What is Avalanche? Avalanche Crypto Explained for Beginners

what is avalanche

What is Avalanche?

Avalanche is a “semi”-permissioned blockchain that bridges siloed public and private blockchains together to enable two things at once. It was designed to be customizable, scalable, and interoperable.

Everything on Avalanche is a subnet, and every chain is part of a subnet. Their consensus protocol was inherently designed to be immune to any type of 51% attack. In order to gain control of the network, an entity would need to acquire 80% of the network’s validators in order to influence such control.

Unlike other blockchains, the digitization of assets on Avalanche can obey special covenants, making it a suitable solution for adhering to legal compliance.

Use cases that the team are developing include Private Securities, ILOs, DEX’s, Synthetics, Stablecoins, Prediction Markets, Equities, Bonds, Debt, and Real Estate.

How did Avalanche Begin?

Avalanche $AVAX was founded by Dr. Emin Gun Sirer, a well-known expert on blockchains and digital currencies. Dr. Sirer is best known for his creation of a peer-to-peer, proof-of-work digital currency called Karma in 2003, six years before the “Bitcoin” whitepaper was released. 

Dr. Sirer has taught distributed ledger technology at Cornell University for over two decades. It’s here that the idea for Avalanche was created with a dozen other Cornell Alumni.

After theory and testing, Avalanche was launched in September 2020 after raising $60 Million in initial funding. $AVAX has a maximum supply of 720 Million, of which more than half are locked into the network for “Staking”.

How does Avalanche Work?

Avalanche is split into three separate blockchains that are combined to create the Avalanche Primary Network:

  1. The Platform Chain (P-Chain): The metadata chain. It coordinates validators, keeps track of active subnets, and allows for the creation of new subnets using the Snowman consensus protocol.
  2. The Exchange Chain (X-Chain): The default asset chain. It enables the creation of new assets, exchanging between assets, and cross-subnet transfers using the Avalanche consensus protocol.
  3. The Contract Chain (C-Chain): The default “Smart Contract” chain. It enables the creation of any Ethereum-compatible smart contracts using the Snowman consensus protocol.
avalanche crypto

Key Milestones for the Team

In November 2020 the Avalanche-Ethereum “Bridge” was completed, using ChainBridge as a two-way token bridge that enables seamless transfers between Avalanche and Ethereum. This enabled the full use of $ETH within decentralized applications on Avalanche by locking $WETH in the ChainBridge contract to mint an equivalent token on Avalanche. Through this, the Avalanche-X program was created in order to fund future development proposals put forth by the community.

Avalanche Protocol includes a burning mechanism that burns all fees collected using their platform. Soon they will introduce Quantum Resistance and Privacy Sub Networks in a future update of the protocol. Avalanche has partnerships in place with Reef Finance, SushiSwap, TrustSwap, Simplex, TrueUSD, Injective Protocol, Bitpanda, OKCOIN, Aleph.im, e-Money, bZx, Ankr, Voyager, FTX, Bitfinex, and dozens of other top-quality projects.

ld mockups1 1

Want to maximise the returns on your crypto investments?
Join The Free Wealth Mastery Report to Receive Weekly Insights on Altcoins, NFTs, Airdrops and DeFi!

Want to maximise the returns on your crypto investments? Join The Free Wealth Mastery Report to Receive Weekly Insights on Altcoins, NFTs, Airdrops and DeFi!

ld mockups1 1

Related Articles

Wealth Mastery #71

➡️ Issue 70 (November 11, 2021):
– Dopex options exchange review
– Blankos game guide
– 67% APY on Polygon’s Entropyfi
– Altcoin TA
– Defi insurance
– Metaverse NFTS
– Interview with Polka Dot based Parallel Finance

Wealth Mastery #79

Issue 79 (January 5th, 2022):
– I share my thoughts on taking profits, NFTs, Near Protocol, and the new round of parachain auctions on Polka Dot.
– Jesse has a deep dive for you on Injective Protocol.
– Defi Dad has a tutorial for you on how to earn big yields on Harmony.
– Rekt Capital has the latest technical analysis for you on the market.
– Sam has a report for you on NFT Daos.
– Matt has a report for you on Daos. (All about Daos this week!)
– The team from Decimated join us to discuss their hot play to earn game!
Hot new token sales.
– Rebecca has all of the latest news for you.
– Jesse has a ton of hot new airdrops for you.
– Rebecca breaks down this week’s trending coins.
– My latest portfolio updates.

Wealth Mastery #81

Issue 81 (January 19th, 2022):
– I share my thoughts on competition in the NFT market space and why we should all be watching lower market cap layer ones in 2022.
– Jesse has a deep dive for you on Avalanche’s Trader Joe
– Defi Dad has a tutorial for you on two very hot Avalanche based farms.
– Rekt Capital has the latest technical analysis for you on the market.
– Sam has a report for you on the best layer ones and twos for NFTs.
– Matt has a report for you on Solana gaming coins.
– The team from Numbers join us to discuss their decentralized photo networks.
Hot new token sales.
– Rebecca has all of the latest news for you.
– Jesse has a ton of hot new airdrops for you.
– Rebecca breaks down this week’s trending coins.
– My latest portfolio updates.

Wealth Mastery #72

Issue 72 (November 18, 2021):
– I share some V2 launches, defi opportunities, and low cap gems to keep an eye on in the Big Recap
– Defi dad tutorial on how to earn 1,315% on Fiat Dao.
– Rekt Capital talks about the Bitcoin dip.
– Matts tells you how and why you should use Ethereum’s Arbitrum.
– Sam has a report for you on gaming NFTs.
– Jesse has a review on the metaverse coin High Street
– Interview with the team from Wonder Hero.
– Latest token sales, cryptocurrency news, airdrops, trending coin report and my portfolio analysis.

Wealth Mastery #80

Issue 80 (January 12th, 2022):
– I share my thoughts on coins to watch and the recent Arbitrum drama.
– Jesse has a deep dive for you on the fantasy NFT card game Gem Guardian.
– Defi Dad has a tutorial for you on how to earn yield on Near.
– Rekt Capital has the latest technical analysis for you on the market.
– Sam has a report for you on ImmutableX and why it matters for NFTs.
– Matt has a report for you on stablecoins.
– The team from Rain Maker, a gaming infrastructure player, join us to discuss how they are working to bring more players into crypto gaming.
– Hot new token sales.
– Rebecca has all of the latest news for you.
– Jesse has a ton of hot new airdrops for you.
– Rebecca breaks down this week’s trending coins.
– My latest portfolio updates.