Layer 1 protocol Avalanche (AVAX) is releasing “Evergreen Subnets” – a suite of blockchain deployments, tooling and customization services – for financial institutions.
The firms will be able to launch their own Evergreen subnets for research and development, and for “production-ready use cases,” said Ava Labs, the builders behind the Avalanche blockchain, in a press release.
A subnet is a sovereign network that defines its own rules for membership and tokenomics. They are composed of a group of validators – in this case, Avalanche validators – that work together to reach consensus on the state of one or more blockchains.
“Institutions can pursue their blockchain strategies in private, permissioned chains with known and approved counterparties, while retaining the ability to communicate with other subnets through Avalanche’s native communication protocol Avalanche Warp Messaging (AWM),” according to the statement. The AWM allows users to data transfer, communicate and asset swap without relying on a third party intermediary, the statement added.
Avalanche currently has several Ethereum Virtual Machine (EVM)-based subnets, including the Intain Subnet, which is a tokenized asset-backed security (ABS) application and the Deloitte Subnet, which is a platform for efficient Foreign Exchange Management Act (FEMA) fund disbursements.
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