Bitcoin and earlier versions of Ethereum, which are the first-generation blockchains, introduced radical ideas but had limited scalability and transaction speed. However, this situation led to the emergence of various innovations that would contribute to designing the second-generation blockchains and scaling proposals. This is where subnets come in significantly altering the blockchain landscape. In this blog, we will try to understand what subnets are; their role in blockchain technology; and their advantages within the blockchain ecosystem.
A subnet (sub-networks) can be described as a network within a network. It’s one way of dividing an IP (Internet Protocol) network into several smaller sub-networks for better security, manageability, and efficient utilization of network resources. In other words, it’s a place where devices with identical address space can communicate among themselves, exchanging data or sharing resources. A subnet within the blockchain universe allows segments of blockchain networks to be split into smaller bits for easier management.
Figure 1: Subnet Network. Source credits: (Developer Documentation and Tutorials for Metal Blockchain, n.d.), Coinbase, Avalanche
Let’s elaborate on how the subnets work within a blockchain network.
Blockchains benefit from such complicated functioning of subnets. Subnetting refers to splitting a larger network into smaller parts, each with a specific number of IP addresses. Each device in that subnet has a unique address which helps in effective and secure communication between devices. The subnet mask configuration is important in subnetting. This determines the number of bits that are necessary to uniquely identify both the network ID and host ID.
Segregation of devices within the network from those outside it is possible by use of sub-nets while enabling communication between them. In order for a transmitting device to determine whether another device is connected to the same subnet, it needs its IP address.
When this occurs, if the sending device belongs to the same subnet as the receiving device, then data will be sent directly. If however they are located on different subnets, data is sent by sending machine to default router which in turn forwards it right away to destination machine.
Public subnets are easier to set up and manage as they leverage existing infrastructure and security measures. However, they have limited control over customization or security and are subjected to platform fees viewed from different perspectives. Anyone can join them at their own will, validate transactions, and keep the network secure.
If a business needs enhanced customization, security, and governance for some sensitive or confidential aspects, then private subnets are the best solution. Yet, setting up and maintaining them requires higher technical knowledge and resources. They are typically restricted to only a few participants since they are controlled by access whereby only authorized agents can be involved in the network.
Are also available as deployment models, each tailored to address specific needs within a blockchain ecosystem.
Subnets have numerous advantages such as:
Some blockchain projects already make use of subnetting to improve their networks:
Subnets are proving to be an important tool that will enrich scalability, performance optimizations in the fast-paced environment which blockchain technology poses today. Subnets split up large, monolithic networks into smaller special-purpose pieces which permits blockchain ecosystems to grow and evolve in a way not previously conceivable.
In the continued evolution and growth of blockchain, subnets should increasingly play a major part in its structure. Whether you’re a developer poised to build the future leading application or simply interested in gnawing away at more details about this technology, keeping an eye on subnet developments makes total sense. A key part of the solution to building more usable, functional and flexible blockchain technology.
