Avalanche Fundamentals — Subnet Architecture Explained!

Learning about the Avalanche Ecosystem — Part II

Multi-Chain Systems

• Defines the application-level logic
• They have multiple chains each optimized for specialized use cases

The early blockchain systems such as Bitcoin and Ethereum are all based on Single chain. The development of Multi-Chain Systems is a significant in blockchain systems such as Avalanche. They provide significant improvement in scalability, interoperability and flexibility. The core of this multi-chain system has the ability to run multiple blockchain systems simultaneously. Each chain is optimized for special use cases thereby boosting the performance of all networks.

Subnet Architecture of Avalanche Network

What is a Subnet?

• Network with own set of rules
• Subset of Avalanche Validators
• Can validate multiple Blockchains
• Each Blockchain can define their VM
• Subnets are independent
• Subnets can communicate

Each subnet can only validate one blockchain at a time, but a single subnet can validate multiple blockchains. This allows developers to create complex ecosystems of blockchains that are all interconnected.

For example, a developer could create a subnet for a decentralized exchange (DEX). This subnet would be optimized for high-frequency trading and low transaction fees. The developer could then create a second subnet for a non-fungible token (NFT) marketplace. This subnet would be optimized for security and storage. The two subnets would be interconnected, allowing users to easily move assets between the two.

Each blockchain can define their own Virtual Machine. For example, They can go with the EVM, or a modified version of the EVM, Or an entirely new VM. Each validator can be part of multiple subnets and all validators are the part of the primary network. The primary network includes P-Chain, X-Chain and C-Chain.

Benefits and Features

Scalability

Avalanche subnets can scale independently of the Avalanche primary network because each subnet has its own dedicated set of validators. This means that subnets do not have to compete with each other for resources. As a result, subnets can process transactions much faster than the primary network.

For example, if the Avalanche primary network is processing 1,000 transactions per second, a subnet could be processing 10,000 transactions per second, or even more. This makes Avalanche subnets ideal for developing highly scalable applications, such as decentralized exchanges, gaming platforms, and social networks.

More Subnets ∝ Subnet Performance

Independence

Independence is an important benefit of subnets on Avalanche. Subnets are independent of each other and of the Avalanche primary network, which means that they can operate without interference from others. This offers a number of advantages, including:

• Avoid Centralization: Subnets prevent centralization by preventing any single entity from controlling the network. Each subnet has its own set of validators, which means that no single entity can control the majority of the network’s stake.
• Modularity: Subnets allow developers to create modular applications. For example, a developer could create a subnet for a decentralized exchange (DEX) and another subnet for a non-fungible token (NFT) marketplace. The two subnets would be interconnected, but they would operate independently of each other.
• No competition for block space: Subnets do not have to compete with each other for block space. This means that subnets can process transactions much faster than the primary network.

Congestion In a Subnet doesn’t affect other Subnets

Customizability

Customizability is another important benefit of subnets on Avalanche. Subnets can be customized to meet the specific needs of different applications. This includes the ability to customize the following:

• Gas token: Subnets can use their own gas token, which is the token that is used to pay for transaction fees. This allows developers to create applications with their own fee structure.
• Virtual machine (VM): Subnets can use their own VM, which is the environment in which smart contracts are executed. This allows developers to create applications that use different programming languages and frameworks.
• Access restriction: Subnets can restrict access to certain users or applications. This can be useful for creating private or permissioned blockchains.

Here Subnet B is the customized Subnet having it’s own Architecture

Adoption

A number of other blockchains are adopting the subnet approach used by Avalanche. This is because subnets offer a number of advantages, including:

• Scalability: Subnets allow blockchains to scale horizontally, which means that they can process more transactions per second.
• Customization: Subnets can be customized to meet the specific needs of different applications.
• Security: Subnets can be isolated from each other, which improves the overall security of the blockchain.

Other blockchains that are already using subnets include:

• Cosmos
• Polkadot
• Polygon
• Oasis Network
• Ethereum 2.0

Reference: Avalanche Academy and Google