The “You Ask We Answer” Vol.11 carried out by ViaWallet on Twitter on September 23th was a great success. Users actively participated in the event by raising their questions to ViaWallet. Hundreds of comments were received, and here we’ve selected some of them to answer. All selected askers share a $500 prize pool. Congrats!



1. Does ViaWallet hope to create its own token in the near future?
ViaWallet has no plan to issue tokens for the time being.

2. Security is always a key factor. What does ViaWallet have to offer in terms of security measurements?
ViaWallet attaches great importance to security, as security is critical to the asset safety of every crypto user after all. To this end, ViaWallet has strengthened security with improved coding and product design. First of all, ViaWallet insists on decentralization. It allows users to hold their own private keys and have 100% control over their own assets. In terms of product design, we have introduced a variety of ensuring measures, such as the app lock, security password, mnemonics, and ciphertext QR code, to effectively secure the use of the App in various scenarios. In addition, with profound R&D experience and insights into blockchain security, our developers are also constantly optimizing the code to avoid bugs for the high performance and security of ViaWallet.

3. Web3 wallet has so many choices. What makes ViaWallet unique and different from other wallets?
There are many crypto wallets out there, and ViaWallet aims to be the safest, most user-friendly multi-chain wallet. To this end, ViaWallet has been constantly optimized in terms of security, user experience, and multi-crypto management.

To begin with, security is the top priority and the lifeline for a crypto wallet. An unsecured wallet will never win the trust of users no matter how well it performs in other aspects. In recent years, we have seen many accidents, which constantly remind us of the importance of security. Therefore, we try our best to ensure the security of users’ assets with measures introduced to the product design, as stated above, including the full self-control of private keys by users, app lock, security password, mnemonics, ciphertext QR codes, etc. In addition, we provide a great amount of security knowledge for users on our official blog to remind them of risk prevention when they use a dApp. We also hope that all users can feel comfortable and safe in the world of Web 3.

Novice users may find it difficult to use a wallet. For this reason, we have constantly optimized the interface of ViaWallet this year, making the interactive design of crypto management, wallet creation/import, and account switching as clear and easy to use as possible. Ultimately, we want to make ViaWallet a very novice-friendly Web 3 wallet.

By the way, we have been continuously strengthening multi-crypto management. As we all know, there are many asset categories in the crypto industry, and some users even need to use more than one wallet to manage their crypto assets. ViaWallet is committed to being a wallet with which users can manage all their cryptos. It supports 48 kinds of coins, 1 million+ tokens, and NFT management on Ethereum, CSC, and BSC, covering most of the current mainstream cryptocurrencies and NFTs. ViaWallet has become one of the wallets with the widest range of cryptos available in the market, and it is going to support more in the near future.

4. Adoption is very important. How do you plan on getting ViaWallet adopted by the outside world (people with little blockchain knowledge)?
As we mentioned in the previous question, we want to make ViaWallet a novice-friendly wallet. So we have already made several optimizations to improve user experience. We pay close attention to the experience of the user groups without blockchain knowledge. Therefore, we have added a guide page in V3.2.1 as well as the future versions to help users quickly get started with ViaWallet. At the same time, we have provided instructions and user guides for novices, helping them understand and use the wallet more easily.

5. A project needs to deal with solving a real-world issue or problem. With that said, what are the problems that ViaWallet primarily focuses on? What market are you targeting? And what are your plans to convince and onboard new non-crypto clients?
ViaWallet has been committed to offering users a wallet that manages all crypto assets. As far as we’re concerned, with the development of the crypto industry, crypto assets have been increasingly utilized worldwide. Cryptos boasts unique advantages in cross-border payment and online payment; besides, NFTs and other alternative assets are also recognized by celebrities and artists. These assets cannot be traded without a crypto wallet.

Yet how to manage so many kinds of crypto assets remains a big challenge. As we can tell, many users have to use more than one wallet, which is exactly the problem ViaWallet needs to address. Our goal is to ensure that everyone, whether he is an artist, a creator, a crypto investor, or a Web 3 user, can manage whatever cryptos he has with only ViaWallet.

6. Marketing is a central element for every project so that everyone knows its potential is vital to achieving the set goals. What is your strategy to attract new users and investors to your platform and keep them long-term?
Sharing the same values with other teams in ViaBTC Group, we put the product and user experience first, and have always been focusing on the product. To retain users, we will continue to improve the wallet, provide better services for users, and create positive word-of-mouth among them.

