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Avalanche ($AVAX)

Avalanche ($AVAX) is a blockchain platform known for its high throughput and low latency, making it an efficient choice for various decentralized applications. It’s designed to address some of the limitations of older blockchain systems like Bitcoin and Ethereum, particularly regarding scalability, transaction speed, and energy efficiency.

A key feature of Avalanche is its unique consensus mechanism, which allows for quick transaction finality while maintaining a high degree of decentralization. This mechanism differs from the traditional Proof of Work (used by Bitcoin) and Proof of Stake (used by many others) systems.

Avalanche supports custom blockchain networks that can be tailored for specific use cases. It also offers compatibility with Ethereum’s smart contracts, enabling developers to port their applications to the Avalanche network easily.

Regarding its classification, Avalanche is considered a Layer 1 blockchain. Layer 1 blockchains are foundational networks that provide the base layer for a blockchain’s infrastructure, unlike Layer 2 solutions built on top of these foundational layers to enhance scalability and efficiency. Avalanche’s architecture and operation are at this foundational level, making it a Layer 1 blockchain.