Figure 8.1: Avalanche Platform overview (Source:

https://docs.avax.network/learn/platform-overview)

The X-Chain creates and manages assets, P-Chain handles the

validators as well as creation of custom blockchains, and C-Chain

gets the smart contracts executed. Also, please note that while X-

Chain, also called as “Avalanche Virtual Machine” or AVM, works on

Avalanche consensus, P-Chain and C-Chain adhere to another type

of consensus known as the Snowman consensus protocol.

The validation of the transactions in Avalanche happens through

repeated voting. A validator node doesn’t finalize any transaction just

by self-analysis but selects a subset of other validators every time

and collects their confidences on the validity of the transaction until a

threshold is reached, as shown in Figure 8.2 as follows: