Analysis of the developments of the Solana network: Do the actual developments underpower the possibility of a comeback from Solana?
Analysis of the developments of the Solana network: Do the actual developments underpower the possibility of a comeback from Solana?
Solana News: The future prospects of the Blockchain network
Lately Solana, a popular cryptocurrency, has attracted a lot of attention on crypto twitter. However, opinions about the future of this altcoin are very different. However, one should not ignore the strong and lively community that is frolished in the Sol Coin network. Recently we have already published a comprehensive analysis of the Solana ecosystem and examined the technical and economic developments of the network.
Solana is a layer 1 blockchain that has a quick, very cheap and a flowering ecosystem. Although there are many other Layer 1 blockchains, Solana, as one of the few Ethereum competitors, has made a name for itself that can efficiently process a high number of transactions. Despite some technical challenges, Solana is still one of the most popular L1 blockchains.
The main problem of Solana used to be occasional network failures that affected trust in the reliability and safety of the blockchain. But if these problems belong to the past, could Solana celebrate a comeback? It is unlikely that Solana Ethereum will replace as a serious competitor, especially in the Defi area. Security and network stability are extremely important in defi applications, which is why Ethereum is still the most successful defi ecosystem. However, Solana has good chances of gaining market shares in microtransactions, crypto games and other consumer apps that require low transaction fees.
It is noteworthy that Solana has recorded a significant increase in the monthly transactions of gaming projects since the beginning of 2023, especially through the Star Atlas project. The Solana Foundation also plans to increase the robustness of the blockchain through the introduction of various validator clients, similar to Ethereum. However, this upgrade will take a few months, as it requires the implementation of the Validator client Firedancer, which is expected to support between 600,000 and 1.2 million transactions per second.Another breakthrough of Solana is the introduction of "state compression", a technology that enables lower costs for data storage on the blockchain. This is particularly important for NFTs, since the shaping and sending of NFTS for 10 million users on Solana only costs around $ 200, in contrast to the previous $ 2.5 million. Thanks to this technology, Solana is 1.6 million times cheaper than Ethereum and even 1,600 times cheaper than polygon.
An interesting step by the Solana Foundation was also the introduction of a $ 10 million financing to promote AI-based applications for the network. This makes Solana the first big L1 project that creates targeted financial incentives for AI projects.
Most L1 blockchains focus on winning the L1 war by copying Ethereum defi applications and offering cheaper and faster transactions. But this is not enough to be successful in the long term. In my opinion, the only chance of new L1 blockchains is in their specialization. This is exactly what is special about Solana-the developer community tries to be innovative instead of just replicating the Ethereum ecosystem.
It is also positive that Solana no longer recorded failures in the second quarter of 2023. The network reached an operation of 100 % and spent a whole quarter without failures. The upcoming update with the Validator Client Firedancer will show whether Solana can improve its scalability and reliability.
All in all, Solana is a promising project that should be kept in mind. It is an innovative L1 blockchain with numerous advantages and a lively community.