Avalanche unveils Evergreen subnets targeted at enterprise clients

Ava Labs released Avalanche Evergreen subnets, a new class of blockchain tool that aims to allow financial institutions to build permissioned blockchains within the Avalanche ecosystem.

The Avalanche network already supports many application-specific "subnet" blockchains on the mainnet across various niches, including decentralized finance (DeFi), gaming, and non-fungible tokens (NFTs). Evergreen subnets would be in addition to these subnets.

Evergreen subnets will compete with existing enterprise blockchain solutions that enable businesses to build permissioned networks. However, Ava Labs claims that such solutions often lack the ability to interact with public blockchains and may face difficulties in meeting clients' long-term needs.

Evergreen subnets address this challenge by enabling financial institutions to maintain control and customization while also communicating and interacting with other public subnets in the Avalanche ecosystem through Avalanche Warp Messaging (AWM). AWM functions as a messaging layer that simplifies on-chain asset and data transfers.

"I hear from financial institutions time and time again that wholly private blockchain solutions simply won't be able to scale to satisfy long-term client needs, but meanwhile, fully public solutions don't meet standards for control. Avalanche Evergreen subnets are the best of both worlds," said Morgan Krupetsky, director of business development for institutions and capital markets at Ava Labs.

Avalanche attempts to onboard enterprises  

According to Ava Labs, Evergreen subnets will offer customization and control options that financial businesses can leverage. These features include Know Your Customer (KYC) checks and the ability to establish whitelists that guarantee only verified and compliant wallets can access applications on specific subnets.

"Upon onboarding, institutions’ wallets can be issued non-transferable tokens (NTTs) indicating they’ve passed KYC checks; in addition, their wallet addresses can be embedded in an allow list, which monitors access at the chain level," a spokesperson for Avalanche Labs said.

When asked if there are any significant partnerships with client firms in the financial services industry, the Ava Labs spokesperson stated that they intend to release news on this front in the near future.