What Are Avalanche Subnets and Why Are They Critical to Dapp Success

Empowering anyone to build custom blockchain networks tailored to the needs of users

Avalanche Subnets are customizable, configurable, application-specific blockchains in the Avalanche ecosystem. Avalanche Subnets can reduce development costs and time for builders while providing a better user experience, giving developers more and better tools for making dapps. More importantly, these thoughtful designs can offer an easy pathway to a natural and seamless Web3 experience needed for widespread adoption. 

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With the explosive growth of DeFi and NFT applications, no single chain can possibly fulfill all Web3 user needs. As a result, more blockchain networks are entering the fray. More notably, these newer market players are beginning to focus on providing users with more purpose-built services and features.

Avalanche Subnets are the scaling solution that has shown the most promise. Numbers don’t lie. DeFi Kingdoms’ Crystalvale Subnet alone averages more daily transactions than all of Polygon. 

What are Avalanche Subnets?

A Subnet is a dynamic subset of Avalanche validators working together to achieve consensus on the state of one or more blockchains. To put it in layman’s terms, Subnets are subnetworks within the greater Avalanche network that define their own rules and can be tailored to specific user needs. 

Subnets are part of the overall Avalanche ecosystem and are connected to the core Avalanche Primary Network, which consists of three blockchains. However, with Subnets, dapps are running on their own network rather than on a shared L1 network, with hundreds of dapps all humming at the same time and competing for the same resources. 

What is the difference between these two approaches? If one dapp has a massive traffic spike (like we saw before Crabada launched its Subnet earlier this year), then it could slow everything down for all other dapps. Subnets eliminate this issue and fundamentally solve the network congestion problem of blockchains. 

At the same time, Subnets are highly flexible and customizable. They allow developers to configure features, such as choosing which token pays for fees, who validates network activity, and which virtual machine facilitates operations.

What are the benefits of Avalanche Subnets?

A Subnet manages its own membership and can establish its own tokenomics and rules. Moreover, it allows its validators to set certain custom properties. These features add up to a unique set of advantages for dapps.

Simply put, each Subnet is an independent and fully functional decentralized network. Projects can issue native tokens and design a business model that fits their needs. Such a design then enables the blockchain to be dedicated to specific purposes, whether optimized for traditional finance, a metaverse dapp, or a Web3 game.

In addition, developers can create a Subnet where only certain pre-defined validators may join. This way, a private Subnet is created with content accessible only to those validators. This is ideal for organizations interested in limiting their information to a certain audience or adhering to a set of compliance standards. 

Are there any successful use cases for Subnets?

Many dapps have already been leveraging Avalanche Subnets to optimize performance and enhance their user experience. More importantly, this all comes while inheriting Avalanche security and decentralization.

DeFi Kingdoms – the cross-chain, play-to-earn MMORPG – joined Avalanche as a Subnet in March 2022. Notably, the Subnet, dubbed Crystalvale, is currently executing more daily transactions than some Layer 1 blockchains, such as Polygon, Hedera, and EOS. For example, after the launch of the Crystalvale subnet, it took DeFi Kingdoms just six weeks to average approximately one million transactions per day.