Avalanche (AVAX)

Avalanche is a layer one blockchain that acts as the basis for distributed apps and private blockchain networks. It is one of Ethereum's competitors, attempting to dethrone Ethereum as the most popular blockchain for smart contracts. It intends to accomplish this by providing a larger transaction output of up to 6,500 transactions per second while maintaining scalability.

This is made feasible by the distinctive architecture of Avalanche. The Avalanche network is made up of three separate blockchains: the X-Chain, the C-Chain, and the P-Chain. Each chain serves a specific purpose, which differs significantly from the approach taken by Bitcoin and Ethereum, which requires all nodes to validate all transactions. Avalanche blockchains utilise various consensus techniques depending on their use cases.

Avalanche was created by Ava Labs, which was formed by Cornell University professor Emin Gün Sirer and Cornell University computer science PhDs Kevin Sekniqi and Maofan "Ted" Yin. Gün Sirer is a cryptography research veteran, having created a hypothetical peer-to-peer virtual money six years before the Bitcoin whitepaper was released. He was also engaged in work on Bitcoin scaling solutions and Ethereum research prior to the infamous The DAO incident in 2016.

The whitepaper that resulted from that study led to the formation of Ava Labs in 2018. In February 2019, the startup closed a seed round with Polychain, Andreessen Horowitz, and Balaji Srinivasan as investors. Avalanche raised $42 million in less than 24 hours during their initial coin offering (ICO) in 2020.

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