Summary:
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Covalent has partnered with Chainstack to enable developers to create and support Avalanche subnets, custom blockchain networks serving a variety of project use cases and needs.
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Covalent will provide a complete historical archive of subnet data and provide all functionality supported by Covalent’s unified API, while Chainstack will provide the complete infrastructure for any application wishing to launch a subnet.
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A subnet is like an on-demand blockchain where projects can set up and build their own custom blockchain with varying levels of permissions and functionality without investing valuable resources normally required to build infrastructure and consensus models.
Why are subnets important?
Covalent is partnering with Avalanche and Chainstack to allow users to deploy and run permissioned blockchains on Avalanche's subnets with the same ease and seamless experience that people get on public chains.
The challenge with many applications running on general-purpose layer-1 blockchains is that this leads to network congestion, leading to reduced performance, increased transaction fees, slower mass adoption, and scaling issues.
To address these challenges, Avalanche enables users to create a subnet, a custom blockchain network that supports a specific application and can handle millions of daily active users. Subnets are designed with the idea that different applications requiring different capabilities and rules can be powered exclusively by their own "servers" for their applications.
What are the benefits of subnets:
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Subnets can interoperate with other subnets and chains
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Easily set up a single-purpose blockchain