What is Avalanche?
Avalanche is a Blockchain platform that competes with Ethereum in creating a network that allows for the execution of smart contracts and the creation of tokens. Avalanche supports, like Ethereum, the use of smart contracts to run decentralized applications on its network. Avalanche's smart contracts are written in the same language used by Ethereum, named Solidity.
AVAX, the Avalanche platform's native token, is used to secure the system and verify transactions. New AVAX are given as an incentive in protecting the network and can be used to participate in project governance and pay transaction fees.
Avalanche is an open source project, which means that anyone can view and contribute to the platform code. Transactions on the Avalanche blockchain are confirmed using a unique method that requires many small random subsets of network participants to confirm transactions before they are considered finalized.
AVAX holders with the most coins in stakes, and who actively participate as validators, are more likely to be chosen as validators for new Blockchain blocks. The coin is also required to vote in Avalanche network governance proposals.
The maximum supply of AVAX is limited to 720 million tokens, but AVAX users determine how quickly new coins are minted. AVAX holders can control the rate at which new coins are created by voting to adjust the amount of AVAX that is paid as a reward for adding a new block to the Avalanche Blockchain. All fees are burned, that is, removed from circulation, to allow AVAX to become scarcer over time. Avalanche users vote to decide the transaction fee, making AVAX fees subject to change and making users active participants in the choices to change the protocol.
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