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Appchain Spotlight: Avalanche Subnets

By the Validation Cloud Team, featuring Avalanche and Avalanche Subnets: Balcony DAO, Dexalot, and DOS


Validation Cloud is a Web3 infrastructure company positioned at the intersection of commercial enterprises and public blockchains. Our team has extensive experience in identifying emerging industry trends and critical tools to enable Web3 adoption. Validation Cloud views appchains as a watershed event in Web3 adoption. Importantly, appchains seamlessly integrate a private chain’s security and access benefits with the superior technology and scalability of public blockchains. Validation Cloud’s Appchain Series establishes the foundation to understand appchains as a critical tool for Web3 adoption (Introduction to Appchains; Infrastructure Implications).

In our new Appchain Spotlight Series, we’ll highlight networks at the forefront of appchain development and showcase the appchains onboarding the next billion users of Web3.

To kick off the Appchain Spotlight Series, we’re highlighting Avalanche. In this post, we’ll introduce you to Avalanche Subnets, hear from current organizations building Avalanche Subnets, and share information on how to get started with your own Avalanche Subnet.

Introduction to Avalanche Subnets

“Subnets” are appchains within the Avalanche network. Subnets allow you to connect to Avalanche’s “blazingly fast, low cost, and eco-friendly” blockchain network at scale by launching your own customizable appchain that isolates application activity away from the main network, eliminating congestion from global traffic. Control over the user experience is put back into the hands of developers because they no longer have to compete for resources and can instead spend time customizing their Subnet’s tokens, validators, virtual machines, and more.

Congestion is eliminated by separating the Subnet’s activity from the main network. Subnets benefit from Avalanche’s security, speed, and community, but the separation allows for traffic to be isolated to specific applications rather than slowing down the broader network. This results in low transaction fees and faster access for users, while developers can scale applications in a matter of hours instead of months. Though separated, Subnets can seamlessly communicate with other Subnets and Avalanche’s Primary Network.

Subnets allow developers to scale their applications in hours rather than months (or years). More broadly, they allow the Avalanche network to scale infinitely. More and more Subnets launch each week, and dozens are currently in production.

One of the best use cases of a Subnet is DeFi Kingdoms, a Web3 gaming Subnet with 250k users that is responsible for the majority of Avalanche transactions, often more than 1 million per day. DeFi Kingdoms conducts about half as many transactions per second as Ethereum, but it has the potential to conduct even more. As a Subnet, DeFi Kingdoms can operate without congesting the mainchain and continue to grow its transactions and user base.

Avalanche continues to innovate Subnets, including the recent announcement of Avalanche Warp Messaging (AVM), which allows two Subnets to communicate with each other. Messages can be passed and verified across two blockchains without the need for a bridge. Learn more about AWM here and take a deeper dive into Avalanche Subnets here.

Why Avalanche Subnets? Hear from current organizations building Avalanche Subnets

With low-cost and on-demand scale, Avalanche Subnets are proliferating in a wide range of Web3 industries including DeFi, real estate, and gaming. Validation Cloud spoke to Avalanche Subnets, Balcony DAO, Dexalot, and DOS to hear why they chose Subnets to scale their application.

Balcony DAO — John Belitsky, Co-Founder

What is Balcony DAO?

“Balcony is the global standard for real estate tokenization. Emerging blockchain technology has provided Balcony with the tools to make transparency, fractionalization, automation, and liquidity possible. We’ve seized on this unprecedented moment to reimagine how global real estate is recorded, transacted, managed, and financed.”

Why did you choose Avalanche Subnets?

“We are drawn to Avalanche because their Subnet infrastructure allowed us to implement blockchain architecture that actually addresses our key concerns: extremely low gas costs, an extremely secure network, the ability to leverage a dual-chain design that allows for massive On-Chain metadata, built-in compliance tooling, and a network of builders with a mission to build technology that solves real-world problems.”

What has your experience been like building on Avalanche Subnets?