In terms of marketing, we encourage users to share our App with their friends and regularly hold events on Twitter in gratitude for users’ long-term support. We will also carry out product-related events in the future, but now I’m afraid we cannot disclose more specific information. Welcome to follow the ViaWallet App and our official account on Twitter to stay updated.

7. Is there any plan to launch a hardware wallet?
At present, we still focus on improving the user experience and security of ViaWallet, so there is no plan to launch a hardware wallet.

8. What have you done to make your platform run smoothly? If we find any bug that can be a threat to the functioning of the platform, how can we inform you? Do you have a bug bounty program or a customer support team?
The ViaWallet code will be audited by the security department and undergo pressure tests regularly. All such efforts are to secure ViaWallet and guarantee a smooth user experience.

If you find any problem using ViaWallet, please feel free to contact us via “Me-Suggestions” in the App or “Feedback” on the official site, or email us via [email protected].

9. Does ViaWallet have a tutorial/academy zone where we can learn the basics of a wallet such as depositing, withdrawing, staking, swap, etc.?
You can follow ViaWallet’s blog and help center on the official site, or check the blog through “Me-Blog” in the App. We will post basic knowledge and user guide concerning the crypto wallet regularly in the blog.

10. Does ViaWallet have any plan to support CET staking?
You can stake CET in ViaWallet through the third-party application in the Dapp browser.

11. How will ViaWallet and CoinEx maintain the utility of CET token?
As the user value-added privilege scheme in the CoinEx ecosystem, CET allows users to enjoy VIP services, privileges for special events, and the deduction of equivalent trading fees with exclusive fee discounts on CoinEx. Also, CoinEx will repurchase CET on a daily basis and burn it every month according to its revenue in order to reduce the CET circulation in the market and indirectly increase its value.

As the CoinEx Smart Chain (CSC) ecosystem advances, CET has been extensively applied as the native token and gas fee of the CSC ecosystem. Every interaction on CSC relies on CET. In the future, CoinEx will promote the usage and circulation of CET beyond its ecosystem. With CET used in more scenarios, we will make it more valuable.

CET cannot do without a wallet. As a major infrastructure, ViaWallet will take the lead in supporting CET in more scenarios, making itself the most secure, easiest-to-use crypto wallet for CET holders.

12. What other services or exchanges ViaWallet have integrated rather than CoinEx?
We have integrated the well-received BTC Acceleration feature of ViaBTC Pool in ViaWallet, an effective tool for users to confirm transactions in a relatively short time under network congestion. Also, ViaWallet has incorporated Swap. Just enter the crypto and amount for swap, and you can get real-time quotations and trade. This feature enables the direct swap, or even cross-chain swap, between any two of the mainstream crypto assets, thus greatly lowering the threshold for users.

13. What are your biggest hopes for the project you’re working on right now in terms of product development?
We remain focused on user experience improvement, security performance enhancement, multi-crypto management, etc. ViaWallet aims to lower the threshold for users so that users can manage their crypto assets effortlessly.

14. Do you have any plan to add support for L2 chain like Arbitrum, Optimism, Boba, Loopring, Zksync, etc.? Since L2 is hype lately so it will give you more advantages if you can support L2 in ViaWallet.
Speaking of Layer 2 projects, we have supported the asset management feature of Polygon and made the Polygon Dapp available on ViaWallet. We’ve been tracking the development of Layer 2, and evaluating relevant asset management features to be launched. For more product update plans, please pay attention to the notices on ViaWallet App and our official Twitter account.

15. The most important feature of a wallet with millions of users like Metamask is that it works easily on many devices and browsers. Does ViaWallet work integratedly on all browsers and mobile devices?
ViaWallet is available on both iOS and Android devices. And ViaWallet supports WalletConnect. You can scan a QR code to give authorization and get connected to a web-based Dapp on your computer. For more user guides, you may visit our help center and blog.

Thank you all for participating, and congrats to the winners. For those who miss the opportunity, don’t worry. Stay tuned and look forward to the next “You Ask We Answer”!

The Rugby League World Cup (RLWC) 2021 is set to kick off with a match between England and Samoa men on 15 October at St James Park and conclude in Manchester with the wheelchair final on 18 November and the men’s and women’s finals in a spectacular double header at Old Trafford on 19 November.



For the first time in tournament history the men’s, women’s and wheelchair competitions will take place at the same time with all 61 matches set to be broadcast live on the BBC, with over 600 players and 32 teams taking part in fixtures across 17 host towns and cities and 21 stadiums across the country including London, Manchester, Newcastle, York, Leeds, Coventry, and Sheffield.

