Most DeFi projects use Layer 2 solutions to avoid network congestion and reduce Ethereum gas charges. This process may increase complexity, leading to security risks and vulnerabilities. In order to avoid these troubles, it is necessary to have a secure, decentralized blockchain that must be scalable in a long time. This is the difference between Avalanche and Ethereum. Avalanche is considered the fastest smart contract to date. The following is a brief description of Avalanche blockchain.

Avalanche is an open source blockchain platform developed by Ava Lab in New York. Avalanche is known as an extremely fast, low-cost and environment-friendly first layer protocol, which was created by a professor of computer science at Cornell University and his two doctoral students. The concept behind the avalanche was put forward by Professor Emin Gun Sirer in 2019, who claimed that this is the fastest blockchain and its end time is far better than Ethereum. Avalanche has huge scalability and amazing instant confirmation time, because it can easily handle up to 4500 transactions per second, while Ethereum's block confirmation time is 14 TPS.

The avalanche blockchain was officially launched at the end of 2020 and has successfully attracted a lot of attention. The total value of its agreement has soared to about 11.9 billion US dollars. This huge TVL makes it one of the leading blockchains that support DeFi applications and Ethereum, Terra and Coinsecurity intelligent chains. Avalanche's innovative DeFi space hosts some of the most popular Ethereum based protocols, such as Aave and SushiSwap. In addition, decentralized exchanges like Trader Joe, which have a liquidity pool of about $1.5 billion, and smart contract loan platforms like Benqi, which lock more than $1 billion, also operate on the avalanche blockchain.

Avalanche is not only the DeFi platform, but also a shining star in the growing meta space. Avalanche's fast and low-cost trading network is an ideal choice for next-generation blockchain games and virtual reality platforms.

Avalanche also uses consensus mechanisms to ensure decentralization. Just like any other blockchain, make decisions among the verifiers of its blockchain network. This mechanism is called the avalanche consensus agreement. Its concept was originally proposed by the Rockets, which is now Ava's laboratory in 2018. The consensus agreement aims to integrate the advantages of the other two agreements, namely the classic agreement and the Nakamoto agreement.

Nakamoto protocol: This is used by Nakamoto when developing Bitcoin. This consensus protocol is powerful and provides complete decentralization for the blockchain network, but it is very expensive and the transaction is delayed.

Classic protocol: it is used for Facebook's stable currency Diem, which is more efficient in cost and maintenance. Classic protocols save energy, but do not provide scalability or decentralization of the blockchain.

The combination of these two protocols helps the Avalanche consensus protocol become more scalable, powerful, sustainable and highly decentralized at the same time. In addition, it can help the avalanche network achieve high throughput, ensure lower latency, and resist all types of external attacks. Compared with the rival blockchain, avalanche works in a very unique way, because it uses three different chains to help different tasks in the avalanche ecosystem. The three chains include exchange chain, contract chain and platform chain.

Contract chain (C-chain)

The contract chain is conducive to the operation and operation of intelligent contracts on the avalanche blockchain. Smart contracts are an important aspect of Avalanche, allowing people to seamlessly develop their DeFi applications on them. In addition, this C-chain is also compatible with Ethereum virtual machines, allowing Ethereum based protocols to easily work on avalanches, benefiting from its powerful functions. The contract chain uses the snowman consensus protocol.

Exchange chain (X chain)

Exchange Chain uses Avalanche consensus protocol to help the transaction, creation and exchange of virtual assets on the Avalanche blockchain. Just as each transaction on Ethereum requires a certain amount of ETH, the Avalanche blockchain uses its native token, AVAX, to collect the gasoline fee of the transaction. The AVAX token and other tokens on the platform run through the X-chain.

Platform chain (P-chain)

Since different projects develop layer 2 solutions on Ethereum, anyone can also develop layer 1 or layer 2 blockchains on the Avalanche platform. The platform chain using the snowman consensus protocol helps to create these secondary chains or subnets on Avalanche and manage the coordination of the subnet verifiers. The subnet on Avalanche is exactly the same as the patch update in Ethereum 2.0.

The different chains of different tasks on the three processing platforms complement Avalanche's commitment to strict security and complete decentralization.

summary

The above is a brief introduction to Avalanche blockchain. Compared with Ethereum or other blockchains that have been in the encryption market for many years, this is still the early stage of the avalanche. Avalanche's high-speed processing speed, low-cost transactions, growing user base and the rapid transition from DeFi applications to Avalanche networks. Perhaps, it will soon become the ultimate choice for developing the meta universe platform, blockchain game or DeFi protocol.