“We’ve been delighted with the process so far, in particular with the support and tools provided to us to customize our blockchain. Our vision is to make our Subnet the best in class infrastructure for all real estate dapps, projects, governments, and institutions.”

DOS — Quang Nguyen, CEO

What is DOS?

“DOS Subnet is the fastest, zero gas fee and three-steps onboarding blockchain network built in partnership with Avalanche using their Subnet technology.”

Why did you choose Avalanche Subnets?

“Blockbuster game players need low latency, efficient, glitch-free gaming at a standard. Avalanche is perfectly adapted to deliver the short loading times and fluid gameplay experience that MetaDOS gamers would anticipate because of its unmatched processing power. The ground-breaking consensus mechanism developed by Avalanche is effective, scalable, and capable of handling large traffic. It sets the stage for MetaDOS to grow its popularity and maintain its economy.”

“DOS Labs aims to support game devs and partnered gaming studios to bridge current games into DOS Subnet. With customized implementations that provide greater flexibility, Subnets allow game developers to quickly and efficiently develop robust, dependable, fast, affordable, and secure networks tailored specifically to the needs of players.”

What has your experience been like building on Avalanche Subnets?

“Building on an Avalanche Subnet helps us to match the user experience on our games or owner games on our ecosystem. Users don’t need to care about the wallet, the explorer, or blockchain. They just play the game, but they still own their asset. They can transfer, they can do whatever they want to.”

Dexalot — Jonathan Ackerman, CMO

What is Dexalot?

“Dexalot is a revolutionary decentralized exchange based on a central limit order book (CLOB). A CLOB is a type of order book a user would see on centralized exchanges like Binance. Dexalot brings the capital efficiency of this type of order book to the Avalanche blockchain via an on-chain implementation with the look and feel of centralized exchanges. Dexalot has released the first DeFi Subnet on Avalanche!”

Why did you choose Avalanche Subnets?

“Dexalot chose to build an Avalanche Subnet to increase transaction speed, decrease transaction fees to negligible levels, and improve the user experience. Avalanche Subnets’ fast finality and ability to issue chain-specific tokens for gas and validation made it possible to create a user-friendly DEX with the look and feel of central exchanges that market makers find attractive. The engineered ability to optimize and make Subnets permissionless were also reasons Dexalot chose to migrate from the C-chain to a Subnet.”

What has your experience been like building on an Avalanche Subnet?

“Ava Labs provided tremendous support on many levels. Dexalot is very grateful for the support and guidance provided. The tech and engineering support they offer really differentiates Avalanche from other chains. They provided the know-how needed for configuring the subnet, a means for integration with the Core wallet, a faucet for use on our testnetwork, and an amazing explorer!”

“The Avalanche ecosystem also has been like a family: welcoming, encouraging, participating, and growing with us. They helped by staking, testing, and participating in pre-subnet trading competitions and provided invaluable feedback. These activities all helped and continue to help shape the form and function of the Dexalot Subnet both now and into the future.”

Learn more about Dexalot: Website | Twitter | Telegram | Medium |Discord |LinkedIn

How to Get Started with Avalanche Subnets

Learn more about Avalanche Subnets including how to build your first Subnet here.

How Validation Cloud Supports Subnets

Validation Cloud is uniquely positioned to successfully deploy, manage, and scale Avalanche Subnets. We have architected our infrastructure to be highly elastic across our global regions of operation. As the load of the Subnet increases or new Subnets emerge, we can dynamically add validators to different regions of the world, and through Validation Cloud’s Node API, provide multi-region access to your Subnet. Contact to learn more and explore our platform here.

Validation Cloud Appchain Series
About Validation Cloud

Validation Cloud is a Web3 data streaming and infrastructure company that connects organizations into Web3 through a fast, scalable, and intelligent platform. Headquartered in Zug, Switzerland, Validation Cloud offers highly performant and customizable products in staking, node, and data-as-a-service. Learn more at | Platform | LinkedIn | X