This year’s tournament, delayed from 2021 to 2022 due to the Covid-19 pandemic, will be the 16th edition of the Rugby League World Cup and world-renowned crypto exchange Coinex will be cheering on all the teams as the Exclusive Cryptocurrency Trading Platform partner of the tournament.



Cryptocurrencies are playing an increased role in the sports industry and CoinEx are committed to making crypto trading easier, striving to become a gateway for global crypto users providing easy-to-use crypto products and pleasant, convenient crypto trading experiences.

Available in 16 languages, including Chinese, English, Spanish, French, and Portuguese, CoinEx offers products and services that span spot trading, futures contracts, margin trading, mining, AMM, CoinEx Dock, Pledging, etc. The exchange provides easy-to-use, secure, and reliable crypto trading services for over 3 million users across more than 200 countries and regions. Additionally, it features trading sections for BTC, BCH, and stablecoins, as well as 600+ first-rate, innovative cryptos, providing crypto users with more trading options.

Over the last year, CoinEx has earned user recognition with easy-to-use products, fast, stable performance, and smooth deposits/withdrawals.

CoinEx is now looking forward to witnessing the extraordinary performances of the competitors at RLWC2021 and being part of the biggest, best and most inclusive Rugby League World Cup in history.

In the crypto space, fiat currency transactions refer to the use of fiat currency to buy, sell or trade cryptocurrencies, and mainly include the “C2C” model and “B2C” model. Many mainstream exchanges provide fiat currency trading services for their users.



According to the latest official announcement of CoinEx, so far, the exchange has partnered up with 8 third-party fiat currency service providers, i.e. MoonPay, Banxa, Guardarian, Simplex, Mercuryo, Paxful, XanPool and Advcash, which support over 60 kinds of fiat currencies. With these third-party service providers, CoinEx users can buy mainstream cryptos such as BTC, ETH, USDT and USDC anytime they want.



I. Services available on CoinEx Fiat

The deposit and withdrawal service provided by CoinEx follows the “B2C” model. Different from the “C2C” model, the “B2C” model allows users to directly buy and sell Bitcoin and other cryptocurrencies at the desired price through the payment method provided by third-party fiat currency service providers on CoinEx.

1. Payment method

CoinEx supports various payment methods such as Visa, Master Card, Apple Pay, Google Pay, Bank Transfer and SEPA. The payment methods vary among third-party fiat currency service providers. For details, please refer to the [Payment Methods] of each service provider on the [Buy] page on CoinEx website.

2. Order limit

The lowest and highest order limits may be different according to each third-party platform. Please refer to the order limit of the selected payment partner. Take Simplex for example. Transaction limits for USDT purchase range from $200 to $18,000 per order. The time needed for processing transactions varies among the third-party service providers. Normally, users will receive cryptos within 30 minutes after they complete the payment process, and the actual arriving time shall prevail. Users can check the deposit record on the [Assets — Deposit] page or on the website of the third-party service provider.

3. No fees

CoinEx will not charge any fees during the crypto-buying process. CoinEx only provides third-party payment partners for users to choose from. For the specific rules of fees charged, please refer to the fees standard of the selected payment partner. Users should contact the customer service of the relevant platform if any problem occurs.

II. How to trade with fiat currencies on CoinEx

Trading with fiat currencies on CoinEx is very simple, and can be divided into several steps as below:

1. Log into the CoinEx website, and enter the [Fiat] page. Choose the digital currency to purchase, the fiat currency to pay, and pick a service provider;

2. Enter the amount to purchase, fill in the information on the third-party service provider website, and complete payment;

3. Check your purchased assets in Deposit History on CoinEx or view the order details on the service provider website.

It is worth mentioning that, to conduct fiat currency transactions on CoinEx, users need to complete KYC authentication first and complete their personal information. Up to now, CoinEx has partnered up with 8 third-party deposit and withdrawal service providers. That is the best proof of its persistent commitment to improving fiat currency trading services, providing users with more diverse deposit and withdrawal options and more convenient trading services, and making crypto trading easier for the world.

According to the latest official announcement of CoinEx, MoonPay, a deposit and withdrawal service provider, has been added to the third-party fiat currency service channel of CoinEx. So far, the exchange has partnered up with 8 third-party fiat currency service providers, i.e. MoonPay, Banxa, Guardarian, Simplex, Mercuryo, Paxful, XanPool and Advcash, which support over 60 kinds of fiat currencies. With these third-party service providers, CoinEx users can buy mainstream cryptos such as BTC, ETH, USDT and USDC anytime they want.

