in the setup. What makes cryptocurrency different from the rest of finances is decentralisation. Thus governments and organisations cannot use their power against the system. This is the blockchain that is developed to ensure that Avalanche is decentralised. This means that the Contract chain powers all decentralised applications of the cryptocurrency. This cryptocurrency can process 1500 transactions per second. It also utilises the same standard proof of stake as the platform chain.