Solana is crypto’s decentralized light out of CeFi opacity
Mark Hall, core contributor to Hubble Protocol and Kamino Finance on the Solana blockchain, says:
The launch of the Bitcoin network provided the world with a new asset class and a new way for people to trustlessly and transparently interact. It’s undeniable that blockchain technology can change the world, but it’s a question of when blockchains will be able to support more than a niche group of early adopters.
Solana is the closest chance the crypto community has to build applications that a billion people will use one day. Many forget that the underlying technology of a Layer 1 blockchain is far more valuable than the price action of the chain’s token, and many teams are continuing to build on Solana while allies like Jump are working to battle-harden the network for the future with a second client.
There are just under 2,000 validators finalizing around 4,000 user-initiated transactions per second (TPS) during Solana peak use, and improvements are pushing these numbers higher. The closest competitor chains have yet to break 1,000 TPS, and it would be remiss to discount the network effects that have made Solana a bastion of DeFi and NFT communities.
Solana has definitely taken a few hits on the chin in the news cycle this year, but the technology still remains the same. It’s the only blockchain that can feasibly host an order book that matches and settles trades in the same transaction, whereas so much compute is demanded from running an order book, the majority of crypto is traded through centralized exchanges (CEXs) that have recently cast a shadow over the industry.
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Crypto needs Solana because the network provides a real chance at decentralizing most of the factors that have led to insolvent businesses that lack transparency and on-chain proofs of reserves. DeFi will continue to be a tech-head experiment before it can provide broader solutions, and before DeFi can offer broad solutions, it needs to be able to serve a broad audience with speed, affordability, and at humongous scale—all boxes Solana ticks.
We’ve seen a lot of businesses go down in this bear market, and many of them claimed insolvency with little warning. By building a better system that operates entirely on-chain, it will be much more difficult for bad actors in this space to perpetrate unsustainable and predatory practices without the public noticing what’s happening.
Solana is the only chain that has the capacity to build a more transparent and sustainable crypto future. We’re going to continue building and improving DeFi on Solana as the network continues to improve its performance and increase its ability to onboard millions of new users.
In fact, hundreds of validators could leave the network tomorrow, and Solana would still have over a thousand nodes churning out truthful transactions. So long as there are still trustworthy nodes pushing some of the cheapest and fastest transactions in crypto, then we’re going to take advantage of this amazing opportunity to build on world-changing tech.”