Skip to main
Avalanche $AVAX Intro The Avalanche network follows Proof of Stake (PoS) fairly closely, with just a few differences that make it unique. The Avalanche model uses a form of sub-sampled voting, this means that small random subsets of validators are asked whether they think the transactions would be accepted or rejected. After the initial validation, something called network gossip happens. This is when participants exchange information back and forth continuously validating the transactions or denying them. A benefit to this is that in contrast to Proof of Work (PoW) and Proof of Stake (PoS), it doesn’t matter how many nodes there are or how many people there are on the network, consensus will be reached within a certain time frame. Another benefit is that this consensus model is very difficult to attack. Please allow me to explain. Bitcoin, you would need 51% of all the computers to attack the network in order to gain control. Ethereum 2.0 you would need 51% of all the staked tokens to attack the network in order to gain control. Avalanche you would need to control up to 80% of the network to perform an attack. How fast is Avalanche? Avalanche can handle up to 4500 TPS per Subnet and has a finality clock of less than 3 seconds. When comparing this to Bitcoin’s 7 TPS and a finality of an hour or even Ethereum with its 15 TPS and a 10 minute finality, it clearly has the advantage. The Avalanche Network infrastructure Avalanche has one primary network that has 3 built in blockchains. The first blockchain in the network is called the X-chain. The X-chain is specifically for creation, management, and transaction of tokens on the network. Second is the C-chain, which is for smart contracts. The C-chain is actually a copy of the Ethereum virtual machine, so you would be able to instantly “copy and paste” and start using Ethereum dapps on the avalanche network. Lastly we have the P-chain or the platform chain which is for managing subnets, coordinating all the validator nodes, and the staking mechanism. What are Subnets? Each Subnet is a new network in the Avalanche Ecosystem, in addition Subnets can have multiple blockchains just as the primary Avalanche network does. Each blockchain in a Subnet can have its own consensus model. This means that if you are creating one you could pick PoS or PoW, depending on what you need. Also each blockchain can have its own VM (virtual machine) meaning you would be able to copy Ethereum’s Virtual Machine much like the primary chain. Subnets can also be permissionless or permissioned, meaning that they can either be public or private blockchains. You might be asking yourself, “Why would I want to do this?” Let say you are a government or a business that wants the power of a blockchain without developing the groundwork, you could just add a Subnet in Avalanche’s Ecosystem. Another thing that a government or business might find beneficial is that you can change the rules for each blockchain in your network. You would be able to make it so that it would be complaint depending of your geopolitical needs. Let me give you an example to make this clearer. You could say that every validator in your subnet needs to be KYC complaint or maybe you want them to file certain tax information. The Avalanche network is built to be able to create and follow rules like this. To validate your own subnet, you are also contributing to the validation of the entire network via the primary 3 chains. The main primary network uses the Avalanche consensus model, however AVA Labs created a more powerful consensus model called the Snowman Protocol. The Snowman Protocol is the linearized version of Avalanche so that it may fit the needs of Ethereum’s Virtual Machine. In other words the Snowman Protocol has been optimized for smart contracts and high throughput. Now the Avalanche consensus model is more of a general use case where it’s implemented using a “DAG” structure, as seen on the X-chain. In summary, the Avalanche developers optimized the network and its various tools to be more adaptable. Tokenomics AVAX is the native coin to the Avalanche Network, which is used to pay for transactions fees, governance on the platform, and staking in Avalanche’s consensus process. AVAX has a max supply of 720 million, making it deflationary. AVA Labs pre-sold 127 million coins at launch, with most of those coins on a vesting schedule. Although most of these coins have been unlocked already, there are 2 more set to be unlocked. Option A2 will have 15% unlocked on December 3rd, 2021 and the last coins (another 15%) unlocked on March 3rd, 2022. The Avalanche team and the foundation were given around 20% of all coins. Incentives The Avalanche foundation announced that they would have a $180 million USD incentive program to get users to try out the network. This means that they are / were giving away $180 million USD for free as a form of advertising. This actually happens all the time in the DeFi space. The main purpose of the incentive program is to bring 2 major players the network, Curve Finance and Aave. Sources - https://www.avalabs.org/whitepapers - https://www.avax.network/ - https://whiteboardcrypto.com/ Not financial advice. DYOR. DCA. BTD. HODL. #unbankyourself #crypto #cryptocurrency #bitcoin #ethereum #cardano #public #publiccommunity #dyor #longterm #growth #learningtoinvest #learningaboutcrypto #possibilities #tech #technology #dyor #dca #btd #hodl #shibaarmy #whynot #aave #avax #avalanche #solana #sol
13
0
Own your future.
Build your portfolio.

All of your investing.
All in one place.

Invest in stocks, treasuries, ETFs, crypto, and alternative assets on Public. Transfer your account to Public and get up to $10,000.
Sign Up
Products
Contact Us
Check the background of this firm on FINRA’s BrokerCheck.

© Copyright 2023 Public Holdings, Inc. All Rights Reserved.

Market data powered by Xignite.

All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Product offerings and availability vary based on jurisdiction.

Stocks and ETFs.
Brokerage services for US-listed, registered securities are offered to self-directed customers by Open to the Public Investing, Inc. (“Open to the Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Open to Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered. Securities products offered by Open to the Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.

Alternative Assets.
Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933 (as amended) (“Regulation A”). This content is not investment advice. These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in an Open to the Public Investing brokerage account and are self-custodied by the purchaser. The issuers of these securities may be an affiliate of Public, and Public (or an affiliate) may earn fees when you purchase or sell Alternative Assets. For more information on risks and conflicts of interest, see these disclosures. An affiliate of Public may be “testing the waters” and considering making an offering of securities under Tier 2 of Regulation A. No money or other consideration is being solicited and, if sent in response, will not be accepted. No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC or as stated in the offering materials relating to an investment opportunity, as applicable. An indication of interest to purchase securities involves no obligation or commitment of any kind.

Crypto.
Cryptocurrency execution and custody services are provided by Bakkt Crypto Solutions LLC (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto Solutions LLC and Public Platform LLC. Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please ensure that you fully understand the risks involved before trading: Bakkt Crypto Disclosures.

Treasuries.
U.S. Treasuries (“T-Bill“) investing services on the Public Platform are offered by Jiko Securities, Inc. (“JSI”), a registered broker-dealer and member of FINRA & SIPC. See JSI’s FINRA BrokerCheck and Form CRS for further information. When you enable T-Bill investing on the Public platform, you open a separate brokerage account with JSI (the “Treasury Account“).

JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 “par value” (the T-bill’s value at maturity). T-bills are purchased at a discount to the par value and the T-bill’s yield represents the difference in price between the “par value” and the “discount price.” Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability - yield is subject to change. Past performance is not indicative of future performance. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. See Jiko U.S. Treasuries Risk Disclosures for further details.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

Banking services and bank accounts are offered by Jiko Bank, a division of Mid-Central National Bank, Member FDIC.

JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. None of these entities provide legal, tax, or accounting advice. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Commission-free trading of stocks and ETFs refers to $0 commissions for Open to the Public Investing self-directed individual cash brokerage accounts that trade the U.S.-listed, registered securities electronically during the Regular Trading Hours. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Open to the Public Investing’s Fee Schedule to learn more.

Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.