Avalanche is an open BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing. for smart contractsSmart contractA program that runs on a blockchain and automatically carries out what it was written to do once certain conditions are met. and custom chains. AVAX is the network's cryptocurrency: it pays for transactions, and it is staked to secure the network. The company Ava Labs, founded by Emin Gün Sirer with Kevin Sekniqi and Maofan Yin, developed the network, which went live on 21 September 2020.
How does Avalanche work?
Avalanche uses proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake. and an unusual consensus method. Each ValidatorValidatorA participant on a proof-of-stake network who locks up their own crypto as a stake to create and check blocks in return for rewards. asks a small, random group of others what they think is correct, again and again, until the same answer has come back enough times in a row. Transactions become final in about a second or less.
The main network is made up of three chains: the C-Chain runs smart contracts and is compatible with Ethereum, the X-Chain is used to send AVAX and other tokens, and the P-Chain keeps track of validators. On top of that, anyone can launch their own Avalanche L1, previously called a subnet.
AVAX
There will never be more than 720 million AVAX, and every network fee on the main network is burned. Running a validator takes a stake of at least 2,000 AVAX, but anyone can delegate 25 AVAX or more to a validator. Avalanche doesn't take part of the stake as a penalty, known as SlashingSlashingA penalty on proof-of-stake networks. A validator that breaks the rules loses part of its stake and is removed from the network..
What to keep in mind
AVAX can sit on any of the three chains, and the addresses look different. When AVAX is sent, it therefore matters to know which chain the recipient is using. Avalanche competes with Ethereum and other layer 1s, and the price of AVAX swings a lot.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.