3.1 Conceptual Overview of Blockchain

At its core, a blockchain is a distributed ledger — a tamper-resistant record of transactions maintained by a network of independent participants. Rather than relying on a single centralized database, the ledger is replicated across multiple nodes, and updates are accepted only when network consensus is reached. Once a transaction is confirmed, it becomes part of an append-only chain of blocks, each cryptographically linked to the one before it.

Avao Chain operates using a QBFT consensus mechanism, enabling deterministic finality and high performance while maintaining strong fault tolerance. Validator nodes are known, permissioned entities, and consensus is achieved even in the presence of faulty or malicious actors, up to the limits defined by Byzantine fault tolerance.

This architecture provides several key benefits:

● Transparency: All transactions and state changes are verifiable on-chain, with full auditability of system activity.

● Security: Cryptographic signatures, validator accountability, and Byzantine fault tolerance protect the network from unauthorized state changes.

● Decentralized Trust: Control is distributed across multiple independent validators rather than a single operator, reducing the risk of unilateral censorship or manipulation.

● Deterministic Finality: Once a block is confirmed, transactions are final and cannot be reversed, providing strong guarantees for applications and settlement.

While these principles are foundational to blockchain systems, many networks struggle to balance decentralization, performance, and usability. Avao Chain is designed to address these challenges by combining a permissioned validator set with a robust consensus engine, enabling fast finality, predictable execution, and infrastructure suitable for real-world applications.