StaFi’s Attempt to Build a Subnet That can Fully Liquify Assets Staked in Each Blockchain Similar to Recent Work in Cosmos Eco

StaFi, short for Staking Finance, is one of the exciting projects in the crypto space that never stops improving its product.

Their roadmap for 2022 is filled with exciting updates, and they are working hard behind the clock to hit more milestones.

The launch of StaFiHub, a parallel chain to enable expansion of rTokens, was followed by plans to build a Subnet to enable cross-chain interoperability.

What is Subnet?

A subnet, sometimes known as a subnetwork, is a part of an extensive network. Subnets split an Internet Protocol (IP) network into many smaller parts. The IP enables data transmission across the internet from one computer to another. For unique identification, each computer on the internet has a minimum of one IP address.

Businesses use subnets to break up massive networks into manageable and more effective subnetworks. It reduces traffic on the main network through partitioning, thereby eliminating the need for users to pass through unnecessary routes and resulting in a faster network.

Assuming you intend to send a letter to someone who lives next town through a post office; rather than the delivery service taking that letter across thousands of miles before coming to the intended recipient who lives just a few miles away, a subnet enables sorting of these letters, so it reaches its destination faster.

How Does Subnetting Work?

IP addresses are used to identify the devices that connect to your network. To find a particular device, you’ll need to arrange the IP addresses logically.

A network could have hundreds of thousands of devices connected to it. As a result, these IP addresses can establish a complicated route for traffic to take. Subnetting restricts the use of IP addresses to a small number of devices. This enables an engineer to build sub-networks by subnetting data and organizing it such that it can transit without contacting every portion of the complicated routers. An engineer must match each IP address class to a subnet mask in order to accomplish this.

A subnet mask is similar to an IP address but only used within a network. Routers use subnet masks to direct data packets to the correct location. Data packets traveling over the Internet do not contain subnet masks; instead, they contain the destination’s IP address.

StaFi Subnet

A subnet in cryptocurrency is a set of validators that work together to achieve consensus on the state of the blockchain. StaFi is looking to expand its network, and building a Subnet with the help of the Avalanche blockchain is a step in the right direction that will usher the project into a new ecosystem of PoS chains.

StaFi Subnet is expected to liquify assets staked in each blockchain and expand the StaFi ecosystem. If hundreds of subnets formed in the Avalanche ecosystem use the StaFi solution to build a staking derivative, the StaFi ecosystem will experience immense growth.

Typically, building a new liquid staking mechanism consumes time and resources; a subnet will simplify building on an already established framework.

Why Avalanche?

As networks try to keep up with the multitudes of new users entering the space, scalability has become one of the most critical discussions.

Ethereum’s ridiculous gas fees and Solana’s reoccurring outages express the need for scaling solutions.

With subnets, Avalanche presents a unique approach to scalability issues by redirecting traffic that would clog its main chain.

The Avalanche network comprises three main blockchains, each serving a different purpose. On Avalanche, the C-Chain is where the majority of activities take place. The X-Chain is for digital asset creation and exchange (sending, swapping, and receiving funds).

Lastly, the P-Chain allows users to become validators by staking $AVAX, and it also enables the creation of subnets.

Avalanche Subnet Solution

Subnets enable projects to stake $AVAX in order to establish their L1 or L2 blockchains. The security of these blockchains is then ensured by a rotating group of validators who cooperate to reach a consensus.

Many projects have tried several scaling solutions but have met certain limitations in network congestion and expensive gas fees, while some sacrifice either decentralization or security.

Building a subnet enables interoperability, optimizes traffic, and ensures flexibility.

Conclusion

The idea of building a StaFi Subnet is exceptionally unique. The expansion of the StaFi solution to Avalanche is not only to be met by Avalanche users but by several other blockchains utilizing the unique Avalanche solution.

StaFi Subnet will enable StaFi to create liquid staking solutions for various blockchains at ease without worrying about time or cost.

It is currently undergoing testing, and the developers are taking their time to make sure they release a fully-working product.

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