Avalanche: As a subnet for the RWA infrastructure

Written by GeekTop; Source: Web3 Insights

Subnets are located @avax refer to independent networks with their own specific rules and token economy. It consists of a subset of Avalanche validators that work together to reach consensus on the state of one or more blockchains.

Avalanche recently launched two programs: Avalanche Evergreen and Avalanche Vista. Avalanche has clearly taken proactive steps to prepare for potential regulatory compliance for crypto assets. They are also working on building the necessary infrastructure to facilitate the smooth tokenization of real-world assets (RWA).

Subnet infrastructure

→ Subnets in Avalanche are independent networks with their own rules and token economy. It consists of a group of validators who work together to agree on the state of one or more blockchains.

→ Avalanche main network is a set of three main blockchains running on subnets:

Contract Chain (C Chain)

Platform chain (P-chain)

Transaction chain (X-chain)

→ subnets redirect traffic from the primary network and provide customizable options that L2 solutions cannot. With subnets, Avalanche can support numerous secure, scalable, and decentralized blockchains.

• ️ Tokenization ️ of off-chain assets*

→ Off-chain asset tokenization, also known as Real World Assets (RWA) in cryptographic terms, refers to the use of blockchain and smart contracts to create digital tokens that represent ownership or rights to the underlying asset.

→ These tokens can be issued, traded, and managed on the blockchain.

→ However, off-chain tokenization faces several challenges:

Regulatory compliance

Liquidity issues

safe

Interoperability

Market adoption

Technical infrastructure

This is where @avax infrastructure comes into play to provide solutions to these challenges.

️Foundations of ️ RWA infrastructure

→ Avalanche’s robust subnet infrastructure will realize the true vision of tokenization. Several initiatives have recently been launched to support this, such as Evergreen and Vista.

→ Avalanche introduced Evergreen Subnets, with built-in capabilities to help organizations develop their own products:

Seamless EVM compatibility

Blockchain-level permissions (KYC, geofencing, etc.).

Custom gas tokens

→ Avalanche Foundation will invest $50 million in tokenized assets on the Avalanche blockchain through its program called Avalanche Vista.

→ They will explore various asset classes such as stocks, loans, real estate, and blockchain-based assets. The initiative aims to demonstrate the advantages and potential of tokenization on Avalanche.

️ Next Frontier ️

The discussion above explores only a small part of the many possibilities for leveraging blockchain technology to leverage off-chain assets.

The Avalanche subnet and its plans are ready and ready for major changes ahead, including the inclusion of the traditional financial sector in the cryptocurrency space and the corresponding regulations.

The tokenization of off-chain assets is an important milestone that has the potential to push the cryptocurrency market to unprecedented levels. However, progress is an ongoing journey, and there will always be new developments for those who dare to lead the way.