Avalanche VS Ethereum | Explanation and Example of Defi Smart Contracts

2 min read

Different countries and locations have different financial markets and restrictions governed locally. So how can decentralized applications get around all this red tape and really evolve into the anticipated global norm? Well, this is something that Avalanche, an open-source smart contracts platform for decentralized applications has been working on and has led them to a whopping $18B in Total Value locked  (TVL) making the vision of a future unified ecosystem all the more plausible and exciting.

What is Avalanche?

Avalanche is an open, programmable smart contracts platform for decentralized applications or dapps, and subnets, or custom blockchains. They launched in 2020 

Validators verify transactions according to how many coins they hold with Avalanche, which operates on a proof of stake (PoS) model.

According to those who support PoS, it is significantly less energy-intensive than other models and more environmentally friendly.

How does Avalanche work?

Positioning themselves as, “blazingly fast, low cost, and eco-friendly,” Avalanche also has the claim to fame of being the fastest smart contracts platform in the blockchain industry, as measured by time to finality. This highlights a key difference between Avalanche and other decentralized networks as its consensus protocol enables Avalanche to permanently confirm transactions in under 1 second.

By employing a novel approach to a consensus to achieve its strong safety guarantees, quick finality, and high-throughput without compromising decentralization, Avalanche offers developers an interoperable and highly scalable ecosystem to build upon.

Not only that, it supports the entirety of the Ethereum development toolkit, enabling millions of independent validators to participate. There are currently over 1,100 full, block-producing nodes.

Subnets are another feature of Avalanche that is planned to launch in 2022 and will enable customizable blockchains to be deployed; enterprises and institutions will be able to create permissioned blockchains with on-chain KYC/AML capabilities. Additionally, blockchains, via virtual machines (VMs), can be scaled using subnets. For example, the Ethereum VM (EVM) on Avalanche is effectively an instance of Ethereum, powered by Avalanche consensus. With subnets, this can be replicated across any blockchain.

Complete Control for Users

Unlike other networks that force terms and conditions of network participation uniformly across the system, Avalanche empowers individuals and enterprises alike to develop applications and custom blockchain networks or build on existing networks.

For example, if a regulated financial institution wants to issue digital assets, it’s simply not possible for them to do so compliantly in a system where they cannot control which nodes validate their network activity. On Avalanche, the same institution can maintain complete control over the network. This is all possible via subnets.

Avalanche vs Etherium

One big difference between Avalanche and other decentralized networks like Etherium is the consensus protocol, or how the network validates transactions. Avalanche takes on the well-known blockchain “trilemma,” challenging the stale concept that networks can’t provide security and scalability without sacrificing decentralization. The network’s protocol uses a novel approach to consensus to achieve its strong safety guarantees with fast results and high throughput—all without compromising decentralization.

Avalanche combines both Classic consensus (speed, scale, quick finality, and energy efficiency) and Nakamoto consensus (robustness, decentralization) to create a new protocol that attacks scaling, security, and speed at the absolute foundation of decentralized networks. The trailblazing Avalanche consensus shows that you can have the best of both worlds without having to make sacrifices.

Avalanche also implements the Snowman Consensus Protocol, which is a chain-optimized consensus protocol—high-throughput, totally-ordered, and great for smart contracts. Snowman Consensus underpins Avalanche’s Contract Chain (C-Chain), which is a scalable, fast implementation of Ethereum’s smart contract engine (EVM).

Avalanche Benefits


Uses a novel consensus protocol, developed by a team of Cornell computer scientists, and can permanently confirm transactions in under 1 second.


Capable of 4,500 transactions per second–an order of magnitude greater than existing blockchains.


Ensures stronger security guarantees well above the 51% standard of other networks.


Uses energy-efficient proof-of-stake consensus algorithm rather than proof-of-work.

How to buy Avalanche (AVAX)

Avalanche can be purchased right now at Coinbase.com.

Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.

Via This Site