Tory Green Profile picture
Mar 13 23 tweets 17 min read
On March 16th, 2020, the world of #crypto changed forever

@aeyakovenko and @rajgokal launched @solana, ushering in the era of high-performance blockchains

I've spent over 100 hours researching the protocol

Here’s why I think $SOL could become a core layer of #web3

👇

🧵
2/

Solana is one of the largest #Layer1 s by market cap, TVL in #DeFi and #NFT sales (we will explain all these concepts in a bit)

It has a MC of $7.0BM, FDV of $9.8B, and its $SOL coin trades at $18.19

In 2021, the coin price hit $260.06
3/

This thread will cover the following:

• What is a Layer1?

• What problem does #Solana solve?

• How does it work?

• Who are the key players in the ecosystem?

• What are its #tokenomics?

• What’s the potential value of #SOL?
4/

🔶 What are Layer 1s?

Layer 1s (L1s) are the computers that run #Web3

Like most computers, they can run programs and host applications

Unlike traditional computer networks, they i) can’t be shut down, ii) aren’t controlled by any one entity and iii) anyone can use them
5/

🔶 Problem

Ethereum is the dominant Layer 1, but it has a major problem – it’s slow and expensive

For much of 2022, average fees were in the range of $10 — $30 per transaction (and sometimes were in the thousands!)
6/

🔶 Solution

As such, in 2021 a set of “alternative L1s” started to emerge to challenge Ethereum’s dominance with higher throughput, faster speeds and cheaper transactions

Some of the most prominent include BNB, Avalanche, Cardano, Polkadot and – of course – Solana
7/

🔶 Protocol Overview

Founded by former Qualcomm, Intel, and Dropbox engineers in 2017, #Solana is a single-chain, dPoS protocol whose focus is on delivering scalability without sacrificing decentralization or security

It is currently the 6th largest #L1 by market cap
8/

Like most Layer1s, the $SOL “computer” can handle a variety of functions including:

#NFT trading

#DeFi

• Payments

• Gaming

#DAO s

Let’s look at each
9/

🔹 NFTs

#SOL currently hosts over 20M #NFTs with a combined value of nearly $1B.

Notable projects include @DegenApeAcademy, @cryptokickers and @SolanaMBS

Key marketplaces on Solana include @MagicEden, @SolanartNFT and @SolSeaNFT
10/

🔹 DeFi

At its peak, the protocol currently held over $11B locked in #DeFi, generated an average of 430M of volume every 24 hours and boasted an average transaction fee of $0.18

#SOL has over 156 DeFi protocols including @MarinadeFinance, @orca_so and @RaydiumProtocol
11/

🔹 Payments

Solana’s high #TPS and low transaction fees ($0.00025) make it an ideal fit as a payments channel

There is over $4B in USDC in circulation on the network and > 280K active accounts

Solana’s payment channel is used by @Checkout, @circle, @Kytpay and others
12/

🔹 Gaming

$SOL is building a robust presence in gaming. Notable titles include:

@zepeto_official

@MiniNations

@staratlas

@AuroryProject

@panzerdogs
13/

🔹 DAOs

#SOL 's high throughput, low latency and low fees ($0.0025) make it an ideal fit for decentralized governance

To date, 140 DAOs have been created on Solana with $1B in AUM

Major DAOs include Star Atlas DAO, Mango DAO and @MonkeDAO
14/

🔶 How does it work?

#Solana is a “monochain” network - it executes all of the major functions of an #L1 on a single blockchain:

• Security

• Data

• Execution

Most L1s have abandoned monochain structures in favor of “modular” ones as they’re considered faster
15/

Like adding lanes to a highway, splitting a blockchain into multiple chains allows it to handle a lot more transactions and therefore run at a much faster speed

That’s why nearly every #L1 today uses a modular structure, and Ethereum is migrating to one as well
16/

Solana has taken a different approach though, using a concept known as “Proof-of-History”

#PoH acts as a “decentralized clock”, automatically ordering all transactions

(arranging transactions correctly is one of the hardest things for a decentralized network to do)
17/

Proof of History allows Solana to be unbelievably fast and cheap - boasting a theoretical TPS of 65,000 to 710,000 and fees under $0.00019 - WITHOUT sacrificing its monochain architecture

