Market
VP Matt Sorg on How Solana’s Scaling and Transaction Issues
As the blockchain ecosystem expands, Solana aims to stay ahead of increasing demand through technical innovation and proactive problem-solving. Solana’s ability to handle more transactions than all other blockchains combined demonstrates its live operational capabilities. However, with growth comes the inevitable need to continually enhance infrastructure.
In a recent exclusive interview with BeInCrypto, Matt Sorg, the Vice President of Technology at Solana Foundation, discussed a range of topics — from Solana’s technical challenges and its efforts to tackle transaction congestion to maintaining decentralization and network security.
What makes Solana an attractive ecosystem for startups and developers?
Solana is representative of an ecosystem with which to collaborate with your application. Both of those things are pretty attractive for a startup.
You do not have to carve out a whole new ecosystem and make sure there are wallets and on- or off-ramps and USDC and USDT. You don’t have to worry about that. That is all there for you on Solana.
So, it’s really important for a startup to focus on its core competency. You’re not having to reinvent the wheel.
Developing on Solana really kickstarts people from that, and they don’t have to think about it. I think that’s part of the reason why the Solana applications have been relatively successful. The applications can concentrate on the unique thing they’re delivering to the world, not the infrastructure.
What do you see as the key technical challenges developers face when trying to enter the Solana ecosystem?
First off, it’s kind of like the same thing with focus. I think there are so many chains and infrastructure out there.
There’s this joke that there are more chains than apps, which I think is actually kind of true right now. There’s just an enormous amount of different chains and L2s and whatever pops up. So, I think that lack of clarity can make it hard for a founder to know where to shift to.
Solana is like a very low-friction, high-performance chain, but everybody promises that. The thing that we have is that we show it live. It’s not just like a promise of that.
Solana does more transactions per day than all the blockchains combined. That both means a supply and demand thing. Both chains are capable of doing it live and at very low fees.
Solana is known for its high throughput and low latency. What challenges arise when trying to maintain these performance levels as the network scales?
We have really pushed the needle on this. You can see we’re pushing it so hard that, as a lot of people saw in the early days, there were some outages.
The severity and duration of those are overblown, but any outage is not great. That has definitely improved over time. Part of it is just if you’re going to try to stretch the limits.
A lot of the other chains are single sequencers, very, very by design. They have low throughput and less room for error. There are fewer things that can trigger things. It’s just less complex.
But you’re only going to do 17 TPS if you lock yourself into that kind of thing. There’s no other EVM chain that really does more than 100, whereas Solana has, in live environments, done over 8,000. And that’s just from applications, not including votes.
Can you explain how Solana proactively addresses bottlenecks as demand continues to increase?
Every single time you 10x, you run into a new 10x demand and a new infrastructure challenge. It’s just the way things work generally.
One of our challenges is when that happens, it’s usually just some engineering concern. The most recent one that happened in April was some consistent congestion. It was hard to land transactions and stuff.
And there was all this FUD about failing transactions and all this noise. Failing transactions aren’t a big deal. The issue was actually earlier in the stack.
It was the Web2 components of the stack, the way that we implemented QUIC. It was using a library called Quinn, which is an open-source library from Google. We just had to rewrite it.
Are there any tools or SDKs within Solana’s ecosystem that developers should be excited about?
There’s a lot. There’s actually a very robust ecosystem. First, the chain itself has some properties that are basically SDKs to mint NFTs or mint tokens. You can use SPL tokens, Metaplex NFTs, or a variety of both of those things to mint them.
As a developer, you’re using already on-chain code that’s already audited. All I’m doing is submitting my configuration, which can be JavaScript, a game engine, Python, or Rust.
But it’s just normal front-end stuff. You don’t have to get re-audited in order to do that. If you want custom on-chain code, then yes, you need to do SVM, Rust, and on-chain stuff, but a lot of collaborative apps are out there that you don’t need to do that kind of thing.
Solana recently made headlines due to the rise of meme coins on the network. How does the Foundation view this surge in interest?
It’s a wild ecosystem. Legitimately, two of the founders of Solana will say anything on Twitter, and there’s just a meme coin of it, like five seconds later or usually multiple meme coins that are making fun of whatever they said.
I would say you can map it pretty closely to a lottery or casino. These are zero-sum games. You have people competing with each other at the end of the day. You don’t need infrastructure or development underneath it—just the narrative because that’s what you’re trading on with L2s.
I think part of why many L2s and L1s have struggled is because if they don’t have users yet, why not just trade the meme coins? If all you’re trading on is narrative, just go straight to the most liquid memes.
Cross-chain interoperability is becoming increasingly important. Does Solana have plans to enhance its interoperability with other chains?