From September 28 to October 5, 2022, CoinEx launches a seven-day promotion along with the third-party fiat currency service provider MoonPay, where all CoinEx users can buy or sell mainstream cryptocurrencies including USDT, USDC, BTC, and ETH via MoonPay with 0% fees!



MoonPay is a third-party deposit and withdrawal service provider that builds payment infrastructure for cryptocurrencies. Offering main payment methods including debit and credit cards, local bank transfers, Apple Pay, Google Pay and Samsung Pay, it is committed to providing smooth, user-friendly conversion service between fiat currencies and cryptocurrencies. MoonPay remains active in over 16 countries and is trusted by 250-plus leading wallets, websites and apps. Sharing the similar vision with CoinEx, MoonPay aims to offer its users a fast and easy means of buying and selling cryptocurrencies.

This is the second time that CoinEx has jointly held a promotional event with a third-party fiat currency service provider. Days ago, the exchange just launched its first such promotion jointly with Banxa, and the seven-day promotion was well received among CoinEx users. To provide a versatile range of fiat currency service providers for users’ benefit and improve its services for fiat currency deposits and withdrawals, CoinEx has cooperated with MoonPay to roll out the promotion: “Buy/sell cryptos via MoonPay now and enjoy 0% fee”. During the event, users can buy or sell USDT, USDC, BTC and ETH on CoinEx via MoonPay with zero fees. Details of the promotion are as follows:

I. Duration

8:00 on Sep 28, 2022 - 8:00 on Oct 5, 2022 (UTC)

II. Participation requirement

All CoinEx users

III. How to participate

1. Go to the CoinEx “Fiat” page:

Web: Click [Fiat] on the navigation bar of the CoinEx website;

App: Tap [Fiat] icon on the CoinEx App homepage;

2. Select the fiat and crypto you need;

3. Select MoonPay as your preferred service provider;

4. Follow the step-by-step instructions provided by MoonPay to complete the purchase or sale.

IV. Services available on MoonPay

1. Purchase

Supported Fiat:

USD, EUR, JPY, KRW, BGN, BRL, CAD, CHF, COP, CZK, DKK, GBP, HRK, IDR, ILS, JOD, KES, KWD, LKR, MAD, MXN, NOK, NZD, OMR, PEN, PLN, RUB, SEK, THB, VND, ZAR, MYR, TRY, AUD, HKD, PKR, RON, SGD

Supported Crypto: USDT, USDC, BTC, ETH

Payment Method: Apple Pay, Google Pay, Visa, Master, Bank Transfer

2. Sale

Supported Fiat: USD, EUR, GBP

Supported Crypto: USDT, USDC, BTC, ETH

Payment Method: SEPA, Bank Transfer

V. Notice

1. CoinEx only provides third-party service providers for users to choose from when in need of selling or buying cryptos. Please contact the customer service of the relevant platform if any problem occurs.

2. CoinEx reserves the right of final interpretation of this promotion.

Follow CoinEx’s official website or SNS accounts to find out more about the promotion. In the future, CoinEx will partner up with more third-party service providers of fiat deposits and withdrawals in giving back to its users. Please stay tuned.

The market has remained bearish for nearly 10 months, and it seems that we are still no way near the next crypto bull. Despite that, some institutional investors have quietly started to buy low and plan for the bull.



MicroStrategy entered an agreement with two agents — Cowen and Company and BTIG — to sell its aggregated class A common stock worth $500,000,000, according to the filing with the U.S. Securities and Exchange Commission (SEC). It pointed out that the stock offering will be for “general corporate purposes, including the acquisition of bitcoin”, despite the fact that the company has lost over $1 billion regarding its BTC holding as of September 10, according to public information.



In addition to mainstream crypto assets, funds in the crypto market seem to be flowing to Web 3 games, a category that’s widely considered to be the starter of the next bull market.

As the bear market entered the next half of 2022, investments and fundraising campaigns in the Web 3 game sector have grown more frequent. The DappRadar report stated that Web3-based games and metaverse projects raised $748 million in August, 135% more than what was invested during July. Contrasted with that in June, however, the figure dropped by 16%. Meanwhile, in early September, Animoca Brands, the developer of The Sandbox and Crazy Kings, also confirmed that it has clinched a $110 million funding round, backed by Temasek, Boyu Capital, and GGV Capital. Subsequently, the SAND price surged up to $1 and now stands at $0.8761.

