What is Avalanche? How does it work?

Dec 29,2022
What is Avalanche? How does it work?

In 2017, Ethereum became the most popular public chain. At that time, many projects called out to challenge Ethereum. After three years, some of these projects were slow to develop, some of them were stagnant, and most of them had long been lost to the public. Ethereum is still the best public chain in terms of ecology. However, in 2022, there will be a large number of public chains called Ethereum competitors, one of which is the avalanche agreement described in this article. So, what exactly is the avalanche agreement? How does it work? Next, let's have a look.

What is Avalanche?

The English name of the avalanche protocol is Avalanche, and the currency is AVAX. Avalanche protocol is an open source blockchain platform customized for decentralized finance (DeFi), which is characterized by enterprise level collaboration and high scalability.

In addition, the avalanche protocol is also the first to complete the determination of a smart contract platform within one second. This platform is applicable to all Ethereum development toolkits, and can enable millions of independent verifiers to participate as miners.

In addition to the application of sub second level determination, the freight volume of the avalanche protocol is several orders of magnitude higher than the existing blockchain (4500 transactions/second), and the safety threshold is also far higher than the 51% requirements of other blockchains.

A key difference between the avalanche protocol and other networks is the consensus system. Many people have always had a misunderstanding about the blockchain network: they think that the blockchain is slow and has low characteristics. In the final analysis, the lack of existing blockchain characteristics has caused a stereotyped impact on the public. Avalanche protocol uses a new consensus mode, which can ensure security, rapid determination and high throughput without sacrificing decentralization.

Avalanche Avalanche protocol advantages:

Avalanche Avalanche protocol has completed innovation and integration based on Nakamoto's consensus. In the process of verifying information, it does not need to check with the nodes of the whole network, as long as the majority of N nodes are randomly selected. Subsequently, the nodes of the whole network have been repeating this process. This type of verification between nodes, like the snowball rolling down the mountain, will roll larger and faster, so it is more large-scale, reliable and high-speed on the basis of decentralized network.

Avalanche is a new public chain driven by consensus. Through research, CICI of Hoo Tiger Symbol Research Institute found that, in fact, Avalanche can achieve higher performance, reliability and efficiency compared with other public chains such as BTC, Ethereum and Boka.

Avalanche can settle more than 1000 transactions per second, which is beyond the reach of BTC and Ethereum. For example, the delay of Bitcoin is at least 10 minutes, but according to our detection, even under the highly decentralized network conditions, the delay of the protocol itself can reach the order of 1.35 seconds for each transaction, which is comparable to the centralized settlement system, such as Alipay, WeChat, VISA, etc.

In terms of security, Avalanche avalanche protocol is more powerful. To compare Avalanche with Polkadot, start with Avalanche Protocol and GRANDPA. You can remove GRANDPA from Polkadot, replace it with Avalanche, and then completely discard NPoS. The avalanche protocol works regardless of the number of nodes. We are specific. The parallel chain can fix their slots for up to 24 months at a time, and renew them 18 months in advance with the same deposit. Basically, the parallel chain can receive 18 months' warning.

How does Avalanche work?

1. Consensus layer

Avalanche Agreement Avalanche's consensus agreement consists of two agreements, Avalanche and Snowman, enabling the Avalanche Agreement to have the advantages of both classical and Nakamoto consensus:


Unlike ordinary proof of workload or proof of equity, which requires a single node to deliver the processing results to other nodes for verification, the avalanche protocol enables all nodes to solve the verification transaction at the same time, and enables the verifier (who needs to pledge at least 2000 AVAX currencies to become a verifier) to mutually verify (directed and non cyclic). As long as a certain proportion of verification frequency is reached, the accuracy of the transaction can be verified statistically, and this method can be used to quickly implement and confirm the transaction.


The snowman consensus is specially designed for smart contracts. The snowman will sort transactions in a linear way to reduce the risk of being stuck or missing.

2. Blockchain layer

Avalanche is different from Ethereum in solving all transactions on one chain. Avalanche is composed of three blockchains. Each chain undertakes different tasks to achieve higher solution efficiency, including the exchange chain (X-Chain), platform chain (P-Chain) and contract chain (C-Chain):

1) X-Chain

The exchange chain is used to create new currencies or conduct currency trading, and the chain trading applies landslide consensus.

2) P-Chain

The platform chain is responsible for the verifier, the management subnet (Subnet) and the application of snowman consensus.

3) Contract Chain

Above the contract chain is the decentralized network layer. All decentralized applications are on this chain. The chain is also the most widely used by users. The snowman consensus is applied.

Speaking of this, I believe you have a certain understanding of what avalanche protocol is and how it works. In general, Avalanche does not have the features of ATOM or Solana at present. However, the Ava lab is taking all the right measures to ensure the positive development of Avalanche blockchain. With a large number of subsidies encouraging developers to create on the basis of Avalanche, and with successful marketing and active cooperation, the future of Avalanche looks very bright. However, only time can confirm whether Avalanche can truly surpass Ethereum in terms of market dominance.