# What is AVAX?
AVAX (Avalanche) is a decentralized platform for launching, managing and governing digital asset ecosystems. It was created by Ava Labs Inc., founded by Cornell professor Emin Gün Sirer in 2018. The platform utilizes consensus algorithms based on the Avalanche protocol to enable users to create their own secure networks with no central control or point of failure.
The main feature of the Avalanche protocol is its ability to rapidly confirm transactions, allowing it to process thousands of transactions per second while still maintaining security and scalability. This makes it an attractive option for financial applications such as payments, banking services and trading platforms that require low latency transaction processing times but don’t want to sacrifice decentralization or data integrity.
AVAX also provides developers with access to various tools such as APIs, SDKs and wallets which can be used when building dApps on the network.
# How Does AVAX Work?
At its core, AVAX works similarly many other distributed ledger technologies like Ethereum or Hyperledger Fabric; all nodes have equal authority over changes made within the blockchain’s database (such as adding new blocks). However what sets it apart from these systems are two key features: finality-of-state protocols & virtual voting mechanisms built into every node in order for them achieve reliable consensus without requiring a centralized authority figure overseeing decisions being made about how data should be updated within the system at any given time.
In practice this means that each node running on top of an Avalanche network will independently agree upon state transitions taking place before they become permanent – meaning if one node disagrees then nothing happens until majority agreement has been reached across multiple other nodes operating simultaneously throughout entire global infrastructure powering said application/network instance itself! Additionally due to way which votes are cast virtually through use cryptographic proofs instead physical ones like PoW solutions do there’s less energy consumption overall leading cheaper costs associated running apps powered by chains leveraging tech behind Avalanches architecture compared others out there right now too making them much more practical choice businesses who need efficient yet secure methods keeping track their transactional activity online securely regardless size operation being performed too large scale enterprise level operations down small personal purchases etc…
