What is Avalanche?
Avalanche is a smart contract platform with native coin AVAX, launched in 2020. It is distinguished by an architecture of multiple interconnected chains and the ability to create subnets — separate blockchains with their own rules.
How it works
The network uses an original consensus protocol: validators repeatedly query random samples of other nodes and quickly converge to a single decision, providing finality in 1–2 seconds. The main chain is compatible with the Ethereum virtual machine, so applications are easily ported. AVAX is needed for fees, staking, and launching subnets; part of the fees is burned.
Pros and cons
- Pros: fast finality, flexible subnets for companies and games, compatibility with the Ethereum ecosystem.
- Cons: high competition among smart contract platforms, liquidity fragmentation across subnets, volatility.