What Makes Avalanche Unique?

Launched in September 2020, Avalanche is a Layer-1 blockchain that functions as a platform for dApps and custom blockchain networks. As a rival to Ethereum, Avalanche aims to dethrone it as the best blockchain for smart contracts with its impressive 4,500 TPS (transactions per second) output without compromising on scalability nor security.

Most notably, the EVM (Ethereum Virtual Machine)-compatible Avalanche network boasts a unique architecture consisting of three individual blockchains. All three chains serve a unique role and work together to run the Avalanche network, instead of letting a single chain handle all transaction processing like other blockchains on the market. Specifically:

- X-Chain (exchange chain): Handles transactions. Has a fixed transaction fee of only 0.001 AVAX and utilizes directed acyclic graph (DAG) technology to optimize speed.

- P-Chain (platform chain): Handles staking and validator activities.

- C-Chain (contract chain): Handles smart contracts, DApps, and DeFi.

Users can swap AVAX between these three chains and they are secured and validated by the Primary Network, a special subnet. On Avalanche, users can build their own custom blockchain network that is seamlessly interoperable with the broader Avalanche ecosystem. Custom subnets need to be a member of the Primary Network by staking 2,000 AVAX.

For its consensus algorithm, Avalanche operates its own protocol called Snow that uses Proof-of-Stake (PoS) as the foundation. The Snow consensus protocol aims to balance transaction speed, network capacity, decentralization, energy efficiency, and security. The Avalanche team also claims that its network boasts the "lightest hardware requirements of any blockchain platform" and does not implement slashing, making it a very friendly PoS chain for validators.

How Did Avalanche Become Popular?

Avalanche is one of the most popular blockchains out there for DeFi, with a thriving ecosystem of applications. It is home to market-leading DeFi platforms including the lending protocol AAVE, SushiSwap DEX, and the first regulated stablecoin TrueUSD.

Thanks to its robust technical architecture and DeFi ecosystem, Avalanche has become one of the most popular blockchains for DApp developers. In 2020, Avalanche raised 42 million USD in its ICO in just 24 hours.

Avalanche's Technical Milestones and Why Moonstake Supports AVAX

At Moonstake, we work to support the most demanded coins on the market. Here are some key milestones of Avalanche so far:

- 800 network validators by January 2021, less than half a year since Mainnet launch.

- TVL increased significantly from early 2021 and peaked at 400 million USD before the market crash in May 2021.

- By Q1 2021, users have moved more than $100M in assets from Ethereum to Avalanche, including $8.2M within the first 24 hours.

- By late November 2022, Avalanche network had processed 450 million transactions total, a 1507% increase from one year ago.

- Over 200 DApp projects are currently available on Avalanche, with many projects being cross-chain thanks to the robust bridging ecosystem around Avalanche.

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