Programming

AVALANCE SUBNETS: A NEWBIE’S GUIDE

Avalanche is one of the successful cryptocurrencies in the market and is constantly growing. It is an impressive L1 in the web3 world, and as networks work toward satisfying the millions of users entering the space daily, Avalanche is making big strides. Avalanche takes a distinctive approach with subnets which helps it divert traffic that would otherwise congest its main chain.

For starters, Avalanche has three primary blockchains with different functions. They include the C-chain, X-chain, and P-chain. The C-chain facilitates most of the action, including decentralized finance and nonfungible tokens, while the X-chain facilitates sending, receiving, and generally swapping funds. The P-chain allows users to stake $AVAX and create subnets.

What are avalanche subnets?

Avalanche subnets are the scaling solution for Avalanche. These are dynamic groups of validators working together to achieve consensus on a system of blockchain networks. One of the subnet’s members validates each block, and a node can participate in many subnets. A subnet also stipulates the features of its members, which is vital in managing their membership. A subnet’s validators work together to achieve a consensus.

Subnets are similar to sharding, except that they do not create new instances of the identical blockchain. Rather than being algorithmically generated, the users themselves launch subnets and create separate instances of the blockchain.

Avalanche subnets facilitate scaling tasks. Firstly, they allow competing ideas to exist with the same crypto. For instance, a user can create separate subnets with different schemes. One can also launch a subnetwork for raw on-chain scaling or larger nodes.

Additionally, the subnets make it possible to develop unlimited chains for various niche use cases; for example, one can create a second chain after utilizing the initial one. Several validators can validate multiple subnets, but the only concern is that they cannot facilitate cross-chain transfers on the P-chain.

The best thing about avalanche subnets is that they are limitless. You can continually develop a new one whenever you reach a scaling limit, and there are no disadvantages to doing it. Although they are slightly less secure than the default network, the token facilitates the security of the networks connected with the subnet. Every subnet has the potential to yield farming for the validator as long as they have a unique token giving them extra interest from the fees.

The perks of deploying a subnet

Customizability

Avalanche subnets make it possible to customize the underlying blockchain to your application needs. That includes economic primitives, virtual machines, free structures, etc.

Compliance

Some regulations of avalanche subnets are that validators should be located in a particular country and pass some checks, making compliance more manageable.

Easing congestion

The application eliminates network congestion caused by incoming applications, so it remains cost-effective.

Support for private blockchains

One can develop a private subnet that allows only predefined validators to participate. It is a suitable solution for institutions that want to keep their data confidential.

Closing remarks

Although we have no clear winner in blockchain’s efforts to achieve scalability, avalanche subnets are flexible, resulting in regulatory compliant and secure blockchains. Users have access to different subnets they can use for private and public transactions.