What is Subnetwork (Subnet)?

A subnetwork (subnet) is a separate blockchain protocol that is built to operate within a Layer-1 blockchain protocol (such as the Ethereum or Bitcoin network). It is quite common for there to be many subnetworks — up to hundreds, or even thousands in the future — that run in unison with and complement the parent chain. Subnetworks are commonly employed by various blockchain ecosystems in the industry, and all have different design parameters, depending on their individualized architecture and their proposed real world uses.