The rise of Layer 2: a new public chain Solana that does not take an unusual path

On August 16, CoinMarketCap data showed that the market value of Solana ( SOL ) exceeded US$16 billion and successfully ranked among the top ten cryptocurrency projects by market value. On September 9, Solana’s lock-up volume exceeded US$7.5 billion, setting a record. new highs.

At the “2021 World Blockchain Conference Hangzhou” a month ago, FTX co-founder and CEO and Serum consultant Sam Bankman-Fried (SBF) repeatedly praised Solana in his keynote speech, saying that it is the kind of ambitious and able to do it Centralization, especially geographical decentralization, but also a blockchain that can handle tens of thousands of transactions per second.

Although Solana was founded in 2017, many people first learned about it in the last year-FTX decisively chose Solana as the underlying public chain to build its decentralized trading platform Serum, not like most DeFi The application chooses to embrace Ethereum like that .

In the last year, Solana’s ecology has also ushered in a major explosion: So far, Solana has as many as 302 ecological projects, and the funds locked in Solana DeFi are as high as 11.6 billion U.S. dollars…

Solana is still an unconventional underlying public chain. It did not follow Ethereum in choosing sharding technology to solve performance problems, nor did it choose the mainstream Layer 2 expansion solution. Instead, it creatively relied on optimized hardware to achieve underlying scalability.

Today, let’s take a look at this high-performance, low-cost, and unconventional underlying public chain-Solana.

Creatively solve the scalability of blockchain

The rise of Layer 2: a new public chain Solana that does not take an unusual path

The “blockchain impossible triangle” means that a blockchain system cannot satisfy the three corners at the same time-decentralization, scalability, and security. It must be partially sacrificed At the expense of a certain angle, in exchange for the improvement of the index of the other angle.

In order to solve the impossible triangle of blockchain, most public chains chose to use sharding technology (such as the underlying public chains Near, Harmony, Elrond, ETH 2.0, etc.) on the basis of a certain degree of decentralization and security. , Or Layer 2 layering (such as the underlying public chain Nervos, Loopring, Celer, etc.) to solve the scalability problem.

Solana, who does not take the usual path, creatively designed a decentralized, globally available clock, which is realized through the “Proof of History”. Proof of history is a method of creating historical records that can prove that an event occurred within a specific point in time.

Through the verifiable delay function, the historical proof algorithm allows each node to use the SHA256 algorithm to generate a time stamp locally, eliminating the need to broadcast the time stamp in the network.

Therefore, the Solana blockchain decouples time and state to obtain maximum efficiency and throughput. In the March 2020 test, Solana achieved a maximum TPS of 56,000 per second on the test network; under laboratory conditions in May 2020, the peak TPS of the test network reached 111,000.

” Solana is a NASDAQ-speed blockchain  , it seems that the sentence written on the first slide of the Solana seed round is not a rhetoric.

The Solana team regards the blockchain as hardware and relies on optimizing hardware such as GPU, network and storage to achieve the scalability of the Solana blockchain. Therefore, some people commented that Solana is “a public chain that expands according to Moore’s Law and provides high performance and low cost for large-scale applications.”

Solana’s solution has another very important advantage, that is, there is no need to worry about the composability of DeFi Lego, while other public chains that choose sharding technology or Layer 2 solutions must face it.

In addition to high performance, another advantage of Solana is its low cost. Compared with the high handling fee of Ethereum, Solana’s handling fee is very cheap, usually only 0.000005 SOL is required for one transfer.

There are three main founders of the Solana blockchain, Anatoly Yakovenko, Greg Fitzgerald and Stephen Akridge, all of whom have worked for Qualcomm.

Among them, Anatoly Yakovenko has a very hard-core engineer background. He has worked at Qualcomm for 13 years. In addition to leading the development of operating systems at Qualcomm, he also led the development of distributed systems in Mesosphere and the development of compression systems in Dropbox.

“Bo Le” SBF assists Solana

The rise of Layer 2: a new public chain Solana that does not take an unusual path

“There are lovers, and then there are thousands of miles.”

For the emerging underlying public chain, the most important thing is not whether there is a dApp, but who (capital) is behind it. Among the many blockchains that fork the Ethereum code, the Binance Smart Chain (BSC) is currently the best developed, because the Binance Capital behind BSC is not only rich in wealth, but also has first-class operational capabilities and huge traffic portals.