We can tell that the field of Web 3 games is regarded as a gem by both the crypto market and the conventional financial market, and the major institutional investors stopped waiting and started investing, which is a signal that the market might have bottomed out.



That said, the quality of existing Web 3 games significantly varies. Plus, in today’s bear market, project teams might easily run out of money, in which case they would not be able to keep maintaining or developing their game. This would, in turn, lead to the price slump of the relevant tokens.

Many big-name game studios have announced plans to go into Web 3 games, possibly because the current crypto market cannot foster a representative Web 3 game or because the traditional game industry is going through a bottleneck period.

In December 2021, Ubisoft announced its first foray into NFTs. In August, the company announced its partnership with The Sandbox (a blockchain sandbox game). It also plans to bring IPs like Assassin’s Creed, Just Dance, Far Cry, and Tom Clancy’s Rainbow Six to land in The Sandbox.



Apart from Ubisoft, Square Enix, the studio that developed the Final Fantasy franchise, recently announced that it has joined Oasys, a blockchain built for the gaming community. It is noteworthy that the studio also released its blockchain entertainment business division in April 2022.

Despite that, not all traditional game makers are confident in Web 3. In late July, the developer of Minecraft stated that NFTs and blockchains would be banned in the game. Last October, Steam also announced that it would ban games that use the blockchain to facilitate cryptocurrency and NFT trading.

Although Web 3 games represent an old narrative, the story is now told by different market players, including traditional game makers that excel in game development. Over recent years, there have been only a few legend games in the traditional game market. In addition, many hit projects are additions to existing franchises, and even Elden Ring is a spiritual sequel to the Dark Souls series. Facing the current bear, the market has been sluggish and needs a new story to attract traffic.

The relevant surveys show that the global game market will be worth $203.1 billion by 2022, and the number of players is expected to exceed 3 billion. If Web 3 games were to thrive, they would undoubtedly expand the fundamentals of the crypto market. By then, the market would have an impact on finance through blockchains, as well as the traditional game sector via Web 3.

The flow of money will lead us to opportunities, which benefit not only the market but also investors. Facing the market downturn, investors must act now to profit from the next crypto bull.

If you are interested in Web 3 games, check out the GameFi tokens listed on CoinEx:
https://www.coinex.com/marketstab=gamefi&sort=circulation_usd&page=1



Disclaimer: This article offers no investment advice, and all statistics mentioned herein are for reference only. The information provided herein may not be relied upon for investment decisions, for which you will be fully liable.

On September 13, 2022, the world-renowned crypto exchange CoinEx launched the 7-day promotion “Buy/sell cryptos via Banxa now and enjoy 0% fee” jointly with Banxa, a third-party fiat currency service provider. During the campaign, all CoinEx users can purchase or sell USDT, USDC, BTC, and ETH with 0% fees.



Instead of the “C2C fiat trading model”, on CoinEx, users buy cryptos with fiat currency through the “B2C fiat trading model” where they can buy and sell Bitcoin and other cryptocurrencies directly from/to third-party fiat currency service providers on the exchange. Right now, the exchange has partnered up with six such service providers, including Banxa, Guardarian, Simplex, Mercuryo, MoonPay, and Advcash, which support over 60 kinds of fiat currencies through Visa or Master Card. With these third-party service providers, CoinEx users can buy mainstream cryptos such as BTC, ETH, and USDT anytime they want.

As a third-party fiat currency service provider, Banxa provides compliant crypto-to-fiat services for crypto users and supports multiple payment methods, including global credit card providers, bank transfers in the EU, Australia, and the UK, and cash payments. At the moment, Banxa supports 31 different types of fiat payments on CoinEx and supports payment methods that include Visa, Master, SEPA, BANK, etc.

It should be noted that this is the first time that CoinEx has teamed up with a third-party fiat currency service provider to host promotional events, which indicates that the exchange plans to expand the scope of user benefits and reflects its commitment to improving fiat deposits/withdrawals.

