As a seasoned analyst with over eight months spent within the Ethereum ecosystem, I find myself strongly aligned with Ryan Berckmans’ perspective on Solana’s potential to become the backbone of the global financial system. Having worked closely with the Augur Project, I can confidently say that the challenges Solana faces are not just technical, but also inherent in its design and governance structure.
According to Ryan Berckmans, a member of the Ethereum community, it seems that Solana is not suitable for supporting the proposed “new” global financial infrastructure.
Initially, Solana (SOL) followed a “single-structure” strategy, emphasizing its ability to manage worldwide transactions on a sole blockchain. However, Berckmans notes on X that prior to rebranding, Solana positioned itself as such, but later changed the label of their Layer 2 solutions from mere “Network Extensions” rather than openly admitting them as Layer 2 solutions.
Over time, Solana recognized the fundamental approach of Ethereum’s Layer 2 infrastructure, having observed key applications constructing tailored L2 application chains on their own platform.
The change in viewpoint became clearer as a significant Solana development group started focusing on constructing an SVM L2 (layer 2 scaling solution) within the Ethereum network.
There’ll be one global backbone – Ethereum
Ethereum is the backbone of the new global financial system of L2s and L1 apps. No other chain will come close.
Mert suggested that Sol can pivot to being the backbone. But Solana will never be the backbone. Here’s 5 reasons why.
Four…
— Ryan Berckmans ryanb.eth (@ryanberckmans) October 26, 2024
Several barriers in front of Solana
Berckmans, having worked for eight months as a top engineer on the Augur Project – a forecasting tool built on the Ethereum blockchain, highlights obstacles that might hinder Solana’s growth into a worldwide infrastructure pillar.
Initially, Solana functions with a single primary operator (Agave Rust), but for a robust global infrastructure, there should be at least three separate chain clients with a well-balanced distribution of stakes, as suggested.
The progress on their second project, Firedancer, is encountering significant setbacks because there’s no well-defined protocol for its development and a strong research community is yet to be established.
Recommending a 10Gbps upload for Solana’s extensive data transfer needs could potentially lead to significant centralization issues and operational constraints.
This demand puts into question the idea of a universal infrastructure capable of functioning in all locations.
The history of the platform experiencing downtimes and not having backup mechanisms at the fundamental level could potentially lead to extra hazards.
According to Berckmans, Solana doesn’t have the capacity to carry on creating new blocks when problems with finalization arise, unlike Ethereum.
As per Berckmans’ viewpoint, economic centralization poses a significant issue. Notably, Solana has nearly 98% of its initial coin offering allocated internally, contrasted with Ethereum’s 80% public sale. This raises questions about the true level of decentralization in Solana.
The development of zero-knowledge proof aggregation for layer 2 transactions poses a challenge to Solana’s dominance, as it emphasizes a different approach compared to Solana’s focus on scaling layer 1 execution. This new method is at odds with the demands for a worldwide infrastructure network.
Moving forward, Berckmans anticipates that Solana’s market share will likely keep falling in comparison to Ethereum’s L1 and L2 ecosystem on a year-over-year basis. He bases this prediction on the fact that major companies such as Coinbase, Kraken, Sony, and Visa are opting for Ethereum L2 solutions, which he sees as a sign of where the market is headed.
In summary, despite Solana demonstrating robustness in aspects such as meme coin expansion and value increase, its inherent constraints hinder it from functioning effectively as the foundation for a worldwide financial infrastructure.
Read More
- Dragon Ball Z’s Spinoff Daima Is Officially Available In English, And I Think Fans Should Be Watching For One Major Reason
- Wolf Man” Director Declares “Invisible Man
- Top gainers and losers
- A Terror Squad x Nike Air Force 1 Low “University Red” to Drop This Year
- Zamna In Tulum Is Taking Your Festival Experience To The Next Level
- ‘Violent Night 2’ Writers Discuss Who Could Star as Mrs. Claus
- Anurag Kashyap’s heartfelt birthday wish for ‘now married’ daughter Aaliyah Kashyap is proof that he misses her
- Hrithik Roshan’s ex-wife Sussanne Khan shares beautiful birthday wish with pic ft actor’s GF Saba Azad: ‘The best of your talent…’
- Raj Babbar’s daughter Juhi Babbar shares at what age father told her about his second wife, Smita Patil; any guesses?
- OHGEESY Announces ‘Paid N Full’ Album
2024-10-27 14:22