What is a subnet and why are they so revolutionary?
AVA can be split into many subnets all with unique features and widely different characteristics. This not only helps with scalability by distributing the workload of AVA to multiple chains - it allows AVA to adapt to changing market conditions much faster than other projects. AVA isn't limited to a single VM, it isn't limited to a single way to implement tokens, anyone who wants to can easily create their own subnet ontop of AVA and implement the features they want to in order to create their specific ecosystem.
What is a chain?
Chains are a generic term for VM instances. Each chain is assigned a ChainID and can be part of one and only one subnet. However, the same VM instance can be used to deploy the same type of chain multiple times within a subnet.
Every chain is part of a subnet. All but one subnet is optional for validators. The main non-optional subnet contains three chains:
P-Chain (Platform Chain) - coordinates validators, keeps track of subnets and also allows people to create new subnets.
C-Chain (Contract Chain) - a smart contract chain allowing for the creation of ethereum compatible smart contracts that require total ordering. It uses the Snowman engine - an optimized consensus algorithm created by the AVA labs team to allow for high throughput smart contracts.
X-Chain (Exchange Chain) - a super fast chain using Avalanche DAG allowing for the creation and exchange of assets between different addresses and subnets and also for decentralized applications that do not require total ordering.
All three of these chains make up the main, default AVA network and provide near endless possibilities. People can create DAOs on the C-Chain and simultaneously utilise the X-Chain to transfer assets at blazing fast speeds. This is an extremely clever and unique way to structure a ledger to allow for as much scalability and speed possible.
Avalanche is truly the platform of platforms. Avalabs will continue improving AVA and plan on releasing the mainnet in july. Stay tuned for more updates on Avalabs.org