During the seven-day promotion, all CoinEx users can buy or sell USDT, USDC, BTC, and ETH with 0% fees! The details are as follows:

I. Duration

8:00 on Sep 13, 2022–8:00 on Sep 20, 2022 (UTC)

II. Participation requirement

All CoinEx users

III. How to participate

1. Go to the CoinEx “Fiat” page:

Web: Click [Fiat] on the navigation bar of the CoinEx website;

App: Tap [Fiat] icon on the CoinEx App homepage;

2. Select the fiat and crypto you need;

3. Select Banxa as your preferred service provider;

4. Follow the step-by-step instructions provided by Banxa to complete the purchase or sale.

IV. Services available on Banxa Purchase Supported Fiat:

USD, AUD, CAD, CZK, DKK, EUR, GBP, HKD, NOK, PLN, RUB, SEK, JPY, SGD, TRY, AED, ARS, BRL, IDR, INR, KRW, MXN, NZD, PHP, QAR, THB, VND, ZAR, CHF, MYR, TWD

Supported Crypto: USDT, USDC, BTC, ETH

Payment Method: Visa, Master, SEPA, BANK

Sale

Supported Fiat: AUD, CAD, EUR, GBP

Supported Crypto: USDT, USDC, BTC

Payment Method: Visa, Master, SEPA, BANK

V. Notice

1. CoinEx only provides third-party service providers for users to choose from when in need of selling cryptos. Please contact the customer service of the relevant platform if any problem occurs.

2. CoinEx reserves the right of final interpretation of this promotion.

Follow CoinEx’s official website or SNS accounts to find out more about the promotion. In the future, CoinEx will partner up with more third-party service providers of fiat deposits and withdrawals in giving back to its users. Please stay tuned.

The most crucial change of the Ethereum Merge is the shift in consensus from Proof of Work (PoW) to Proof of Stake (PoS).

As the core of a blockchain network, consensus represents a set of bookkeeping rules. Guided by these rules, the nodes in the network are able to cast votes and validate and confirm transactions.



As its name implies, PoW (Proof of Work) is the proof of workloads, and the essential principle of PoW is that whoever works more gets more. PoW describes a system that requires participants to solve a difficult but easily verifiable problem to win the right to update blocks and reach a consensus.

For example, in the case of Bitcoin, SHA256 hashing is performed on the new string obtained via enumeration, and the goal is to identify the hash with the specified number of leading zeros. The more leading zeros there are, the more difficult the problem is. Once a node spots a random number that meets the requirements, it will be able to update the current block and win certain rewards.

Suppose there is a school where the students are asked to check class attendance by themselves because teachers are too busy, and the student who kept the attendance record for a day is rewarded with more credits. Attracted by the credit incentive, all students would like to keep the record. As the school does not want all the students to keep the record, it decided to release a very difficult math problem every day, and only the student who solved it first could keep the attendance record that day. In addition, the student who won the record-keeping right could receive the credit reward as long as he properly keeps the record that day.

This model under which the system (school) releases problems and users (students) solve them to update the block (attendance record) is defined as a PoW mechanism. The harder a participant tries to solve the problem, the more updating rights and rewards he will get.

PoW is simple and easy to understand. Plus, with the fine coding examples of cryptos like Bitcoin, this consensus mechanism is easy to implement. However, to ensure close intervals between the time points at which the problems are solved, a blockchain system often adjusts the difficulty level according to the number of participants. In other words, the more participants there are, the more difficult the problem will be. As the problems become more difficult, people have started to adopt advanced equipment (mining rigs) and consume a large amount of electricity to solve the hash problem, which has also led to an enormous waste of resources.

The rationale of PoS (Proof of Stake) is similar to the shareholding system in the real world. The more shares one holds, the greater a say he will have, and he will also be more likely to win the block updating right.

The case of PoS is more intuitive than PoW. Let’s continue with our attendance example. After running the previous system for a while, many credits have been rewarded to students. At this point, the teachers felt that it is too troublesome to release one question a day and decided to determine the record-keeping right via a lottery system where the probability of winning the lottery depends on the number of credits held by the students. Suppose the school has offered 100 credits and Smith received one credit, under this model, there is a 1% possibility that he would win the lottery. If Smith feels that 1% is too low, he could also buy more credits from his classmates in private to increase the likelihood of winning.

We can thus tell that the change in consensus mechanism as the result of the Merge means that staking validators will replace GPU miners as the new block generators of Ethereum, which will significantly reduce the consumption of resources. To participate as a validator, a user must deposit 32 ETH into the deposit contract and run the clients. After that, the user joins an activation queue that limits the rate of new validators joining the network. Once activated, validators receive new blocks from peers on the Ethereum network. The transactions delivered in the block are re-executed, and the block signature is checked to ensure the block is valid. The validator then sends a vote in favor of that block across the network.

1. What is Avalanche?
1) Avalanche, founded by Ava Labs in New York in September 2020, attempts to improve scalability without compromising speed or decentralization. Its Primary Network consists of three built-in blockchain networks:

2) Exchange (X) Chain: used for creating and trading AVAX tokens and other digital assets. Transaction fees are paid in AVAX via the Avalanche consensus protocol.

