What is Avalanche (AVAX)?

Deep Dive

1. Purpose and use

Avalanche is a Layer 1 blockchain platform: a base network where applications can run directly. Developers can build smart contracts and services on it, rather than creating an entirely new blockchain from scratch. Its Ethereum-compatible C-Chain supports familiar smart-contract applications. (Avalanche overview)

2. Technology and architecture

Avalanche separates functions across chains: the C-Chain handles smart contracts, the X-Chain supports digital assets, and the P-Chain coordinates validators and custom networks. Developers can also create customizable Avalanche L1s, with their own rules and validator arrangements. This lets applications tailor a network to their needs, while connecting it to the wider Avalanche ecosystem.

3. AVAX token

AVAX pays network fees and can be staked by validators, who help confirm transactions and maintain network security. Some transaction fees are burned, meaning they are permanently removed from circulation. (Avalanche token guide)

Conclusion

Avalanche is customizable blockchain infrastructure for applications, while AVAX is the token used for fees and network security. How well can its custom networks serve applications that need their own rules and infrastructure?