What is Avalanche (AVAX), and what sets it apart in the crypto world?
Avalanche is a scalable blockchain platform and one of the main rivals of Ethereum. It's well-known for quick transactions and developing decentralized applications (dApps).
How does Avalanche's consensus mechanism work, and why is it unique?
The blockchain has its own consensus mechanism called Avalanche consensus. It's unique its high throughput, energy efficiency, and adaptive security.
Is Avalanche primarily a cryptocurrency or a platform for building decentralized applications (DApps)?
Avalanche has its own cryptocurrency under the ticker AVAX. Beside that, the platform also serves as a service for developing DApps and custom blockchains. So, Avalanche is kind of universal.
Can I stake AVAX to earn rewards and participate in network security?
Users can stake their AVAX coins through Avalanche Wallet or on such crypto exchanges like Coinbase or Binance. By participating in the network security, you can also gain some rewards.
What's the significance of "subnets" in Avalanche's architecture?
Subnets are separate and sovereign networks which allow developers to create custom blockchains with their own rules, consensus mechanisms, and virtual machines within the Avalanche ecosystem.
How does Avalanche address the scalability challenges faced by many blockchain platforms?
Avalanche's architecture enables high throughput and scalability. It's built upon Snowball and Slush algorithms. The network also uses Directed Acyclic Graph (DAG) for processing several transactions simultaneously. Moreover, Avalanche supports the creation of custom blockchains that can interact with each other within the ecosystem, increasing compatibility.
Can I create my own blockchain on Avalanche, and what are the advantages?
Yes, you can, as the platform provides its users with special subnets. Every custom network can have its own set of rules, consenus mechanism, and virtual machine. Developers are welcome to use such option to present their unique solutions for any use cases.
Is AVAX's supply capped, and how does it affect its value?
Yes, it's capped at 720 million AVAX tokens. It can affect the coin's value depending on what the demand is.