What Is a Subnet Crypto? Explained

The Avalanche crypto ecosystem enables the creation of subnets, which are independent networks with distinct rules for membership and tokens.

Subnets consist of dynamic validators and function as autonomous networks within Avalanche.

Note that the examples provided are tailored for macOS, and developers on different platforms should adjust accordingly.

Subnet Crypto
Subnet Crypto: Photo source (Crypto.com)

About AVAX Validator Nodes

In Avalanche, nodes (AvalancheGo instances, servers, or hosts) maintain blockchain states and offer API endpoints for transactions and queries.

There are two types:

Validator nodes, which verify transactions through staking, and

Non-validator nodes, which serve as access points without transaction verification.

Validator nodes participate in transaction verification using the Snowman consensus model and staking, with a minimum stake requirement of 2,000 AVAX on the mainnet (no minimum on the Fuji testnet).

Creating your validator node is the tutorial’s initial step, for two reasons:

  1. Creating a subnet requires an essential Keystore user, and the node admin must access the username and password. It is advisable to carry out this task on your node, although having a validator node is not mandatory.
  2. To whitelist a subnet, set up and restart validator nodes engaged in subnet validation, utilizing the subnet ID.

What Are the Avalanche X-chain, P-chain, and C-chain?

Avalanche operates three main blockchains accessible to all nodes on the same network section. Validator nodes must be part of the main network; they can’t be exclusive to subnets. Different APIs allow chain access, each serving distinct functions:

  1. P-chain: Manages platform details, including validator, subnet, and blockchain information.
  2. C-chain: Handles contract management, resembling EVM, with similar APIs for smart contracts and supporting both RPC and WebSocket.
  3. X-chain: Facilitates asset exchanges, serving as the primary trading platform for AVAX and native Avalanche NFTs.

About the AVAX Currency and the Wallet

AVAX, Avalanche’s native token, functions differently across its chains.

On X-chain, it’s traded with a 0.001 AVAX fee.

P-chain uses it for validator node staking, while C-chain employs it for smart contracts and gas, with no fixed fees.

Subnets create unique tokens instead.

Wallets store AVAX, providing three addresses for each chain, managed conveniently through the official Avalanche wallet.

Are Subnets the Future?

Despite attempts by various blockchains to enhance scalability, no clear winner has emerged.

Polygon faced congestion due to a P2E game, Arbitrum experienced downtime, and Polkadot Parachains have limited slots.

Many scaling solutions compromise either scalability, security, or decentralization.

In contrast, subnets seamlessly integrate into the existing Avalanche Network, enabling diverse use cases through traffic optimization, native token gas payments, and custom networks.

Subnets are highly adaptable, allowing the creation of secure and compliant blockchains. Upcoming projects like Crabada and Camelot will launch their own subnets.


Avalanche Rush attracted billions, and Multiverse, with help from collaborators like Jump Crypto and Aave, offers more incentives.

The network’s impact could bring substantial capital, as AVAX gains value through staked tokens.

If subnets succeed, Avalanche might become Web3’s default platform for innovation and organic growth.

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