Solana itself is very composable. All the transactions are composed of multiple instructions. Those instructions can be across a variety of smart contracts or what we call programs. Part of the reason Solana is so great is like Jupiter; for example, whenever it does a swap, it interacts with any number of DEXs to find you the best prices across a variety of them.
Solana is very composable and atomic, meaning all transactions happen or none do. So, it’s a very good user experience. Like I want to do something, oh, it’s going to happen, or it’s not, which, by the way, gets back into what I was mentioning earlier.
That’s where failed transactions come from. Sometimes, one of the conditions of the trade isn’t met, so it fails, and that should fail. If that condition isn’t met, it’s like something that you have defined for it.
It’s not the chain itself that is processing that failed transaction perfectly fine. It’s just that the condition wasn’t met. And that’s the first thing: Solana is already, at its core, all about composability.
The extra things that we’re concentrating on are bridges. The idea that we’ve talked about a couple of times now is that Solana has this low friction, and that’s where finance will go. So, being as connected to as many places that issue assets as possible is really important.
This isn’t us trying to replace any other chain or whatever, but if valuable assets are on some other chain and they want to interface with the liquidity and functionality of Solana, we want to make that as easy as possible to lower the friction so it flows to Solana, where there’s other liquidity and other functionality. So yeah, tons of bridges are coming out.
This is called intents, which are basically cross-chain, implicitly defined things that you want. Usually, there’s a bunch of fancy technologies underneath, like ZK, to prove that the intent was fulfilled. We’re working with some of the intent providers that are doing that.
As Solana validators continue to expand, what measures are in place to optimize decentralization and network security?
First, I want to make sure that it’s clear that the Solana validators are permissionless. They can enter and exit just as they please, and the protocol just adjusts. This is very different from many L2s and other L1s.
Ethereum is also permissionless, but even that requires 32 Ethereum to be minimal. Solana’s minimum is one. To be profitable, you need a lot more than that, but it is a permissionless protocol.
For security, there are a lot of developments. The most notable one that you’ll hear more about in the coming weeks is Firedancer, the second validator client on Solana, which gives validators more options on which client they want to run and also offers some redundancies. So if there’s ever a fault in one, the validators can hot-swap to the other. It’s a pretty powerful paradigm in terms of resiliency.
What is Solana’s long-term vision for decentralization and scalability?
The goal of Solana is to be this global synchronization of any data. Obviously, if you care about global synchronization, it probably had some value — financial data for sure, as well as DePIN data.
We’re less opinionated on exactly how it’s used. It’s a permissionless chain that we want to be able to facilitate finance and businesses. No animosity at all; we just want businesses to be set up for success.
Disclaimer
In compliance with the Trust Project guidelines, this opinion article presents the author’s perspective and may not necessarily reflect the views of BeInCrypto. BeInCrypto remains committed to transparent reporting and upholding the highest standards of journalism. Readers are advised to verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
SEC Moves Toward Solana ETF Approval Amid Pro-Crypto Shift
The SEC is quietly meeting with several issuers to discuss approving a Solana ETF, claims Fox Business reporter Eleanor Terrett. With Trump’s impending pro-crypto administration, the SEC seems more inclined to approve such a product.
However, anti-crypto figure Gary Gensler is still nominally in charge of the SEC, and public progress might not begin until 2025.
Solana ETF Approval Is Getting Closer
According to a scoop from Fox Business reporter Eleanor Terrett, the SEC and several ETF issuers are in talks to approve a Solana ETF. Currently, Brazil is the only country that has given this product a green light. As recently as September, Polymarket odds gave the SEC a dismal 3% chance of approving it. This reluctance, however, might soon be changing:
“Talks between SEC staff and issuers looking to launch a Solana spot ETF are “progressing” with the SEC now engaging on S-1 applications. Recent engagement from staff, coupled with the incoming pro-crypto administration, is sparking a renewed sense of optimism that a Solana ETF could be approved sometime in 2025,” Terrett claimed.
Terrett was very clear about the impetus for this progress in negotiations: Donald Trump’s re-election. On the campaign trail, Trump vowed to significantly reform US crypto policy, and one cornerstone was firing anti-crypto SEC Chair Gary Gensler. Gensler has apparently conceded to his impending ouster, and his replacement will undoubtedly support the industry.
Previous attempts have floundered at an early step in the process. Once the SEC officially acknowledges an application, it must confirm or deny it within a 240-day window. Previous filings have lingered in limbo at this stage. However, the list of candidates is now growing: Canary Capital filed for a Solana ETF in October, and BitWise did the same earlier today.
Nonetheless, these positive negotiations still only consist of anonymous rumors. The Commission has not publicly moved to begin this process, and Gensler is still nominally in charge. Terrett posits that the SEC will only make serious progress on the Solana ETF at the start of 2025. Compared to previous pessimism, however, this is a complete sea change.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
ETH/BTC Ratio Plummets to 42-Month Low Amid Bitcoin Surge
The ETH/BTC ratio, a metric measuring Ethereum’s price performance compared to Bitcoin, has reached its lowest point since March 2021. This development comes amid BTC’s brief rise to $98,000.
