AN AVALANCHE of SUBNETS
With the Avalanche public sale behind us and trading beginning to start its’ swing, it is time to start to speculate on what all that distributive action might bring the AVAX community. J-Stodd has introduced five different subnetwork ideas that could be implemented amongst a panoply of many others possibly provisioned by governments, corporations, shareholders and companies. His top four ideas squarely promise to help full-fill the mission of AVALabs to become the internet of Finance. Avalanche is optimal for scaling blockchain solutions. The number of subnetworks connected to Avalanche is going to sky rocket.
AVALabs is moving decidedly into the financial services and related space with a mission to support Avalanche becoming an internet of finance. This focus, recently reviewed at the Cornell Club of Mexico by AVALabs President John Wu is destined to result in a subnetwork architecture linking many financial projects in efficiently interoperable structures for a variety of verticals.
The avalanche community that is building on top of the default layer one Avalanche subnetwork comprised of the P, X, and C chains can make room additionally for other aspects of growth and development to appear. John recognized a variety of areas not necessarily and sufficiently within DeFi proper that may also find their way into many aspects of the platform.
Thus J-Stodd’s call to decentralize money with AVAX has already begun, Avalanche trading is taking shape, and the community is more active than ever.
From the base Avalanche subnetwork one can easily imagine two broadly different possibilities that articulated growth of the platform will format. One is a whole bunch of independent subchains ( subnetworks with virtual machine blockchain implementations) loosely connected to each other via the functionality sustained on the default Avalanche subnetwork. This possibility will result in a stand-of-trees-like structure once the connectivity and interactability reaches some equilibrium. At the other extreme is an intricately derived and interconnected system of subnetworks that share operations and functionalities of various sorts. An internet of finance will result in this kind of clustering of subnetwork interrelations around financial and related services. The fact that Avalanche supports atomic swaps between subnetworks leads to all kinds of architectural probabilities. A composite graph combining both perspectives looks a bit like this:
Business economics are influenced by many factors outside the business itself but blockchain offers interestingly new ways to create plans that model economically favorable scenarios that can be internalized and shared. J-Stodd’s top five subnetwork ideas represent functionally and specifically distinct ways that seemingly separate verticals can have plug and play tokenized interoperations in common via the default Avalanche subnet.
The “Free Resources” subnet may appear to present an ambivalent environment for overall success as many subnets may not need to have node resources partitioned differently for consensus and operational maintenance however this kind of subnet could be designed for avalanche fund management where fund managers need to connect to third parties with varying resources. The fund valuation entities, for instance, may not need to use the same computer resources on nodes as the government and compliance entities would as those may need access to critical software elements for security assurances.
The “Storage” and “Privacy” subnets could be used by quite a few of the kinds of projects that John outlined including many that may not be directly finance related.
The “Free Transactions” subnet could be payed for by a DeFi prediction market subnet that needs various computations computed on oracle data to make projections and these free transactions could be used to operate a social media ambassador program to enlist the average Joe into operating with AVAX crypto. John pointed out that in India for example there is currently a larger market for the use of crypto than the percentage of the population that is banked. Social media may be a way to reach threshold use by these indiviudals, especially in those regions that see high crypto adoption, for instance in LATAM.
All kinds of horizontal reticulations and interactions of avalanche subnets can be imagined by the implementation of JStodd’s top four subchain ideas. The ability to swap assets and tokens between subnetworks enables all kinds of advanced avalanche phylogenies as AVAX ontogenies mature — to draw a biological analogy.
There are optimizations in the works so that scaling the default subnet is not likely to become an issue anytime soon. I suspect that conceptual tradeoff manifestations, such as security vs decentralization are less likely to guide than compliance and geographic differentiators are as the big picture of an avalanche of subnets comes into a joined-up^ focus.
Either way, it will be interesting to see how the structure of the subnets grows and develops…may the avalanche building site sprint quickly and form from an independent blueprint to an internet of networking subnets.
For more information — start here: https://www.avalabs.org/ https://t.me/avalancheavax http://community.ava.network/ https://discord.com/invite/RwXY7P6
