What is the Avalanche Blockchain

Avalanche is a Layer 1 blockchain that provides high security, speed and low-cost transactions. Its mainnet is composed of three blockchains: the X-Chain, C-Chain, and P-Chain. Instead of having one overloaded chain, each blockchain has a specific purpose in the Avalanche ecosystem.

The X-Chain is used for managing assets through the Avalanche consensus protocol. Transactions on the X-Chain generate fees paid in $AVAX. That’s similar to how gas fees on Ethereum are paid in $ETH.

The P-Chain coordinates validators. But also, it allows anyone to create a new blockchain called subnets.

Aside from the main C-Chain, subnets are what most users will interact with. Subnets are sovereign chains with their own network of validators, but use the underlying Avalanche tech. Subnets allow the Avalanche ecosystem to scale horizontally, while providing teams with the option to quickly spin up a chain which fits their needs (public or private chain, app-specific requirements, independent token economics etc.). By definition, all Subnet validators must also validate the Avalanche Primary Network, adding security to the main Avalanche chains.

The C-Chain is related to smart contracts creation and execution, which is necessary for Decentralized Applications (dAPPS) and Non Fungible Tokens (NFT). The C-Chain is also EVM (Ethereum Virtual Machine) compatible, meaning anyone can deploy Ethereum smart contracts on Avalanche.