Avalanche AVAX

How does Avalanche work?

Avalanche uses a "subnet" architecture that divides the network into many independent blockchains. This allows Avalanche to process a large number of transactions in parallel, resulting in high throughput.

Avalanche's 3 Consensus Mechanisms

Avalanche uses a combination of 3 consensus mechanisms:

1. Snowman: This is the main consensus mechanism used in Avalanche. Snowman is based on Proof-of-Stake (PoS) and provides high security, scalability and energy efficiency.
2. Avalanche: This mechanism is used to achieve consensus among validators on the Avalanche mainnet. Avalanche uses a snow avalanche algorithm to reach consensus quickly and efficiently.
3. Frosty: This is a new consensus mechanism that is in development. Frosty will use Directed Acyclic Graph (DAG) to achieve consensus, allowing Avalanche to scale even further.

1. Snowman:

• How it works: Snowman uses a random selection algorithm to select a committee of validators for each transaction. A committee of validators votes on whether the transaction is valid.
• Advantages: Snowman provides high security since most validators would need to be compromised to attack the network. Snowman is also highly scalable as there is no limit to the number of validators.
• Disadvantages: Snowman can be a little slower than other consensus mechanisms as it takes time to select a committee of validators.

2. Avalanche:

• How it works: Avalanche uses a snow avalanche algorithm to reach consensus quickly and efficiently. The snow avalanche algorithm works by combining the votes of validators from different subnets.
• Pros: Avalanche is a very fast and efficient consensus engine. Avalanche is also highly scalable since the number of subnets is unlimited.
• Disadvantages: Avalanche may be slightly less secure than Snowman, as it only takes a majority of validators on the same subnet to be compromised to attack the network.

3. Frosty:

• How it works: Frosty uses DAG (Directed Acyclic Graph) to achieve consensus. A DAG is a data structure that allows transactions to occur in parallel.
• Pros: Frosty is a highly scalable and efficient consensus engine. Frosty may also be more secure than Snowman and Avalanche, since attacking the network would require compromising the majority of validators on multiple subnets.
• Disadvantages: Frosty is in development and has not yet been tested in the real world.

Avalanche uses a combination of 3 consensus mechanisms to ensure high security, scalability and efficiency. Snowman is the main consensus mechanism, Avalanche is the mechanism that is used to achieve consensus between validators on the main network, and Frosty is a new mechanism that is in development.

What benefits does Avalanche have?

• High throughput: Avalanche can process up to 4,500 transactions per second.
• Scalability: Avalanche can scale to millions of users.
• Security: Avalanche uses Proof-of-Stake (PoS) consensus, which is considered more secure than Proof-of-Work (PoW).
• Decentralization: Avalanche is a decentralized platform and is not controlled by any one organization.

Who created Avalanche?

Avalanche was founded by Emin Gun Sirer, a professor of computer science at Cornell University.

How to store AVAX?

AVAX can be stored in a hardware wallet such as Ledger or Trezor, or in a software wallet such as MetaMask.

What will the future of the Avalanche look like?

Avalanche has the potential to become one of the leading platforms for creating dApps and enterprise solutions. The Avalanche team is actively working to expand the functionality of the platform and attract new users.

What problems does Avalanche solve?

Avalanche solves several problems that other blockchains face, such as:

• Low Bandwidth: Bitcoin and Ethereum have limited bandwidth, which can lead to delays and high transaction fees.
• Scalability: Bitcoin and Ethereum cannot scale to millions of users.
• Security: Bitcoin uses PoW consensus, which is energy intensive and subject to 51% attacks.

What applications are already running on Avalanche?

Avalanche already runs many applications, such as:

• DeFi: Aave, Curve, SushiSwap
• NFT: Kalao, NFTrade
• Games: Crabada, Defi Kingdoms
• Enterprise: IBM, Deloitte, Amazon Web Services

How is AVAX used in enterprise solutions?

AVAX is used in enterprise solutions such as IBM Blockchain Platform, Deloitte Verify and Amazon Web Services (AWS) Marketplace. AVAX can be used to create dApps that can improve the efficiency and security of business processes.

What are the differences between Avalanche and other blockchain platforms?

Avalanche differs from other blockchain platforms due to its unique “subnetwork” architecture, which allows it to achieve high throughput and scalability. Avalanche also uses PoS consensus, which is considered more secure than PoW.

How to mine AVAX?

Mining AVAX directly is not possible as the platform uses Proof-of-Stake (PoS) consensus.

How to participate in AVAX staking?

There are two main ways to participate in AVAX staking:

• Running the validator: You will need to lock 2000 AVAX and run the validator software. This provides high returns, but requires technical knowledge and resources.
• Delegating AVAX to a validator: You can delegate your AVAX to a validator who will do the staking for you. This is a less profitable but simpler method.

What types of subnets are there in Avalanche?

Platform X: Basic subnet compatible with EVM (Ethereum Virtual Machine).

Platform P: A subnet optimized for applications that do not require EVM compatibility.

Subnets C: Subnets created and configured for specific purposes.