Avalanche introduces “Evergreen” subnet to connect institutions on blockchain

Ava Labs, the developer of the Avalanche layer-1 blockchain platform, is introducing new institutional deployments to improve the blockchain environment.

On April 6, Ava Labs introduced Avalanche Evergreen Subnets, a suite of institutional blockchain tools and customizations designed to meet enterprise-specific financial services requirements.

The new product aims to allow institutions to maintain control over their blockchain environment while enabling intercompany communication, Ava Labs’ director of institutional business development, Morgan Krupetsky, told Cointelegraph.

“Currently, many institutions build use cases on enterprise blockchains such as Corda, Hyperledger, Quorum or R3, which are inherently not interoperable and rely on third-party bridges,” Krupetsky said. With the Evergreen subnet, member institutions will be able to communicate with each other without relying on third-party bridges, seamlessly transfer assets, proceed with trade confirmations and other messages, the director noted.

Group communication on the Evergreen subnet is enabled using Avalanche’s original communication protocol, Avalanche Warp Messaging. The AWM feature provides native communication between two blockchains on different Avalanche subnets.

An Avalanche subnet, or subnet, is a dynamic set of validators that work together to reach consensus on the state of a set of blockchains. Subnets are independent and do not share runtime, storage, or networking with other subnets or the primary network, allowing the network to scale.

“Subnets were always part of the target state vision for the Avalanche network,” Krupetsky said, adding that the first subnet — DeFi Kingdoms — was launched in April 2022. “Subnets can be thought of as application-specific blockchains that can be customized for a whole range of industries and use cases , he added.

Unlike standard subnets, Evergreen subnets have certain built-in features aimed at providing a finished product for institutional blockchain implementations, such as user and validator permissions, jurisdiction-based geofencing, custom gas token selection, and Ethereum Virtual Machine compatibility, Krupetsky noted .

Related: Enterprise blockchain transforms business operations and reduces costs — Web3 exec

The Evergreen subnet also enables a controlled environment while providing public blockchain development, the executive added, stating:

“In our work with institutional partners on both the buy and sell side, we found that institutions had common considerations and requirements when seeking to deploy on public blockchain infrastructure, so we created Evergreen.”

Krupetsky also said that the Evergreen subnet brings “the best of both worlds” from private blockchain solutions and fully public solutions because, individually, such options do not meet long-term scaling needs or standards for security and control.

The news comes amid Ava Labs announcing that South Korean tech company SK Planet is building an Avalanche subnet for its users. The new subnet, UPTN, will be integrated with SK Planet’s portfolio of consumer applications, including OK CashBag.

As previously reported, Avalanche Foundation Director Emin Gün Sirer believes that subnets are the next big thing for blockchain after smart contracts. According to the executive, they enable features that are only possible with “network-level control and open experimentation.”

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