How are assets and gas denominated in the C-Chain?

• A. Gas is paid in USD; assets issued on C-Chain cannot be used in transactions.
• B. Gas is paid in AVAX on the C-Chain; assets issued on the C-Chain can be used as part of transactions and contract calls.
• C. Gas is paid in BTC; assets are not transferable.
• D. Gas and assets are both denominated in a separate token; assets cannot be used in contracts.

Answer: (B)

On the C-Chain, gas is paid with AVAX, the native token of Avalanche. This means every transaction or contract call requires paying in AVAX for the computational work needed to process it. Assets issued on the C-Chain are ERC-20–like tokens (ARC-20) that live on the same chain, and they can be used as inputs or payments within transactions and contract calls. In other words, you pay gas in AVAX, and the assets you’ve issued on the C-Chain can participate directly in transactions and be referenced by smart contracts.