Benefits of Custom Blockchains

Custom blockchains offer a range of advantages for developers and businesses looking to create very custom & tailored solutions.

Enhanced Compliance and Access Control

While the C-Chain operates as an open and permissionless network, custom blockchains provide more granular control over user access and permissions. This feature is particularly valuable for applications that need to meet specific regulatory requirements.

• Authorized Access: Developers can configure custom blockchains to allow only pre-approved users to deploy contracts or initiate transactions.

This level of control helps ensure compliance (KYC, AML, etc) with various financial regulations and industry-specific standards.

Customizable Tokenomics

Custom blockchains offer flexibility in defining the economic model of your network. They allow for:

• Gas Token Freedom: Unlike fixed gas token systems (e.g., ETH for Ethereum), custom blockchains can use any token as their gas token.
• Economic Isolation: Your blockchain's economics remain unaffected by gas price fluctuations on other networks, providing stability and predictability.

Privacy and Confidentiality

While public blockchains offer transparency, many business scenarios require controlled visibility of transaction data. Developers building custom blockchains on Avalanche can enable:

• Selective Transparency: Private blockchains allow you to limit transaction visibility to authorized participants.
• Data Protection: Implement transaction encryption to safeguard sensitive information.
• Granular Access: Control which data is visible to which participants, supporting "need-to-know" access models.

Virtual Machine Flexibility

The ability to choose or create custom Virtual Machines (VMs) offers unprecedented flexibility. Avalanche custom blockchains allow for developers to have:

• Multiple VM Support: Unlike single-VM networks like Bitcoin or Ethereum, Avalanche Avalanche L1s can host multiple blockchain instances with different VMs.
• Ease of Use: Leverage existing VMs like the subnetEVM or create entirely new custom VMs using our SDKs to suit your specific needs.
• Network Effects: This flexible architecture creates network effects both within individual blockchains and across different Avalanche L1s and blockchains.

Scalability and Performance

Custom blockchains can be optimized for specific use cases, leading to improved scalability and performance. Launching a custom blockhain gives you:

• Optimized Resource Allocation: Dedicate computational resources specifically to your blockchain, avoiding competition with other applications.

Interoperability

Custom blockchains, especially within the Avalanche ecosystem, can be designed with interoperability in mind and can enable:

• Cross-Chain Communication: Facilitate seamless interaction between different custom blockchains in the Avalanche network leverage Avalanche Warp Messaging.
• Asset Bridges: Create efficient bridges for asset transfers between your custom blockchain and other networks such as the Avalanche Interchain Token Transfer.