Avalanche platform
Avalanche is a heterogeneous blockchain network that rivals Ethereum. It’s well known because of its scalable solutions, interoperability, and transaction speeds. It can process about 4,500 transactions per second1. whereas Ethereum can only process about 30 transactions per second.2 It uses a novel approach utilizing three separate blockchains under its primary chain to achieve this.
At its core, Avalanche uses a consensus protocol called Avalanche consensus. Unlike other consensus protocols like proof-of-work or proof-of-stake, Avalanche consensus is a new family of protocols that relies on a randomized, leaderless, and asynchronous process to reach consensus.
This means that multiple validators can propose conflicting transactions simultaneously, and the network can reach a consensus quickly and efficiently. Avalanche also uses a unique architecture of three interrelated chains – x-Chain, p-Chain, and c-Chain. Together, these chains form a decentralized ecosystem that can support various use cases, such as cryptocurrency payments, asset tokenization, and smart contracts. In this article, we’ll look at what they are and how they operate.
What are those chains?
To better understand how these chains work, let’s use an analogy of a large company with multiple departments and employees to ease its operations.
The x-chain is like the company’s finance department, responsible for managing the company’s funds. The p-chain is like the Human Resources department, where the company’s personnel and resources will be managed. Finally, the c-chain is the project management department. They will work on delivering project results.
In summary, Avalanche’s x-Chain handles transactions, the p-Chain manages the validators and governance, and the c-Chain is responsible for creating and issuing new digital assets on the network. Together, they create a decentralized ecosystem that offers scalability, security, and flexibility for various use cases.
Avalanche Consensus
Even though the network follows proof-of-stake pretty closely, it has some modifications in it. Unlike the usual proof-of-stake or even PoW concepts, it doesn’t matter how many nodes there are to reach a consensus for a certain timeframe. They are using a form of subsampled voting, where participants will be randomly asked to validate things among a large number of nodes. That is, let a small, random subset of validators decide whether the transaction should be accepted or rejected. Due to this system, you would need at least 80% of the Avalanche network to perform an attack.
What are the differences and how do they work?
C chain 3
The C stands for the contract; hence, developers use this chain to create smart contracts for DApps. C chain addresses begin with 0x, the same as Ethereum since Avalanche implements an instance of the Ethereum Virtual Machine and enables DApp EVM compatibility. Snowman is a modified version of the Avalanche Consensus protocol and is the protocol that facilitates both the C-chain and the P-chain4.
P chain 5
The P chain stands for Platform, and it coordinates with network validators. It allows you to stake AVAX and serve as a validator for the network. If you are a validator or delegating to a validator, then your AVAX rewards will be received on this chain. Chain addresses begin with a “P-avax”
X chain 6
The X chain or Exchange chain is always used for sending and receiving funds. Transaction fees are paid in AVAX, and this chain uses the Avalanche Consensus protocol.
What are subnets?
Subnets are smaller networks within a larger network. They are created by subnetting, which divides a larger network into smaller, more manageable parts. Subnets improve network performance, security, and manageability by limiting the size of network segments, establishing separate security zones, and assigning each subnet a unique network address.7
Why Should You Use Avalanche for Your Own Blockchain Projects?
Avalanche consensus offers several advantages over other distributed ledger technology (DLT) protocols, such as proof-of-work (PoW), proof-of-stake (PoS), and delegated proof-of-stake (DPoS).
Avalanche consensus is faster and more scalable than traditional DLT protocols. By using a randomized, leaderless, and asynchronous process, Avalanche can achieve consensus quickly and efficiently. This allows for thousands of transactions per second to be processed on the network, compared to other blockchain platforms with lower transaction speeds.
Avalanche consensus provides a higher level of security and robustness to the network. The protocol ensures that all transactions are processed correctly and that validators are incentivized to act in the network’s best interest. This makes it more resistant to attacks such as 51% attacks, compared to other consensus protocols.
The ability to share the network through the p-Chain’s creation of subnets offers further scalability advantages. Sharding allows for increased throughput and reduced congestion on the network, enabling Avalanche to scale beyond the current limits of other blockchain platforms.
Avalanche consensus offers developers flexibility by allowing them to create and manage new digital assets on the network. The c-chain enables the creation of custom assets, such as tokens and smart contracts, which can be used for various use cases, such as DeFi, asset tokenization and more.
In summary, Avalanche Consensus offers several advantages over other DLT protocols, including speed, scalability, security, and flexibility. The ability to share the network and create custom assets through the p-Chain and c-Chain also provides further advantages that make Avalanche a promising platform for various use cases.
Potential impact on future
Avalanche has the potential to revolutionize the future of distributed ledger technology (DLT) by providing a faster, more scalable, and more secure platform for digital assets and applications. With its unique consensus protocol, sharding capabilities, and flexibility for creating custom assets, Avalanche is poised to become a leading player in the DLT space.
Its faster transaction speeds and scalability make it more suitable for high throughput use cases such as financial transactions, gaming, and supply chain management. Additionally, its security features, including resistance to 51% attacks, make it a more secure platform for hosting digital assets. As the platform continues to mature and more developers and businesses adopt it, Avalanche is likely to play a significant role in shaping the future of DLT.
Final Thoughts:
Avalanche is a promising platform for distributed ledger technology that offers several unique features and advantages over traditional blockchain protocols. Its consensus protocol, sharding capabilities, and flexibility for creating custom assets make it a highly scalable and secure platform for hosting digital assets and applications. As the platform continues to evolve and gain adoption, it will likely play a significant role in shaping the future of DLT.
- Based on the whitepaper of the Avalanche Native Token, p6-7: “https://assets.website-files.com/5d80307810123f5ffbb34d6e/6008d7bc56430d6b8792b8d1_Avalanche%20Native%20Token%20Dynamics.pdf“[↩]
- Worlcoin: “https://worldcoin.org/articles/whats-ethereum-2-0“[↩]
- C-Chain: “https://docs.avax.network/learn/avalanche/avalanche-platform#c-chain“[↩]
- https://support.avax.network/en/articles/4058299-what-is-the-snowman-consensus-protocol[↩]
- P-Chain: “https://docs.avax.network/learn/avalanche/avalanche-platform#p-chain“[↩]
- X-Chain: “https://docs.avax.network/learn/avalanche/avalanche-platform#x-chain“[↩]
- What is a subnet?, from Avalanche docs: “https://docs.avax.network/learn/avalanche/subnets-overview“[↩]
