So-called ‘Ethereum Killers’ are a dime a dozen in the cryptocurrency space. Ethereum’s long-term growing pains encouraged dozens of development teams to ‘solve’ Ethereum’s high transaction fees and slow network speed – yet most did so by sacrificing a different leg of the blockchain trilemma. Relative newcomer, Solana (SOL), launched last year in another attempt to deploy smart contracts at an industrial scale. Solana’s Turbine system appears to offer a more scalable solution.
In recognition of their technological accomplishment, Solana’s price vaulted forward – particularly after the launch of their mainnet earlier this year. Aiming for institutional applications, Solana’s platform hosts a variety of legacy finance integrations with blockchain technology. As a result, considerable funding has flowed into Solana’s ecosystem through outside investment – including a $20 million partnership with South Korean ROK Capital.
Solana on the Web
Taking advantage of the recent NFT proliferation, Solana launched their Metaplex NFT platform. Metaplex offers artists a marketplace for their NFTs, allowing for the creation of individual, customized shops in much the same manner as traditional eCommerce platforms. The space is majority decentralized – allowing artists to handle the majority of their business themselves. As the system lacks facilitators as middlemen, more income routes directly to the artists.
In the financial world, Solana’s Oxygen platform hopes to integrate decentralized finance with traditional infrastructure.The goal is to allow users to interact with DeFi applications without engaging in the cryptocurrency industry – reaping the rewards without the steep associated learning curve. DeFi boasts exponentially higher interest rates than traditional investment vehicles – a fact that should draw savvy investors.
SOL in Traditional Finance
Alongside greater efficiency in the cryptocurrency space, Solana also partnered with Jump Trading to produce the Pyth Network. Pyth hopes to drastically improve the process of providing market data. Market maker GTS recently joined the group, providing a treasure trove of additional data analytics. The cost of accessing market data through traditional platforms continues to increase – something Pyth should mitigate.
As Solana’s presence increases, so too does their platform’s attractiveness to financial startups. A recent private token sale generated an investment of $314 million – showing the degree of investor confidence present for Solana. While Solana’s platform may not be the foretold Ethereum Killer, their narrower financial focus may serve their interests well.