3) Contract © Chain: used for creating smart contracts. C Chain supports EVM-compatible DApps and uses the Snowman Consensus Protocol, which is a modified version of the Avalanche consensus protocol.

4) Platform (P) Chain: P Chain coordinates validators, tracks subnet activities, and provides support for creating Subnets. The chain also uses the Snowman Consensus Protocol.

All the three chains are verified and secured by Avalanche’s Primary Network.


Avalanche equips each chain with different functions, which improves speed and scalability compared to concentrating all operations on one chain. In addition, developers may design tailor-made consensus mechanisms according to the needs of each chain. The Avalanche consensus is one of the greatest breakthroughs made by Avalanche: validators rely on repeated sub-sampled voting to achieve fast, affordable consensus. The network also uses Subnets as a new way to scale horizontally, which enables the creation of customizable, interoperable blockchains.

It is noteworthy that of the three chains, only X Chain uses the Avalanche consensus, which makes it an instance of the Avalanche Virtual Machine (AVM). At the moment, X Chain is often used for interactions between the Avalanche wallet and exchange wallets. However, this does not represent the great potential and extensive use cases of X Chain. One of Avalanche’s visions is to bring more conventional assets onto blockchains, which requires it to define assets. For example, some asset can only be traded by people in a certain country, or within a certain period, or in other specific scenarios. Avalanche’s whitepaper defined X Chain as “a decentralized platform for creating and trading digital assets”. Such functions could help Avalanche achieve its visions, yet are often ignored.

2. What is the Subnet?

Similar to Ethereum, Avalanche also strives to improve the scalability and security performance of the network while keeping it decentralized, and Subnets are a key to achieving that vision. Avalanche’s Subnets use the Avalanche consensus, which is, simply put, a mechanism under which a node sends a transaction to a group of randomly selected validators and asks them whether the transaction is valid, and the answer given by most validators in the sample will be adopted as the group’s feedback. Next, the transaction will be sent to another randomly selected group with the same number of validators, and the above process will be repeated. The node will adopt the answer when the number of times it stayed consistent (consecutively) reaches a certain requirement.

Like the Primary Network, Subnets are responsible for validating and securing their own blockchain network. Essentially, a Subnet is a set of validators jointly responsible for the security of the corresponding network. This means that the Primary Network is also a special Subnet, and P Chain in the Primary Network serves all Subnets. Therefore, while the tailor-made Subnets create blockchains of their own, they still benefit from the security of the whole Avalanche network.

To become a Subnet validator, you must first stake at least 2,000 AVAX tokens on the Primary Network and become a mainnet validator. As such, Subnet validators are responsible for the Primary Network and its Subnet at the same time but do not have to process transactions on other Subnets. Within a Subnet, there can be multiple blockchain networks, all of which are maintained by the validators of that Subnet. That said, a validator node can act as the validator of different Subnets.

3. What are the features of Subnets?

Avalanche Subnets are highly autonomous to meet the demands of different projects.

a. Validator settings: Subnets can choose to have any number of validators to meet the demands of projects with different funding scales. On a Subnet, it requires at least five validators to ensure the healthy running of the network, and 10 validators are enough to keep the network secure and stable and to meet other needs that may arise in the future. Additionally, Subnets may also require some specific validator settings. For instance, it could ask validators to engage in KYC authentication in some countries to meet compliance requirements. This feature also applies to cooperation between companies. For example, a Subnet could grant one company control over validators to enable the internal circulation of information and avoid the leakage of commercial information;

b. Custom Gas Fee tokens: Subnets may adopt any token as the Gas Fee of the network, which makes the adopted token more valuable. In addition, they can also set the fee parameters to reduce expenses for users, which is a huge plus for GameFi and DeFi projects, especially those that have already established a large transaction volume. Such features enable the sound growth of projects over the long term;

c. Faster transactions: Subnets do not share network load with the mainnet, which means that they boast lower latency and higher TPS. Theoretically, there is no limit to the number of subnets one can create as long as there are sufficient validators;

d. Lower transaction fees: Compared to blockchains that run all the activities on one network, a multitude of Subnets and their validators come with less congestion.