In July 2020, Solana ushered in the first major turning point: the cryptocurrency trading platform FTX announced that it chose Solana as the underlying public chain to build a decentralized trading platform (DEX)-Serum. Behind FTX is Sam Bankman-Fried (SBF), a talented trader who has become a billionaire at the age of 29 this year.

SBF can be said to be Solana’s Bole, because before the FTX announcement, there were not many people who knew Solana. After all, the emerging public chain projects in the market are endless, and most of them are short-lived. After the FTX announcement, Solana’s token SOL rose 170% within a month.

More importantly, the influence of SBF has attracted a large number of developers to develop on Solana. In the Solana Hackathon held in November 2020, more than 1,000 developers registered and submitted 60 projects.

In Solana’s second hackathon in February this year, the number of registered people reached 3000, three times the number of the first time, and the number of submitted projects reached 100. In May of this year, Solana held the third hackathon. More than 13,000 developers registered and a total of 350 projects were submitted.

The rise of Layer 2: a new public chain Solana that does not take an unusual path

Figure: The number of registered developers and the number of projects submitted in Solana’s three hackathons;
source: BitDealer

In addition to SBF and FTX, Solana has also won the favor of other capitals. In June of this year, Solana received US$314.5 million in venture capital, led by well-known investment institutions Andreessen Horowitz (a16z) and Polychain Capital. In the previous July 2019 Series A financing, Solana only received US$20 million. .

Solana’s ecology

The rise of Layer 2: a new public chain Solana that does not take an unusual path

Among the many emerging public chains, Solana’s ecological development is very eye-catching. According to statistics on the official website, Solana has 302 ecological projects so far, covering various DeFi applications, including DEX, NFT, stable coins, oracles, wallets, browsers, and so on.

Some other mature projects also continue to integrate Solana, such as the public chain Terra , the oracle Chainlink, the mass economic agreement Oxygen Protocol, the data retrieval tool The Graph, and so on.

Below, just select a few representative Solana ecological projects for a brief introduction:

1、Serum

Serum is developed under the leadership of SFB and is also the first DEX on Solana. It has an on-chain order book function, transactions can be confirmed within one second, and the average transaction fee is $0.0001. Since its establishment, Serum’s trading volume has exceeded 350 million U.S. dollars, with an average daily trading volume of 4 million U.S. dollars.

2、Mango Markets

Mango Markets is a decentralized margin trading platform that provides up to 5 times leverage. Mango Market won the first place in the Solana Hackathon in March this year.

3、AcceleRaytor

AcceleRaytor is a modern end-to-end platform (IDO platform) established for different projects to raise funds on Solana and absorb initial liquidity. Currently, IDO projects through AcceleRaytor include Media Network, Mercurial, Synthetify, Solrise, etc.

4、Fabric

Fabric is a synthetic asset issuance agreement on Solana. Fabric allows users to mint, exchange and destroy SPL synthetic assets.

5、Wormhole

Wormhole is the first two-way cross-chain bridge of Solana and Ethereum. Wormhole allows users to lock ERC20 tokens in Ethereum smart contracts and mint corresponding SPL tokens on Solana.

6、Coral Reef

Coral Reef is an NFT project on the Solana public chain. NFT creators can use Coral Reef to split the ownership of their works to gain liquidity. This split will represent a percentage of ownership, rather than a specific part of the NFT. Coral Reef won the first place on the NFT track in the latest Solana Hackathon.

7、All Art Protocol

All-Art is an NFT liquidity pool and a new standard of NFT art running on the Solana blockchain. It won the second place on the NFT track in the latest Solana hackathon.

8、Aurory

Aurory is a game platform based on Solana (GameFi), using the Play to earn mechanism, allowing players to earn tokens and NFTs while playing games.

 04 
Summary

The data on the Solana Beach website shows that the current Solana network has 960 validators, mainly in North America, Europe and continents. The active staking (Active Stake) exceeds 380 million SOL, the staking rate is as high as 75.5%, and the real-time TPS has reached Over 2000.

In terms of ecology, Solana already has 302 ecological projects, and in the past three hackathons, the number of developer registrations and the number of project submissions have continued to hit new highs. For a public chain that only launched the Beta mainnet last year, Solana’s achievements are indeed quite dazzling.

The rise of Layer 2: a new public chain Solana that does not take an unusual path

A single flower does not mean spring, but a garden full of spring when a hundred flowers bloom. The world of blockchain requires a variety of underlying public chains to try different solutions. Although in the eyes of many people, the underlying public chain is already the “Red Sea”, but I still hope that more projects will enter this field with more front-end technological innovations in the future.

END

Author | Da Yi

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/59459-2/
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