Avalanche subnets: X, C and P chains and the composability question
Quote587 words3 likes
Explains Avalanche's three core chains and application-specific subnets secured by validators staking AVAX on the P-Chain. Notes customization and private subnet potential but flags weaker inter-subnet composability than Ethereum.
Key claims
Avalanche splits into X-Chain, C-Chain (EVM) and P-Chain
Subnets have no shared security model like Polkadot but rely on AVAX staking
Atomic swaps may not deliver Ethereum-level composability
0/ Let's have a look at the #Avalanche network architecture & the #AVAX subnets. A powerful feature of @avalancheavax, that basically makes $AVAX a layer 0 rather than a layer 1 chain 馃敽鉂勶笍
My 馃У on $AVAX & its subnets (0/16) 馃憞
1/ Unlike $ETH, #Avalanche is not a single chain network. It features multiple chains with some performing core network functions while others are rather application-specific. The application-specific chains (subnets) can be compared to @cosmos zones or @Polkadot parachains
2/ More like $ATOM than $DOT, $AVAX does not have a shared security model though. Nevertheless, all non-core Avalanche chains (application-specific subnets), must rely on validators that stake $AVAX on one of @avalancheavax's core chains
3/ Avalanche鈥檚 core design features a total of three base platforms. Each of these blockchains plays a critical role within the overall #Avalanche system
4/ While most rivalling networks unite these capabilities in a single network, Avalanche separates these three core layers, thereby enabling Avalanche developers to upgrade each chain independently without adversely affecting the others
5/ The X-Chain: Handles the creation of new digital assets and the exchange of tokens between both the core blockchains and its various subnets
6/ The C-Chain: An implementation of EVM, which allows for the creation and execution of Solidity-based applications. Unlike $ETH's PoW model, this chain uses the more performant and instantly final Avalanche consensus mechanism to confirm transactions & state changes
7/ The P-Chain: The base staking platform that manages network validators and enables developers to create new subnets. Every subnet validator must also stake on the P-Chain and participate in securing Avalanche鈥檚 core blockchains.
8/ To spin up a network, a subnet needs to incentivize validators from the initial validator set (P-Chain) to join the subnet. These validators then basically break off into a smaller validator group that manages the subnet
9/ Hence, all subnets have loose ties to the core network through the overlapping validator set. What makes the feature so interesting though, is that the modular design allows teams to customize their chain to fit specific use cases
10/ This can for example mean using a different virtual machine than the EVM, designing a novel incentive model for validators or introducing novel forms of governance
11/ Through whitelisting of specific validators, its also possible to create private chains (or subnets), which could be very appealing to corporations from health care to the food industry & the world of finance
12/ Nevertheless, the modular design of these #Avalanche subnets & the independence that comes with it could also pose some challenges regarding inter-subnet composability. The composability of "DeFi money legos" is a core attribute that has enabled #DeFi on $ETH to flourish
13/ #Avalanche intends to address x-chain asset transfers through atomic swaps. But while atomic swaps may work well for asset exchanges between compatible networks (especially ones with overlapping validator sets), they won鈥檛 necessarily guarantee $ETH level composability
14/ Or put differently, inter-chain composability is hard and it might take more advanced solutions that I will not cover in this thread to enable a max level of inter-subnet composability (e.g. some standard format of cross-chain communication like $DOT's XCMP & $ATOM's IBC)
15/ In conclusion, subnets are a very cool feature & will definitely be a game-changer for #Avalanche. $AVAX is evolving into a scalable & interoperable network of application-specific blockchains that leverage @avalancheavax's ultra fast consensus & finality...
16/ ...and in which the #AVAX C-Chain is only one of many layer 1 platforms
But probably nothing 馃敽鉂勶笍
#Avalanche #FrogNation #subnets
QUOTING @tokenterminal
ELI5 on subnets? 鉂勶笍
ELI5 on subnets? 鉂勶笍