Avalanche Subnets are customizable, configurable, application-specific blockchains within the Avalanche ecosystem that offer a unique set of advantages for applications. This article explores what Avalanche subnets are, their benefits, successful use cases, and how to create a local subnet. Avalanche subnets are critical to decentralized application (Dapp) success because they empower anyone to build custom blockchain networks tailored to the needs of users.
A Subnet is a dynamic subset of Avalanche validators that work together to achieve consensus on the state of one or more blockchains. It is a subnetwork within the greater Avalanche network that defines its own rules and can be tailored to specific user needs. Subnets are highly flexible and customizable, allowing developers to configure features such as choosing which token pays for fees, which validates network activity, and which virtual machine facilitates operations.
The benefits of Avalanche Subnets include improved user experience, reduced development costs, and time for builders, customized tokenomics and rules, the ability to establish private subnets, and scalability. Developers can create a subnet where only certain pre-defined validators may join, creating a private subnet with content accessible only to those validators. This is ideal for organizations interested in limiting their information to a specific audience or adhering to a set of compliance standards.
Several successful use cases demonstrate the value of Avalanche Subnets. For example, Defi Kingdoms’ Crystalvale Subnet alone averages more daily transactions than all of Polygon, while Dexalot is building its Avalanche Subnet to bring a better decentralized trading experience to its users, enabling users to safely and efficiently trade cryptocurrencies using a central limit order book exchange without slippage or custodial risk.
To create a local subnet, one must set up an Avalanche node, configure the node to connect to a subnet, and then create a subnet with its unique subnet ID, creating a customized blockchain network.
Institutions are building the future with Avalanche because Avalanche Consensus and Subnets have the speed, security, reliability, flexibility, and scaling to power institutional Web3 apps serving millions of users. Avalanche is now or will soon be the foundation for institutional Web3 projects in fields including finance, insurance, payments, vehicles, entertainment, culture, and many more.
In conclusion, Avalanche Subnets are critical to Dapp's success because they provide a pathway to a natural and seamless Web3 experience needed for widespread adoption. Subnets offer unique advantages for applications and developers, making it easy and affordable to tailor blockchain networks to the needs of users. The scalability and customization of subnets make them attractive to institutions looking to build their dream Web3 projects. Avalanche subnets are a promising solution for the growing demand for purpose-built services and features in the blockchain space.