Solana Was ‘The Chain’ That Ushered in Alternative L1 Wave: ByBit Report

Even though the narrative of an Ethereum killer has been in the cryptoverse for several years, the launch of Solana in 2020 gave its real traction.

A Step Further With Solana

Solana has been one of the most talked about blockchain networks since it launched in March 2020 and has recently emerged as the most preferred alternative to Ethereum.

ByBit, a cryptocurrency exchange, collaborated with Solana FM, a Solana blockchain explorer, to release a ‘Quarterly State of the Solana Network Report May 2022’ on May 18. SOL is the native token of the network and has its total supply capped at 521.9 million tokens with 65%, i.e., 339.3 million tokens currently in circulation, as per data from Solana Explorer.

“While many other L1 chains have built (or are building) their protocols around modular architectures and structures, Solana was developed as a monolithic chain,” stated the report. “This means that Solana is tackling the “blockchain trilemma”: the conundrum of scaling securely and cost-efficiently on a singular layer within a singular space. Concomitantly, their solutions mostly revolve around node-configuration and block space manipulation.”

Source: DeFiLlama

The report highlighted a few aspects that have been responsible for Solana’s explosive growth through 2021, as listed below:

Lower fees for transactions.

Quick transaction times.

High scalability.

$314 million token raise from venture capital firms like Alameda Research and Polychain Capital.

Transaction Processing & Congestion Issues

However, despite the network’s quick growth (or rather due to it), Solana has been facing several network issues that have led to numerous partial outages this year. As previously reported by Web3Wire, these partial outages have resulted from congestion on the network and have even lasted for over seven hours.

The network outages are usually due to distributed denial-of-service (DDoS) attacks. In such an attack, legitimate transactions are spammed to achieve a greater chance of succession. In addition, there are a couple of other issues that have cropped up in the recent times in terms of transaction processing and block production:

Validators using 128GB are going out of memory which leads to significant skid rates. This, in turn, results in scheduled block productions needing to be skipped.

Since transactions in Solana have an expiry date, users could submit multiple transactions simultaneously, which leads to them being processed in any order. If a transaction isn’t committed to a network block before it expires, users would need to try again, knowing that their previous transaction won’t be processed ever. However, if the transaction’s lifetime is short, users might not have the time to submit their transaction before it expires, leading to an increase in failing transactions.

Source: Solana Explorer

Among the hundreds of protocols that have been built on the Solana network, a handful of protocols have expanded their reach and community in such a manner that they have become the mainstays of the network Solana has built-in just over three years. The report highlighted the findings below about the performance of leading protocols on the network:

Serum leads the pack in terms of the highest daily transactions, followed by Mango Markets, Raydium, and Magic Eden.

Mango Markets witnessed an average of 220.85 transactions per daily active user, which is explained by bots executing transactions on the protocol. In contrast, Serum had an average of 42.67 transactions per daily active user, which is likely to be a combination of retail traders and trading bots.

The leading NFT marketplace on Solana, Magic Eden, had an average of 0.38 transactions per daily active user, a number in line with the protocol’s user growth. In contrast, OpenSea, the leading NFT marketplace on Ethereum, averaged 1.87 transactions per daily user, signaling that the growth of the NFT market on Solana could be more organic.

For the development of a platform that can adapt to any environment, you’ll need a large number of talented developers. Thus, Solana initiated an inaugural world tour of hacker houses to provide enthusiasts with an environment where they could work and network with like-minded peers. As a result, new initiatives and collaborations became feasible at an accelerated pace. As well to the above initiatives, Solana Pay also appears to be a promising development for the network. Through Solana Pay, users can pay directly with cryptocurrencies.

What is Solana:

Solana is a non-EVM compatible layer-1 blockchain network co-founded by Raj Gokal and Anatoly Yakovenko back in March 2020. Since its launch, Solana has become one of the top destinations for deploying Decentralized Applications (dApps) in the Decentralized Finance (DeFi) markets that have evolved significantly since 2020. 

Find more about Solana here:

Website | Twitter | Medium | Telegram | Reddit | Discord | Github | Blog

What is ByBit:

Bybit is a cryptocurrency exchange established in March 2018 to offer a professional platform where crypto traders can find an ultra-fast matching engine, excellent customer service, and multilingual community support.

Learn more about ByBit here:

Website | Twitter | Medium | Linkiedin | Facebook | Telegram

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