Avalanche is a blockchain platform launched in 2020, built around a goal of combining high transaction speed with strong decentralization, two properties that are often difficult to achieve together. It uses a novel consensus protocol that allows it to confirm transactions in a matter of seconds.
A distinguishing feature of Avalanche is its multi-chain structure, which separates the network into different chains for different purposes, including one specifically designed for creating custom blockchains, similar in spirit to Polkadot's parachain concept but built with a different underlying technical approach.
The native token, AVAX, is used to pay transaction fees, participate in staking to help secure the network, and serves as the base currency across the broader Avalanche ecosystem of applications.
Frequently Asked Questions
How is Avalanche different from Ethereum?
Avalanche uses a different consensus mechanism designed for very fast transaction finality and supports a multi-chain architecture, while Ethereum relies on a single main chain supplemented by separate scaling solutions built on top of it.
What is AVAX used for?
AVAX is used to pay for transactions on the network, to stake and help secure the blockchain, and as the primary currency across applications built within the Avalanche ecosystem.
