Amazing piece, really eye opening stuff about Solana.
I am not a technical person by nature, but from reading this, I was able to draw this potential red flag about Sol's security, please share comments, suggestions, or information that will prove otherwise:
My one concern is with regards to the Blockchain Trilemma and how this applies to Sol's solution. Sol basically uses a hybrid centralized-decentralized model where validators must trust the lead validator to enter transactions to the ledger. The lead validator being a "centralized party" as they are the one party able to enter the transactions to the ledger, giving them full control at that given time. Of course, the lead validators do not know when they will be the Lead validator because this is protected by a randomized algorithm.
BUT what if a validator is able to crack this code. This would give the lead validator the ability to falsify transactions, and worse, can give this validator the power to kill Sol by doing irreversible harm. This is not possible with fully decentralized models such as ETH or BTC.
In other words, putting trust in a centralized authority, albeit an authority who doesn't know they are in control at the time - this runs the risk of a potential major hack.
This is exactly why ETH or others prefer to keep decentralization and security as its core must have's will trying to tackle scalability and speed ONLY if both decentralization and security are in tact. ETH is going to use sharding which will improve speed and scalability while keeping security and decentralization in tact. Sol is potentially sacrificing network security at the benefit of amazing TPS and negligible fees.
The question remains: Can the algorithms such as lead validator be kept secure or will validators be able to crack this code and ruin Solana's blockchain forever?
Total newbie here...this gave me an excellent 0 to 60 on Solana, as well as a bunch of jumping off points for other resources I can check out. Thank you!
I'm very intrigued by the tokenomics that Packy retelling Ben Sparango on value accrural of Sol. He says that projects are interested in having SOL going higher than their own valuations. For example Bonfida now strives on Solana, wont it one day try to dethrone the S-King? what's the rationale? Can it be told in another way? OK in real life as flight passengers we are told to put your own mask before helping others (like a child). Game theoreitcal point of view this mechanism is probably the most important in SOL value proposition. I'm from economics acad book wirter. Jim
I am just getting started learning about crypto, so take this for what it is - but Star Atlas, which is the first case study you mention, seems to me likely a massively overhyped project. I think this video paints a quite sober view: https://www.youtube.com/watch?v=62qV0SMfQ1I
One of the points you make in the bear case is developers wanting to use Solidity & Ethereum dev tools. Neon already has an EVM implementation live on the testnet - coming to mainnet this quarter.
This means all of Solana's performance - but write your code in Solidity and use all the Ethereum devtools. It also brings Metamask compatibility to Solana!
Awesome post, Packy! Solana holder myself! Although I'm really shocked you haven't been attracted to dive more into polkadot, especially since you're so against blockchain maximalism. I have the same thinking towards there being multiple "winners" in layer 1, which is what attracted me to polkadot. I'm still doing a ton of research on them myself but it seems polkadot enables multiple blockchain winners.
This is the most clear-eyed overview of Solana I've read to date, excellent!
PSSTT... Packy, your SOL Chart graphic is wrong. "Degen ape" not BAYC. Excellent post though!!
Amazing as always. Please keep it up!
Amazing piece, really eye opening stuff about Solana.
I am not a technical person by nature, but from reading this, I was able to draw this potential red flag about Sol's security, please share comments, suggestions, or information that will prove otherwise:
My one concern is with regards to the Blockchain Trilemma and how this applies to Sol's solution. Sol basically uses a hybrid centralized-decentralized model where validators must trust the lead validator to enter transactions to the ledger. The lead validator being a "centralized party" as they are the one party able to enter the transactions to the ledger, giving them full control at that given time. Of course, the lead validators do not know when they will be the Lead validator because this is protected by a randomized algorithm.
BUT what if a validator is able to crack this code. This would give the lead validator the ability to falsify transactions, and worse, can give this validator the power to kill Sol by doing irreversible harm. This is not possible with fully decentralized models such as ETH or BTC.
In other words, putting trust in a centralized authority, albeit an authority who doesn't know they are in control at the time - this runs the risk of a potential major hack.
This is exactly why ETH or others prefer to keep decentralization and security as its core must have's will trying to tackle scalability and speed ONLY if both decentralization and security are in tact. ETH is going to use sharding which will improve speed and scalability while keeping security and decentralization in tact. Sol is potentially sacrificing network security at the benefit of amazing TPS and negligible fees.
The question remains: Can the algorithms such as lead validator be kept secure or will validators be able to crack this code and ruin Solana's blockchain forever?
I just noticed you wrote this is a "sponsored deep dive"...so advertising then? Jesus Christ, the more I dig into crypto the more concerned I get.
the classiest ICO-ish pr stuffs i've seen in a while... at least you let us all know that this post was sponsored by the project.
... eww. not feeling this sub anymore.
this is awkward shilling sh**. Made me lose respect for you
Total newbie here...this gave me an excellent 0 to 60 on Solana, as well as a bunch of jumping off points for other resources I can check out. Thank you!
I'm very intrigued by the tokenomics that Packy retelling Ben Sparango on value accrural of Sol. He says that projects are interested in having SOL going higher than their own valuations. For example Bonfida now strives on Solana, wont it one day try to dethrone the S-King? what's the rationale? Can it be told in another way? OK in real life as flight passengers we are told to put your own mask before helping others (like a child). Game theoreitcal point of view this mechanism is probably the most important in SOL value proposition. I'm from economics acad book wirter. Jim
Really like your stuff, Packy!
I am just getting started learning about crypto, so take this for what it is - but Star Atlas, which is the first case study you mention, seems to me likely a massively overhyped project. I think this video paints a quite sober view: https://www.youtube.com/watch?v=62qV0SMfQ1I
Thoughts?
One of the points you make in the bear case is developers wanting to use Solidity & Ethereum dev tools. Neon already has an EVM implementation live on the testnet - coming to mainnet this quarter.
This means all of Solana's performance - but write your code in Solidity and use all the Ethereum devtools. It also brings Metamask compatibility to Solana!
https://thedefiant.io/neonlabs/
Great piece!
Packy, I must really appreciate you putting up this piece, very insightful and educative. Thank you
Wow Packy! It was hell of a super-post. Lots of things to learn and a whole lot of rabbit-holes to dig in. May the force be with you!
Awesome post, Packy! Solana holder myself! Although I'm really shocked you haven't been attracted to dive more into polkadot, especially since you're so against blockchain maximalism. I have the same thinking towards there being multiple "winners" in layer 1, which is what attracted me to polkadot. I'm still doing a ton of research on them myself but it seems polkadot enables multiple blockchain winners.
Great, great article . Keep it up!