The Scaling problem is one of the most significant barriers in Web3 mass adoption, which Avalanche’s Subnets can solve.
With the help of Avalanche Subnets, Web3 can become mainstream adoption as it provides security, speed, and scaling of the blockchain network.
In this article, we will explain the areas that Avalanche Subnets have impacted and how Avalanche Subnets solve scaling problems –
What are Avalanche Subnets?
The Avalanche Subnets are application-specific customized blockchains and are connected to the core of the Avalanche ecosystem. The Subnets provide the power in the hands of developers to customize and control the user experince.
Moreover, the developers can select token fees, which will validate the network and the activities facilitated by the virtual machines.
The additional power of Subnets, speed, security, and scaling, ensures that the application supported by Subnets does not cause any congestion in the entire network.
For Subnets, there has been rapid adoption in different domains like gaming areas and Decentralized Finance (DeFi), which will be required to scale the applications and support their infrastructure.
Having Subnets on the network helps the users with low-fee and fast transactions and allows developers to scale their applications in hours rather than months.
How do Avalanche Subnets solve Scaling Problems?
The Avalanche Subnets are similar to sharding because they create new subnets but are separate and connected with the blockchain. The only difference between sharding and Avalanche’s Subnets is that it is algorithmically generated and can be utilized by the user as wanted.
The Subnets work similarly to Layer 2 but are more feature-rich, robust, and decentralized.
The two unique things about the Subnets are providing multiple subnets for a single cryptocurrency and unlimited chain-creation for numerous use cases. The security of the subnets is maintained by staking the native tokens, $AVAX.
Usage of Avalanche Subnets in Gaming Applications –
1. DeFi Kingdoms –
DeFi Kingdoms is a play-to-earn MMORPG based on the DeFi protocol. For the expansion of the DeFi Kingdoms, the Crystalvale Subnets were launched on 30th March 2022. The Crystalvale Subnets started handling an average of 250,000 transactions per day within six weeks after the launch of the DeFi Kingdoms.
2. Crabada –
The Crabada is a native play-to-earn game in the Avalanche ecosystem. With the launch of Crabada’s Swimmer Subnets on 9th May 2022, it started handling 4,00,000 transactions per day.
Usage of Avalanche Subnets in DeFi Applications –
1. Institutional DeFi Applications –
Building of the KYC (Know your Customer) functionality on the Institutional DeFi Applications by Ava Labs in collaboration with Aave companies, Valkyrie, a crypto asset management firm, Wintermute, Securitize, and others.
Upon launch of the Subnets, Institutional DeFi Applications will be able to leverage it by scaling and accelerating the adoption of subnets on the institutional adoption of DeFi.
2. Dexalot Subnets –
The Dexalot Subnets run on the Dexalot platform, a Decentralized Exchange (DEX). It is an on-chain application that helps users to trade cryptocurrency securely and efficiently. The Dexalot Subnets testing is going on the Avalanche’s Fuji Testnet before launching on the Avalanche’s Mainnet.
Are Avalanche Subnets the future?
Many blockchains have come up with their own solution to solve the scalability problem, but no one can solve it.
While solving the scaling problem, many blockchains have to sacrifice one aspect of the blockchain trilemma from Security, Scalability, and Decentralization.
Blockchain infrastructure company like Zeeve provide secure Avalanche Subnets to solve scaling problems.
On the other hand, Subnets are built on top of the Avalanche blockchain. The Subnets optimize traffic with the help of native tokens for a gas fee and using custom networks; it helps with many use cases.
Closing Thoughts –
The Avalanche Subnets are the most elegant scaling solution for Gaming, DeFi, and Institutional Applications. The Subnets provide unlimited scaling abilities, which are also future-proof. With the help of Subnets, there is no need to switch to another solution because one can utilize the exact native crypto asset and network.