While the flagship cryptocurrency has increased by 7.45% in the last seven days, ETH has hovered around the same region, with investors raising concerns about the altcoin’s future.
Ethereum Continues to Lag Behind Bitcoin
In February, the ETH/BTC ratio climbed to a yearly high of 0.060. During that time, speculation spread that Ethereum’s price would begin to outperform Bitcoin and validate the altcoin season. However, that has not happened, as Bitcoin’s price has continued to make new highs
Ethereum, on the other hand, is yet to retest to reclaim its all-time high despite reaching $4,000 earlier in the year. This disparity in performance could be linked to several factors. For instance, both cryptocurrencies saw approval for exchange-traded funds (ETFs) this year.
However, while Bitcoin has seen billions of dollars in inflows, ETH has been inconsistent in attracting capital. Hence, the institutional inflow has driven BTC toward $100,000, ensuring that the ETH/BTC ratio drops to $0.033 — the lowest level in 42 months.
Further, the disparity in Ethereum’s performance can largely be attributed to sustained selling pressure. For instance, CryptoQuant data reveals that exchange inflows into the top 10 exchanges have climbed to 461,901 ETH, valued at approximately $1.50 billion as of this writing.
This surge in exchange inflow reflects large deposits by investors, indicating a heightened willingness to sell. Such movements typically increase the supply of ETH on exchanges, raising the likelihood of a price drop.
In contrast, a low exchange inflow generally indicates that investors are holding onto their assets, which is not the current scenario for ETH.
ETH Price Prediction: Crypto Could Retrace
As of this writing, ETH trades at $3,317, which is a higher close than yesterday’s. Despite that, the altcoin is still below the Parabolic Stop And Reverse (SAR) indicator. The Parabolic SAR generates a series of dots that track the price movement, positioning above the price during a downtrend and below the price during an uptrend.
A “flip” in the dots — shifting from one side to the other — often signals a potential trend reversal. As seen below, the indicator is above ETH’s price, suggesting that the cryptocurrency could reverse its recent gains.
If this is the case and the ETH/BTC ratio declines, Ethereum’s price could decline to $3,083. However, if buying pressure increases, that might not happen. Instead, the value could surge above $3,500 and toward 4,000.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Bitcoin Cash (BCH) Price Up, Leads Daily Gains
Bitcoin Cash (BCH) price has risen more than 10% in the last 24 hours, surpassing the $10 billion market cap and signaling renewed bullish momentum. The recent surge has brought BCH closer to key resistance levels, indicating the potential for further gains if the uptrend strengthens.
However, indicators like the RSI and ADX show that while the trend is improving, it is not yet fully strong. Whether BCH can sustain its upward momentum or face a pullback will depend on how it navigates critical resistance and support levels in the coming days.
BCH Current Uptrend Is Getting Stronger
BCH currently has an ADX of 19.31, up from 12 just a day ago. This increase indicates that the strength of the trend is gradually gaining momentum after being weak.
However, since the ADX is still below 25, it suggests that the uptrend has not yet reached a strong or sustained level of trend strength.
The ADX measures the strength of a trend, with values above 25 indicating a strong trend and below 20 indicating a weak or uncertain trend. While Bitcoin Cash is currently in an uptrend, the ADX at 19.31 suggests that the trend is still in its early stages of strengthening.
If the ADX continues to rise above 25, it could confirm a stronger uptrend, but for now, Bitcoin Cash price movement remains cautious, with room for further development.
Bitcoin Cash Is Not In The Overbought Zone Anymore
Bitcoin Cash has an RSI of 64.5, down from over 70 just a day ago. This decline suggests that while the asset is still experiencing bullish momentum, the intensity of buying pressure has started to decrease.
The drop below 70 takes BCH out of the overbought zone, indicating a more balanced market sentiment.
The RSI measures the speed and magnitude of price changes, with values above 70 indicating overbought conditions and below 30 signaling oversold levels. At 64.5, BCH remains in bullish territory, which supports the ongoing uptrend.
However, the slight decline in RSI could mean the pace of gains is moderating, potentially leading to BCH price consolidation before any further upward movement.
BCH Price Prediction: Will a New Surge Occur Soon?
If BCH maintains its current uptrend and gains additional momentum, it could continue its rise after climbing more than 10% in the last 24 hours.
This strength could push BCH price to test the resistance at $536.9. Breaking this level would signal a continuation of bullish momentum and could attract further buying interest.
On the other hand, if the uptrend fades away and reverses, BCH price could retrace to test the nearest support levels at $424 and $403. If these supports fail to hold, the price could fall further to $364, representing a potential 27% correction.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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