A few months ago, Avalanche hinted that it would begin to focus on subnets. As a result, the platform announced the $290 million Avalanche Multiverse, which it plans to use to incentivize projects that sign up for the initiative. It’s been weeks since the announcement, and so far, subnets have become a growing trend within the crypto space.
Web3 to the outside world has endless possibilities. Like Web2 before it, many believe Web3 will usher in change across several industries. This would include sports, entertainment, finance, etc. However, those on the inside know that there is more to Web3 than this. There are some constraints and limitations. For example, the capacity of a single blockchain to onboard billions of people could be overwhelming. Although platforms like Avalanche are giving things a shot, the task is too much for a single chain.
Avalanche launched the Avalanche subnets to realize this dream of a fully-adopted Web3. So far, several projects have signed up and are enjoying benefits.
What are Avalanche subnets?
Subnets play a huge role in Avalanche’s ecosystem. They are custom, application-specific blockchains. Subnets share a strong link to the Avalanche blockchain, but they don’t compete for a single pool of resources. This allows developers to have complete control of their experience. Furthermore, Subnet developers can customize everything, including payment and validation.
You may have heard that Subnets are how #Avalanche scales infinitely, and Subnets are the future of Web3 infrastructure. But how? Why? What’s next?
Let’s dive deeper into how they work, and how they solve some of Web3’s biggest challenges: 🧵⬇️https://t.co/awBnK70Lti
— Avalanche 🔺 (@avalancheavax) May 19, 2022
Subnets also isolate application operations from the larger group. This ensures that there is no congestion caused by traffic on a single application. Subnets on Avalanche would inherit Avalanche’s security, community, and speed. This helps reduce both fees and congestion.
Avalanche Subnets are quickly gaining traction in gaming applications and the general DeFi space. For many, they provide a clear path for developers to scale their applications to meet current user demand while also ensuring a strong future for their infrastructure.
Furthermore, organizations and businesses are getting on board. They recognize that having complete customization allows for the development of complex and regulated use cases in a dependable and contained setting. They also decide the structure of control for subnet activity.
Avalanche Subnets for Users and Developers
Subnets benefit users in several ways. For example, it aids consistent, fast, and low-cost transactions for the applications they use. This helps them maintain focus on their intended task rather than cost and the time frame of a transaction.
Developers benefit from subnets as it helps them scale faster than what it would have taken. This speed helps improve a user’s experience. It also expands the utility of their governance token. As a result, projects can use these tokens as transaction fees.
Now, let’s dive into the key factors that make Subnets the premier scaling solution to experience Web3 like never before 🔺
💎 Customizable user experiences
📍 Dedicated blockspace for faster, cheaper transactions
🤝 On-demand scaling for any project— Avalanche 🔺 (@avalancheavax) May 19, 2022
Projects Using the Avalanche Subnet
Several projects have signed up for the Avalanche subnets. These projects span across DeFi and the gaming industry. DeFi Kingdoms, a cross-chain, play-to-earn MMORPG, launched its subnet on March 30, 2022. The Crystalvale Subnet is the project’s first development. It has already completed more daily transactions than some Layer 1 blockchains. It averaged around 250,000 per day six weeks after its debut.
The Crabada Swimmer Subnet is another game-based Avalanche subnet. Launched on May 9, 2022, Crabada’s Swimmer Subnet already boasts 400,000+ transactions per day. More DeFi and gaming projects are set to launch as Avalanche Subnets in the coming months. Also, Avalanche is in talks with other platforms to launch the first horizontally-integrated blockchain mainly for institutional DeFi projects with native KYC functionality.
The companies on this list include Jump Crypto, Securitize, Golden Tree Asset Management, Valkyrie, and Wintermute. In conclusion, Avalanche Subnets would undoubtedly trigger the next wave of growth for the Layer 1 protocol.
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