Solana Building: Will This Proposal Give It Edge Over Ethereum?

Solana is building. As developers introduce new systems, will it steal more market share from Ethereum in 2025?

The Solana versus Ethereum supremacy war is not ending anytime soon. Even though Ethereum manages the most assets, looking at the total value locked by DeFi protocols, its most formidable competitor continues to carve out more market share.

Looking at data, Solana Price Volume in 24h Price 7d is now the home of meme coins, as hundreds of thousands of these projects were minted mostly via Pump.fun in 2024.

Based on recent events, Solana developers are preparing for an even busier year. Yesterday, they unveiled a groundbreaking proposal to make the network more scalable, narrowing its gap to Ethereum.

For example, looking at the proposal on GitHub, developers seek to introduce a new hashing system that will address scalability challenges without compromising security. For the neutrals, this is a crucial step that, once implemented, could reshape the broader blockchain landscape.

Solana Developers Propose A New Hashing System

Combining the documents, Solana developers propose a new hashing system called SIMD-215 to address one of Solana’s pressing challenges: the “state growth problem.”

Developers observe that verifying and updating the “state of user accounts” requires even more computing resources as blockchain platforms onboard more users. This challenge presents a barrier to mainstream adoption that needs to be urgently addressed. If resolved and SIMD-215 is implemented, it would help Solana scale to “billions accounts and compute a “hash of all accounts” in practical time and space.

In this ambitious path, SIMD-215 introduces what is described as a “lattice-based homomorphic hashing function.” This solution will change how Solana tracks and verifies all connected user accounts by only processing changed accounts. This means that Solana won’t have to allocate resources to recalculate the state of every account.

Subsequently, this implementation will save resources by reducing computing costs, all while ensuring Solana is secure from the base level.

Interestingly, this proposal comes nearly seven months after Anatoly Yakovenko, the co-founder, highlighted the “state growth problem” in a tweet.

state is gonna grow, what are we gonna do? 😱

The problem comes down to this simple thing, new account creation has to actually create new accounts. Which means that a new account has to prove that it is new somehow.

This is trivial to do if the runtime has a full global…

— toly 🇺🇸 (@aeyakovenko) May 10, 2024

While welcomed, the rollout of this upgrade will follow the normal improvement process. For this reason, developers will likely gradually implement the hashing system, allowing all nodes to prepare before full activation.

Firedancer In Progress, Solana Attracts More Developers

It should be noted that this is not the only thing Solana developers are working on.

Firedancer, a client developed from the ground up by Jump Crypto, is being tested and should be implemented in the first half of 2025.

Once it goes live, the validator client will make Solana more robust, reducing events of blackouts.

Meanwhile, they recently introduced the Solana Winternitz Vault. The vault resists quantum computing threats and safeguards user funds once this technology becomes widespread.

As SOL rises in prominence, building and improving the base layer, the platform continues to pique developer interest. An Electric Capital report in early December reveals that Solana attracted over 7,600 new developers in 2024, flipping Ethereum (which had 6,400) for the first time in eight years.

During this time, the sixth most valuable platform posted more network activity than Ethereum as meme coins bloomed. With surging on-chain transactions, Solana also generated more fees than Ethereum for the first time in late October 2024.

Despite the stiff competition, Ethereum is still the largest platform, thanks to its first-mover advantage. Electric Capital said this has created “very, very deep network effects.”

EXPLORE: Bitcoin Txs Hit $19T in 2024: Top Web3 Wallet $BEST Raises $6.5M Ahead of Seismic Year For Crypto

Join The 99Bitcoins News Discord Here For The Latest Market Updates

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.

Read more