Avalanche (AVAX) Subnets are Coming! But What Does That Mean for the Rest of the Avalanche Chains and Use Case?

By Michael @ CryptoEQ | CryptoEQ | 21 Mar 2022


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The Avalanche platform is an open-source, high-performance, scalable, and customizable blockchain platform. It’s one of the fastest smart contracts platforms in the current blockchain industry as measured by time-to-finality (1.5 seconds). The Avalanche bridge from Ethereum also has the second-highest activity as measured by TVL (Total Value Locked) with $6.9 billion being bridged as of Nov. 2021.

The Avalanche platform targets three use cases: 

  • Building application-specific blockchains for both private (permissioned) and public (permissionless) deployments
  • Launching highly scalable and decentralized applications (dApps)
  • Allowing the building of complex digital assets with custom rules, covenants, and riders (smart assets)

In this way, the platform seeks to solve the fragmentation in regulatory and geographical differences in financial markets by creating a fast, scalable platform for deploying, transferring, and trading digital assets in one ecosystem. 

Use Case

Avalanche (AVAX) is an advanced, multi-purpose blockchain platform launched in September 2020 by Ava Labs, led by Emin Gun Sirer. The platform has been designed to function as a secure, decentralized, and globally-distributed network. In addition, it was developed as a quick, cost-effective, and environmentally-friendly alternative to Ethereum (ETH). According to Ava Labs, Avalanche is the fastest smart contracts platform in the blockchain industry in terms of finality.

Avalanche is a "platform of platforms," consisting of thousands of subnets that form together to connect a single interoperable network. Ultimately, the network aims to solve the “blockchain trilemma” which identifies scalability, security, and decentralization as the three main problems facing blockchain technology. Using its own consensus mechanism, the Avalanche consensus Protocol, Avalanche employs three different blockchains to create a trustless, interoperable framework on which developers can build. Likewise, the Avalanche network also functions as a payment processor for peers to transact with its native cryptocurrency token AVAX. 




As mentioned previously, Avalanche consists of three chains, but also enables anyone to create application-specific blockchains called “subnets” beneath them. ​​They are Avalanche’s scaling solution similar to Layer-2 seen in Bitcoin and Ethereum. They’re highly customizable, can be permissioned or permissionless, and are interoperable with other subnets.

Primary Use Case

Avalanche was designed to solve several issues that often occur in blockchain networks. First, the platform eliminates centralization by offering a better alternative to networks like Ethereum and capitalizes on the disadvantages of these networks by offering more features, programmability, and functionality. Secondly, the system is designed to be scalable. The Avalanche network has constantly shown extremely fast transaction speeds, putting it in the ranks of leading payment processors such as PayPal and Stripe. Additionally, the Avalanche blockchain can process up to 6,500 transactions per second (TPS) with most achieving finality within milliseconds. Finally, when it comes to operating costs, Avalanche has significantly lower network fees (gas) than Ethereum. There are fees for transacting, launching subnets, creating assets, minting, and staking on the Avalanche blockchain network. But, unlike Ethereum, where gas fees are distributed to validators, AVAX fees are burned to ensure their value doesn’t decrease over time. 

While the most common use of the platform is the security and validation of AVAX transactions, the ability to build blockchains—known as subnets—within the Avalanche ecosystem is a major convenience. Anyone can create a subnet on the Avalanche blockchain by paying a subscription fee in AVAX. However, developers have full control over programmability, and networks can be set up with special tokens, fee structures, and rules. Nevertheless, Avalanche offers several use cases when it comes to adopting decentralized finance (DeFi), developing decentralized applications (DApps), creating and minting non-fungible tokens (NFTs), and more.


Important Avalanche Links


White papers

Protocol docs


Block explorer

Wallet - Ledger and TREZOR

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C-Chain metrics

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Michael @ CryptoEQ
Michael @ CryptoEQ

I am a Co-Founder and Lead Analyst at CryptoEQ. Gain the market insights you need to grow your cryptocurrency portfolio. Our team's supportive and interactive approach helps you refine your crypto investing and trading strategies.


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