Frequently Asked Questions

Avalanche is an open-source, proof-of-stake blockchain ecosystem designed for high performance, supporting decentralized applications (dApps), smart contracts, and custom blockchain deployments. It emphasizes scalability, security, and decentralization and is often referred to as a "network of networks" for its ability to host multiple independent, interoperable L1 blockchains. Launched in 2020 by Ava Labs, it processes over 4,500 transactions per second (TPS) with sub-second finality and low fees, making it suitable for DeFi, gaming, RWAs (real-world assets), enterprise solutions, and more.

Avalanche originated from the innovative Avalanche Consensus protocol, first introduced in a 2018 whitepaper by the pseudonymous Team Rocket, which combined classical and Nakamoto-style consensus for high throughput and fast finality. Cornell University professor Emin Gün Sirer (an early researcher in Bitcoin and peer-to-peer systems) recognized its potential, collaborated with Team Rocket, and further developed it with his PhD students Kevin Sekniqi and Maofan "Ted" Yin. They founded Ava Labs in 2018 to build and commercialize the platform, launching the Avalanche mainnet in September 2020 after a $42 million token sale. The mainnet positions it as a scalable, multi-chain alternative that addresses blockchain scalability, security, and decentralization challenges through its unique three-chain architecture and support for custom L1s.

Avalanche L1s drive value to $AVAX through a continuous fee mechanism. The current L1 architecture requires validators to pay a fixed, recurring fee in $AVAX (1.33 $AVAX per Validator per L1 per Month) to the network, which is permanently removed from the supply. This increases accessibility for new chains while ensuring that each L1 contributes to $AVAX's scarcity. Additionally, growing activity on L1s amplifies network effects, as $AVAX is often used for cross-chain interoperability and liquidity.

$AVAX is the native token of the Avalanche network. It serves multiple purposes: paying transaction fees, staking for network security and rewards, voting in governance, and paying continuous fees for operating custom L1s. The total supply is capped at around 720 million, with about 431 million in circulation as of early 2026. $AVAX holders can stake to earn yields (typically 5-8% APY) while helping validate the network.

Yes, with over 750 validators and a decentralized consensus that resists 51% attacks, the core protocol has not seen any major exploits. Custom L1s leverage this same robust consensus technology while allowing tailored validators (e.g., for KYC). Audits and tools like Teleporter enhance cross-chain safety by enabling native, bridge-less communication.

Avalanche uses a family of consensus protocols (Avalanche and Snowman) that combine elements of classical and Nakamoto consensus to enable fast, energy-efficient validation. The network consists of three interoperable chains: X-Chain (eXchange) for creating and trading assets (like tokens and NFTs), C-Chain (Contract) which is EVM-compatible for smart contracts and dApps similar to Ethereum, and P-Chain (Platform) which manages validators, staking, and custom L1 coordination. This multi-chain structure avoids congestion, enabling horizontal scaling where apps run on dedicated chains without competing for resources.

Unlike single-chain networks, where all apps share resources (leading to high fees and slowdowns), Avalanche supports custom Layer-1 blockchains (L1s) that operate independently while remaining interconnected. It offers sub-second finality, EVM compatibility, low energy consumption, and customizable features, such as permissioned validators for compliance. This makes it ideal for enterprises and high-demand apps, scaling horizontally rather than vertically.

L1s are sovereign, customizable blockchains built on Avalanche's infrastructure. Each can have its own validators, rules, fees, governance, and even a gas token (not necessarily $AVAX). They enable dedicated environments for specific use cases, like gaming or regulated finance, without network-wide congestion. Examples include Beam (for gaming), FIFA Collect, and DeFi Kingdoms (over 1 billion transactions). Recent upgrades, such as Avalanche9000, have significantly reduced launch costs, making them more accessible.

Avalanche scales horizontally by allowing unlimited L1s to run in parallel, each with dedicated blockspace. This avoids bottlenecks - e.g., a viral game on one L1 won't slow DeFi on another. Combined with its consensus protocol, it achieves high TPS, low latency, and interoperability via tools like Interchain Messaging (ICM), which recently processed 16,617 messages in 24 hours.

Avalanche is eco-friendly, using proof-of-stake instead of energy-intensive proof-of-work. Its consensus requires minimal computation, consuming far less energy than Bitcoin or pre-merge Ethereum, equivalent to a few households' worth of electricity per year for the entire network.

Download a wallet like Core (Avalanche's native wallet) or add the Avalanche network to MetaMask. Buy $AVAX on exchanges like Binance or Coinbase, then send it to your wallet. Explore dApps via the Cascade Ecosystem Map page. For staking, delegate $AVAX via the P-Chain (minimum 25 $AVAX for delegation, 2,000 $AVAX for validators). If you have less than 25 $AVAX, you can use liquid staking platforms like Benqi or Hypha (prev. GoGoPool) which have no minimums.

To move assets internally (e.g., X-Chain to C-Chain), use the Core wallet's 'Cross-Chain' feature; it takes seconds and costs under $0.01. To move assets from external networks like Ethereum, use the official Avalanche Bridge. You can also use one of the Bridges listed on Cascade. Always confirm your destination chain (C-Chain is required for dApps) to avoid losing funds.

Staking secures the network and earns rewards. Use the Core wallet to move $AVAX to the P-Chain, go to staking, select a validator, delegate your $AVAX (minimum 25 $AVAX), and lock it for at least 14 days. Rewards are paid in $AVAX, with APY varying based on network participation (around 5-8%). Validators need at least 2,000 $AVAX and a hardware setup. Always check the validator's uptime, because they must maintain 80% uptime to receive rewards.

The Avalanche API uses JSON-RPC methods for interacting with the network, including querying balances, sending transactions, and deploying contracts. It's EVM-compatible on the C-Chain, so Ethereum Smart Contracts, such as Solidity, work seamlessly. Developers can access it via nodes from third-party providers like Alchemy or run their own. For custom L1s, use AvaCloud for no-code deployment.