Ava Labs, the creator of the Avalanche layer-1 blockchain platform, is launching advanced institutional solutions to enhance the blockchain ecosystem.
On April 6th, Ava Labs unveiled Avalanche Evergreen Subnets, a collection of institutional blockchain tools and customizations tailored to meet the specific needs of financial services companies.
Morgan Krupetsky, Institutional DBD at Ava Labs, said that the new offering provides institutions control over their blockchain environment. It also facilitates inter-company communication.
According to Krupetsky, currently, institutions are adopting enterprise blockchains like Corda, Hyperledger, Quorum, or R3. These blockchains aren’t interoperable and require third-party bridges.
With Evergreen subnets, member institutions can communicate without relying on third-party bridges, allowing for seamless asset transfers, trade confirmations, and other messages.
Furthermore, Avalanche Warp Messaging (AWM), Avalanche’s native communication protocol, enables intercompany communication on Evergreen subnets. AWM allows for native communication between any two blockchains on different Avalanche subnets.
Evergreen Subnets: Combining Public & Private Blockchain
An Avalanche subnet, or subnetwork, consists of a dynamic group of validators working collaboratively to reach a consensus on the state of multiple blockchains. Subnets operate independently and do not share resources such as execution, storage, or networking with other subnets or the main network.
Krupetsky stated that subnets are part of Avalanche’s target state vision. The first subnet called DeFi Kingdoms was launched in April 2022. Additionally, these subnets can function as application-specific blockchains for various industries and use cases.
Krupetsky explained that Evergreen subnets have features for institutional blockchain use, like permissioning, geofencing, gas token selection, and EVM compatibility.
Furthermore, Evergreen subnets allow for a controlled environment while supporting public blockchain development.
In our work with institutional partners on both the buy and sell side, we discovered that institutions had common considerations and requirements when looking to deploy on public blockchain infrastructure, which led us to create Evergreen.
Krupetsky also emphasized that Evergreen subnets combine the “best of both worlds” from private and fully public blockchain solutions, as neither option alone meets long-term scaling requirements or security and control standards.
Ava Labs has recently announced that SK Planet, a South Korean technology firm, is developing an Avalanche subnet for its users. The newly created subnet, called UPTN, will be integrated into SK Planet’s consumer applications portfolio, which includes OK CashBag.
SK Planet, a leading data and technology company in South Korea, is building an Avalanche Subnet for their tens of millions of users.
Their subnet, UPTN, will be integrated with SK Planet’s portfolio of consumer applications, including OK CashBag. pic.twitter.com/hnbwapQBgM
— Avalanche 🔺 (@avalancheavax) April 5, 2023
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According to Emin Gün Sirer, subnets are the next big thing in blockchain after smart contracts. He argues that subnets offer unique capabilities that are only achievable through “network-level control and open experimentation.”