Created by Ava Labs, the open, programmable smart contracts Avalanche platform is geared towards decentralized applications and custom blockchain networks. All the nodes on the AVAX consensus mechanism process and validate transactions, which leads to transactions being processed simultaneously.
The AVAX network is made up of three separate blockchains (X-Chain, P-Chain, and C-Chain) which use varying consensus mechanisms. The X-Chain is used for fund transfers, P-Chain for staking and validating and C-Chain for smart contracts and DeFi applications. Together, the three chains aim to achieve decentralization at scale.
As measured by time-to-finality, AVAX is the fastest smart contracts platform in blockchains and compared to BTC’s 7 TPS, AVAX’s subnets can support infinite TPS. Total supply of AVAX coins is capped at 720 million.
Correlation shows how closely two variables move in relation to one another. In investing, this relationship is expressed numerically and ranges between -1.0 and 1.0.
A correlation of 1 is a perfect positive correlation. In this case, as one security moves, the other security moves in the same direction by the same percentage.
A correlation of -1 is a perfect negative correlation. As one security moves, the other moves in the opposite direction.
A zero correlation implies no relationship between the two securities.