Why can Solana keep breaking new highs?

If you do a review of cryptocurrencies in 2020, several big words such as DeFi, institutions, leverage, etc. will inevitably be repeated over and over again. And the public chain seems to be no longer mentioned in 2020.

This is the last days of the public chain. Since 2016, we have heard the term "Ethereum Killer" for 4 years, and we have all seen it. In the last round of bull market, most of the surging public chain projects on the market were determined to replace Ethereum, to become a world-class operating system, and to migrate Internet applications to the blockchain network, but now, they have all disappeared. up.

Ethereum’s first-mover advantage is extremely obvious. At present, there is no decentralized ecology that can compete with the Ethereum ecosystem. comparable in number of developers, users, and applications.

So, how should the new ecology catch up with Ethereum?

The answer is to use a practical application that really attracts traffic from outside the circle. Solana is the best example of this.

Introduction of new users

Not long ago, the well-known travel application Maps.me announced the completion of a $50 million seed round of financing, led by Alameda Reasearch, with participation from crypto venture capital Genesis Trading, CMS, and Sino Global Capital.

Maps.me is an offline navigation app that provides route planning, map guides, and more. In November 2020, Russian Internet giant Mail.ru announced that it would sell Maps.me to Parity.com Group for approximately $20 million. The data shows that the app currently has 140 million registered users and 60 million active users who have remained strong during the epidemic.

The purpose of financing is the launch of Maps.me 2.0, and the core goal of 2.0 is to bring 140 million new Users are introduced to decentralized finance on the Solana network.

As a representative of the new public chain, Solana proves PoH, base station Byzantine fault tolerance, turbine (block propagation protocol ), Gulf Stream (memory-free transaction forwarding protocol), Haiping (parallel smart contract), pipeline (verification transaction), Yunsan (horizontally expanded account database), and archives (distributed ledger storage) and other 8 technologies, which solve public The impossible triangle problem that has always existed in the chain field.

This team from giants such as Qualcomm, Intel and Dropbox uses a global virtual clock using cryptographic proof of time transfer , replacing local timeouts based on local time measurements in each validator, reducing block times, reducing consensus messaging overhead, increasing TPS and increasing the number of nodes participating in consensus. Solana's maximum TPS exceeds 50,000, and the block generation time is about 400 milliseconds. It can have the speed of Layer 2 without Layer 2, and the handling fee is negligible.

The average total transaction fee per 1 million transactions is $10, which is equivalent to an average of only $0.00001 per transaction. Compared with Ethereum, which currently requires tens of dollars as a handling fee for any transaction to package the transaction first, new users on Solana are almost equivalent to the Internet experience.

In the current global financial environment, the advantages of decentralized finance are becoming more and more obvious.

The Federal Reserve, the European Central Bank, and the Bank of Japan have seen a sharp increase in currency issuance this year, among which the Federal Reserve is the most obvious, and the U.S. dollar Circulation will increase by nearly 90 degrees in 2020.

The interest rates of various central banks are also on a downward trend. The United States, the United Kingdom, and Japan have all used zero interest rates to stimulate the economy , and Switzerland has even launched a negative interest rate strategy.

In contrast, the interest rates in the decentralized financial world of cryptocurrencies are quite crazy, and the interest rates of liquidity mining The emergence of the DeFi world has made the development speed far beyond people's imagination, and the ecological track is becoming more and more subdivided, including lending, trading, insurance, interest rate swaps and other fields.

The most attractive traffic is the annualized rate of return of DeFi projects, not to mention that some DeFi projects can cost hundreds of years The deposit interest rate on mainstream DeFi lending platforms such as Compound and Aave can also reach an annualized rate of nearly 10%.

The Internet experience of the Solana network, superimposed with the high annual rate of return of decentralized finance, can supercharge Maps.me 100 million young users entered the DeFi world with the help of the built-in wallet and became on-chain users of Solana.

And Maps.me is just an example of introducing new users into the Solana ecosystem, and there are similar projects on Solana a lot of.

The layout of the new ecology

In the current public chain field, in addition to Ethereum and Polkadot, the ecological development of Solana has also gained More attention on the market. At present, the Solana ecology has covered DeFi, blockchain games and Web3 vertical fields, with more than 100 integrated projects, and a total transfer volume of over 10 billion, ranking first in the industry, and its development speed has far surpassed other new public chains.

