“Subnets might be the next great breakthrough in blockchain tech,” says Emin Gün Sirer, leader of the Avalanche Foundation.
Avalanche, a blockchain platform, has announced the introduction of an incentive program called Avalanche Multiverse. The program will help drive the adoption of blockchain ecosystems designed for a particular app. These ecosystems are referred to as subnets. Avalanche is an open-source blockchain that supports smart contracts, and AVAX is the platform’s native coin.
The Creation Of Subnets
According to GünSirer, subnets provide for functionalities that are only conceivable using “network-level management and open testing.” He also stated that, although smart contracts have driven blockchain innovation in the previous five years, subnets seem to be the next big step.
The initiative will support decentralized finance (DeFi), blockchain gaming, institutional use cases, and non fungible tokens (NFTs) with about four million AVAX, which is about $290 million.
Many notable contributors have contributed to the Avalanche Multiverse, including Aave, DeFi Kingdoms, Jump crypto, Securitize, Golden Tree Asset Management, Wintermute, Valkyrie, and Wintermute.
With $15 million in incentives, the scheme will deliver a subnet particular to DeFi Kingdoms. As stated by an executive at DeFi Kingdoms, Frisky Fox, “the subset technology of Avalanche is a great fit for the platform’s project. “The whole DeFi Kingdoms world is encoded in smart contracts, pushing the boundaries of what blockchain technology is capable of,” Fox explains.
Ava Labs, Avalanche’s primary developer, will collaborate with other contributors to establish an interlinked blockchain featuring native KYC (Know Your Customer) functionalities designed exclusively for corporate DeFi.
The New Tech Will Have A KYC Feature
“The new subset with KYC technology will be a significant step for corporate adoption,” says Wes Cowan, executive director of Decentralized Finance at Valkyrie Ventures.
The subnet capability is an excellent addition to Avalanche’s network since it allows companies to tailor the blockchain to meet their own needs and still preserve Avalanche’s tools and capabilities. Also, subnets remove the need for projects to fight for resources because their speed and cost are independent of the events on Avalanche blockchain.
Meanwhile, FTX, a cryptocurrency trading platform, has established a fund to promote ” very scalable initiatives ” and give humankind long-term benefits. The Future Fund from FTX will invest about $2 billion in initiatives such as efficient altruism, bio-risk reduction, and artificial intelligence.
Although DeFi Kingdoms would be the first to get the Multiverse program incentives, other projects, like the game Shrapnel, have already begun to use the subnet feature. According to the Avalanche Foundations, the Multiverse initiative will be separated into six parts to fund different initiatives.