TLDR

• Avalanche is horizontally scaling through subnets. Subnets are a subset of validators from the Avalanche Primary Network and can contain one or multiple customizable blockchains with different VMs. Subnets benefit from Avalanche’s high performance.
• Subnets must incentivise a validator set from the Avalanche Primary Network to secure the subnet. This validator set can be permissioned, semi-permissioned, or permissionless. This means subnets can be designed so that validators pass KYC/AML checks and comply with regulatory requirements from a certain jurisdiction, for example.
• The primary use case for subnets at the moment is gaming, with DeFi Kingdoms and Crabada establishing subnets.
• Ultimately, subnets will need to...