For example, in the most important underlying asset stablecoin track in the DeFi field, Tether and Circle have successively announced in 2020 that they will USDT and USDC are issued on Solana. Up to now, USDT has only 8 network supports, and USDC has only 4 networks.

The oracle field is also covered, Solana has integrated with the leading oracle machine Chainlink, using Chainlink as the price data for all Solana applications solutions and standards.

In addition to some other tracks that have been covered by other public chains such as stablecoins, there are many others on the Solana network like Maps.me Such a unique ecology.

Decentralized derivatives trading platform Serum is the most concerned ecosystem on Solana, providing users with executable transactions At the same time, it allows users to experience completely decentralized cross-chain transactions. It is built on Solana and will be integrated with Ethereum in the future. With the help of Solana, Serum has developed into a component that cannot be ignored in the DEX field, with a 24-hour transaction volume even exceeding $8 million.

Kin, a social platform with 300 million registered users and completed a token financing of 100 million US dollars in 2017, also launched Users migrated to Solana and brought tens of millions of active users to this high-performance network ecosystem.

Human Protocol, which created the independent captcha service software hCaptcha tool, announced that it will launch a new Serve. Human Protocol is a blockchain-based human-computer verification + AI data network, a protocol that allows humans to complete common tasks through tools such as hCaptcha.

Audius, a decentralized streaming app with 800,000 active users and more than 150,000 songs, also announced that it will Porting the content management system from the Ethereum blockchain sidechain operated by the POA network to the Solana blockchain. Audius is in a similar position to popular music players like Pandora or Spotify, but the Audius platform allows artists to set their own terms. Also allows other developers to use its underlying content.

At the same time, for the use of the asset layer, Solana also launched its own cross-chain technology Wormhole protocol, which is a Solana The connection bridge with Ethereum enables the connection between the SPL token standard and Ethereum's ERC-20, and the assets circulating on Ethereum can also take advantage of the fast and low-cost advantages on Solana. During the window period when Ethereum's own Layer 2 was not perfect, Solana gave Ethereum developers a new choice.

In addition to attracting high-quality projects, Solana is also involved in ecological development at the incubation level.

Ecological Fund and Hackathon

On January 26, Coin98 Ventures, the investment arm of Coin98 Finance, a software company focusing on the deployment of blockchain, announced a partnership with the Solana Foundation to set up an ecological fund of up to US$5 million. The purpose of this new fund is to foster the Solana developer ecosystem in Southeast Asia.

A few days later, the Solana Foundation announced that it will jointly hold a DeFi-themed global hackathon with Serum. Winners will receive up to $400,000, with the top nine projects receiving $200,000. At the same time, there is an opportunity to compete for a round of seed financing to continue the development of the project.

The emergence of ecological funds and hackathons will make Solana's network ecology more mature. This is a service that most public chains cannot provide, but it is crucial to ecological development.

If you still have an impression, Blockstack, the first project in the world to pass token financing through the US SEC, once launched A developer mining activity, which selects high-quality DApps every week and rewards developers.

After several years of development, the ecology on Blockstack has already surpassed some public chains with high market value. Just like the subsidy gameplay of Internet App, such an operation strategy can improve the Blockstack ecology with the naked eye.

Similarly, the essence of the Solana Ecological Fund is also an ecological operation. With the supplement of the Ecological Fund, Solana now has a new Everything needed for the application, the ecological fund provides developers with development funds, the settlement of leading asset agreement projects provides infrastructure for developers, and network users provide traffic for developers.

The increasingly rich Ethereum ecology is an example for all public chains. The introduction of service fees into the original ecology of Ethereum is, in essence, equivalent to Layer 2 of Ethereum. But looking back at the development of the Solana ecosystem, it is actually far different from other public chains.

Since the launch of the main network, the speed of Solana’s ecological development can be seen. Not only is the DeFi ecosystem rich, Solana also relies on the traditional giant’s Settling in to attract users outside the circle has evolved a unique ecology that is different from other public chains in the industry. Solana's positioning for itself is no longer an Ethereum killer, but a decentralized solution that expands according to Moore's Law and provides high performance and low cost for large-scale applications.

The Internet will eventually evolve, and the current web2.0 application will eventually evolve into the future web3.0 application. With features such as rich ecology, high performance, and low transaction fees, plus the support of the ecological fund, Solana, which aims to become the infrastructure of web3.0 applications, will develop in 2021?

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