‘Only Possible on Solana’ – Founders Expose What’s Next

Larry Cermak, CEO of The Block interviewed Solana Labs Co-Founder Anatoly Yakovenko and Mert Mumtaz, Co-Founder and CEO of Helius Labs and discussed the bullish case for Solana. Below are some of the highlights.

Only Possible on Solana

Mert Mumtaz talked about the unique capabilities of Solana’s blockchain technology. He started by mentioning a demo with the Get Code team, showcasing Solana’s proficiency in handling microtransactions due to its low fees and predictability. This efficiency and speed impressed him, leading him to believe that such performance is only possible on Solana.

So, and the thought process behind it is like, we don’t […] Solana enables a much broader design space that you don’t want to just copy apps from the EVM and make them look slightly better. You want to just build things that can’t be like vampire attacks and go to other chains, right.

Mert Mumtaz

He also highlighted Solana’s distinct approach to storage and computation, where storage is more expensive but balanced by efficient computational processes. This balance allows for the creation of large numbers of digital assets at a lower cost. He cited the migration of projects like Render Network and Helium to Solana, driven by the inability of their original platforms to support their use cases.

Another significant aspect Mumtaz touched on is the concept of compression in Solana, which has shifted the mindset from scarcity to abundance in the world of NFTs. This shift allows for a more expansive and accessible approach to NFTs.

DeFi to Flourish on Solana – Though in Different Ways than on Ethereum

Meanwhile Anatoly Yakovenko reflected on the distinct evolution of DeFi (Decentralised Finance) on Solana compared to Ethereum. He observed that initially, many DeFi protocols on Solana were mere copies of those on Ethereum. However, the trend has shifted, and now successful DeFi applications on Solana are uniquely built for its ecosystem.

During the last cycle it was basically copy and paste protocols from Ethereum. But now stuff that’s successful is uniquely built on Solana. The whole magic premise of Solana is that everyone’s connected in one world computer, that’s the one chunk of RAM, that’s globally replicated.

Anatoly Yakovenko

Yakovenko mentioned Jupiter as an example, comparing it to Ethereum’s 1Inch. Jupiter stands out because it leverages Solana’s asynchronous communication and the high cost of gas fees on Ethereum, which 1Inch cannot circumvent. Jupiter’s uniqueness lies in its ability to atomically route transactions across numerous markets and aggregate liquidity efficiently, which is a direct utilisation of Solana’s infrastructure.

And also I think what’s really interesting is Jito, it’s kind of like a combination of flashbots and Lido which is also different. It’s not a copy paste from Ethereum in any way. It’s from the ground up created based on the nuance of fast rotating block producers and the way the staking system works on Solana.

Anatoly Yakovenko

Yakovenko emphasised that these developments on Solana are not mere replications of Ethereum’s features. While there might be some overlap in functionalities, applications like Jupiter offer a completely different design approach, tailored to Solana’s infrastructure and optimising its specific chain characteristics. This demonstrates a shift from imitation to innovation in Solana’s DeFi landscape.