Generally speaking, the core potential of Subnets lies in the fact that users can customize the rules of the network, thereby building a chain that’s more suitable for their business. For instance, blockchains targeting GameFi projects often require nodes to have advanced hardware configurations, and such chains might also set other requirements for validators. Over the recent period, Crabada’s Swimmer Network and DeFi Kingdom’s DFK Chain are the two most popular game-focused Subnets. As they improve the speed of the network and provide incentives, both Subnets have adopted their primary token as the Gas Fee, which expands the application scope of their native tokens. At the moment, only a few projects have launched a Subnet, covering Ascenders, Shrapnel, and Cryptoseal (in addition to Crabada and DeFi Kingdom). Most of these projects focus on gaming and are now under development.

4.How do Subnets differ from L2?

Notably, interoperability between Subnets can be completed directly with each other without having to go through a beacon/relay chain. This means assets can move freely between Subnets, which enhances composability, one of the most valuable features of blockchain. Let’s imagine a future where Subnets are independent projects, like today’s Crabada and DeFi Kingdom. In that case, the direct communication between Subnets means better, faster interactions between projects, which allows the decentralized world to offer more satisfying user experiences. For instance, NFT Subnets could quickly connect assets to DeFi Subnets, and a gaming Subnet may migrate functions to another gaming Subnet in no time. Such functions are only possible with Subnets. At present, the communication between L2 projects is extremely complicated. They must go through the Ethereum mainnet to interact with each other, which is as secure as on a public chain. However, that incurs problems such as significant non-interoperability and fragmented liquidity. For example, when it comes to L2 solutions such as Arbitrium or ZKSync, assets have to be transferred through a third-party bridge (there is no mature, secure cross-chain bridge on the market for the time being) or the Ethereum mainnet. Furthermore, such assets cannot move freely between L2 projects, which makes it difficult for different DeFi protocols to coexist and deliver win-win results.

The list of advantages of Subnets goes on and on. For instance, it’s easy (and cheaper) to deploy a new blockchain using the Subnet approach, and the chain could reuse the same validators. Despite that, their flaws are also obvious: Subnets cannot benefit from the security performance of the main chain, and their cross-chain bridge is also more vulnerable to attack. Such poor security is also the inevitable cost of improving interoperability. In the meantime, as there are fewer nodes, Subnets are significantly more centralized.

Such pros and cons mean that the Subnet solution is extremely target-specific. In other words, it does not apply to all protocols. For instance, simple Subnets are not suitable for protocols with greater security demands such as DEXs and lending protocols, which are at the bottom layer of DeFi, and the consensus-enabled security of the Primary Network suits them better. In addition, as Subnets use their own Tokens for paying the Gas Fee and staking, the total asset worth of the network is also limited (lower than the total worth of the Token). Plus, such Tokens tend to be volatile, which makes the Gas Fee unstable.

All in all, Subnet settings are more suitable for asset-light protocols such as GameFi projects. Subnets constitute a great choice if you want to quickly deploy a new chain for your game as they are more composable and cheaper.


5.What are the use cases of Subnets?

DeFi: Apart from the lower transaction fees, the high customizability is also one of the advantages of building DeFi protocols with Subnets. Protocols can customize their subnets’ rules and functions based on their specific needs. For example, Ava Labs is collaborating with the Aave Companies, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, Securitize and others to build a Subnet with native KYC functionality, targeting institutional DeFi. All DeFi apps hosted on this subnet could utilize this KYC functionality, removing the major regulatory roadblock adopted by institutions and enabling regulated institutions to explore the fast-growing DeFi space.

GameFi: Subnets could be a great choice for GameFi protocols as they will require their own dedicated blockspace instead of having to exist on the same chain as other protocols. Gaming protocols naturally require a lot of network capacity, and by existing on subnets, they don’t need to share traffic with other resource-intensive DApps. No wonder both new games and games on other blockchains, such as Shrapnel, Crabada, DeFi Kingdoms, Imperium Empires and Heroes Chained, are moving to Subnets.


Conclusion
Avalanche’s app-specific subnets provide an appealing, practical, and customizable way to scale blockchains. The features of Avalanche Subnets provide a unique value proposition for creators, developers, and users of L1 blockchains. Moreover, attracted by advantages such as fast interactions, quick transactions, and low fees, many protocols have adopted Avalanche’s Subnet as their on-chain solution.

Along with the boom of chains such as Cosmos, Polkadot, BNB (and its sidechains BAS), Near (a shard chain), and Oasis (a chain based on ParaTimes), the public chain field is becoming increasingly competitive. Relying on its unique Subnets, Avalanche could capture opportunities presented by the category. Amid the ever-changing landscape of the public chain sector, Avalanche Subnets boast a promising future.