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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
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