How Does Avalanche (AVAX) Work?

One of the newest blockchains that work on three subnets of different structures is Avalanche. The primary token for refueling in Avalanche is also called AVAX.

Avalanche with AVAX token is one of the solutions to develop and build decentralized applications with high speed and low cost so that it is compatible with Solidity. Using Avalanche, you can use public and private blockchains to develop your application. AVAX is the leading Avalanche coin that you can stack to perform transactions and increase network security to a standard level. Also, third-generation blockchains such as Avalanche have fewer hardware requirements for software development than other blockchains.

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Avalanche releases in 2018 with the AVAX token. The network launches as an open-source programmable platform supported by three major investors. IOSG Ventures, Leon Hillman, and High Naut Capital. The last funding phase dates back to July 15, 2020, which is still open. Avalanche has made two investments so far, the first being on June 44, 2021, in the Pontem network. Pontem is a decentralized application framework for Facebook’s Diem project. The second investment in Covalent was made on March 24, 2021. Covalent also examines the infrastructure problems of blockchain integration.

How Does Avalanche (AVAX) Work?

The Avalanche system includes new projects active in DeFi, digital security, NFT, Nodes, Oracle, StableCoin, merchant bots, and wallets. Avalanche Wallet also provides a secure, non-custodial structure for Avalanche assets that includes AVAX tokens. The network of this platform contains information such as trading volume, network activity, list of best assets, and current transactions in three chains: P-chain, X-chain, and C-chain. You can also use Avalanche Bridge to leverage a browser wallet such as Metamask or Coinbase wallet.

Smart Contract Deployment and Avalanche Sub-chains

Avalanche’s core network has three sub-chains: X-chain for trading, P-chain for the platform, and C-Chain for contracts. The primary purpose of the Avalanche network is to validate the internal blockchain network that each network pursues a specific goal.

The X-chain in Avalanche is the Consensus protocol, and the P-chain and C-chain are the Snowman consensus protocols. The X-chain is to build and execute transactions, the P-chain makes subnets and coordinates verifiers, and the C-chain executes EVM contracts and smart contracts.

In general, the Avalanche network helps you integrate decentralized Ethereum applications to verify transactions in a fraction of a second. The transaction confirmation process in Avalanche is fast, and more than several thousand transactions per second.

Customized Blockchain Launch Using Subnets

Avalanche also helps developers build virtual machines and instruct them on how to blockchain operations. Subnets play a vital role in this process. A subnet is a set of verifiers that must approve blocks in a blockchain. Each subnet confirms exactly one subnet, and this selection continues until the block completes.

Subnets help developers build permission blockchains by having control keys and a threshold. Each person needs to sign the threshold of the control keys to add a verifier to monitor their members under the network.

Minting ERC-20 Tokens

In addition to decentralized Ethereum applications and the implementation of validation nodes, the Avalanche network can be used to build ERC20 standard tokens. Creating an ERC20 token and extracting it to specific addresses is possible through Avalanche. The token is made in the C-chain Avalanche, and the process can be finalized with a smart contract..

Features of Avax

AVAX or Avalanche features include integration with EVM-compatible C-chains. If the development team wants to support ETH in Avalanche, it can do so through the C-chain. The Rosetta API implementation for C-chain can also be implemented so that Rosetta can serve as an open standard for simplifying development and blockchain processes.

The AVAX token supplies fuel to the network. Verifiers must stake these coins for network security when receiving a reward. There are more than 220 million AVAX in circulation and a ceiling of 720 million. The genesis block has more than 360 million AVAX, and the rest will be mint in the future and over time. Unlike Bitcoin, all costs in Avalanche are burned, which increases the scarcity of the AVAX token supply. Extract new AVAX tokens due to transaction costs that offset the burning.


One of the newest blockchains that work on three subnets of different structures is Avalanche. The primary token for refueling in Avalanche is also called AVAX. The network operates based on C-chain, X-chain, and P-chain infrastructures, each coordinated with the core. AVAX tokens can be used to develop decentralized Ethereum applications or to extract ERC20 tokens.

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