As we will soon see, this may prove to be a major long-term competitive advantage
18/

🔶 Competitive Advantage

#Solana boasts several unique benefits including

• Cost

• Speed

• Scalability

• Composability

• Decentralization

Let’s explore each
19/

🔹 Cost

$SOL is the cheapest major chain with average transaction fees of $0.00019

This makes it an ideal #blockchain for high-volume use cases such as:

• Micropayments

• Remittance payments

• Gaming
20/

🔹 Speed

#SOL 's maximum TPS is estimated to be anywhere from 65K to 750K and it has consistently proven real world speeds of 3,500

Unlike ETH, transactions on Solana are almost instantaneous (400ms)

This seamless UX is essential to recreating the Web 2.0 feel on Web3
21/

🔹 Scalability

Solana has proven its ability to scale

The network processes more transactions than all other L1s combined

Even when voting transactions are removed, Solana is doing 7x more transactions than its closest competitor
22/

🔹 Composability

Solana is unique among L1s in that it has chosen to retain its single-chain structure

While critics argue that so called monochains are inferior and risk becoming irrelevant, this might ultimately prove to be Solana’s biggest long-term advantage
23/

Monochains allow for very efficient communication between dapps and may be able to support products and uses cases - such as flash loans – that wouldn’t be possible in a modular architecture

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Tory Green

Tory Green Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @MTorygreen

Mar 11
There’s a popular misconception in the #NFT space that OpenSea is no longer enforcing creator royalties

This is NOT TRUE

@opensea, @blur_io & @the_x2y2 all still FULLY enforce creator royalties

(if you know how to ask)

Here’s an explanation that a 5YO can understand

👇

🧵 Image
2/

This thread covers:

• Why royalties can’t be enforced on-chain

• How they’re actually enforced

• Why marketplaces cut royalties

• How OS attempted to save them

• Why people *think* OpenSea stopped paying royalties

• The current state of royalties

• What's next?
3/

🔶 Why Can’t Royalties be Enforced On-Chain?

NFT royalties aren’t actually enforced “on-chain”

Contrary to popular belief, they aren’t pre-programmed into the code of most NFTs

In fact, many believe that doing so would be technically impossible
Read 25 tweets
Mar 10
Want to find the next $SOL or $MATIC?

Pay attention to a new breed of L1s known as "parallel processing” chains

Protocols like @Aptos_Network, @SeiNetwork and @SuiNetwork claim > 160K TPS and sub-second finality

Here are the 5 things you need to know to gain an edge

👇

🧵
2/

This thread will cover:

• What are the problems with existing L1s?

• How does parallel processing fix these problems?

• What new L1s are using this technology?

• What are the problems with parallel processing?

• What’s the long-term potential?
3/

🔶 What are the Problems with Existing #L1s?

There’s no denying that #Ethereum has achieved tremendous success

In just a few years, it has:

• Created > $150B in value for DeFi

• Generated > $35B in NFT sales

• Supported > 11K DAOs

But it's not without its problems
Read 34 tweets
Mar 8
What #defi narrative has a $1 QUADRILLION-dollar potential?

Decentralized perpetuals are a nobel-prize worthy innovation, and protocols like $GMX, $DYDX, $GNS, $PERP, $VELA, $WOO and $LVL are leading the way

Here are the 7 things you need to know to master this market

👇

🧵
2/

This thread will cover the following:

• What are derivatives?

• What are perpetuals?

• What makes them unique?

• What are decentralized perps?

• How big is the market for decentralized perps?

• Who are the key players?

• What is the long-term potential?
3/

🔶 What is a derivative?

Derivatives are financial instruments that derive their value from an underlying asset such as a stock, bond, commodity, market index or currency
Read 30 tweets
Mar 7
$MATIC has outperformed every major L1 by ~5x over the past 180 days

Unfortunately, fewer than 1% of people truly understand what drives their success

It all comes down to ONE reason – one thing they do better than anyone else

Keep reading to learn @0xPolygon's secret

👇

🧵 Image
2/

As mentioned, $MATIC has appreciated 27% over the past 180 days

That’s almost 4x better than its closest competitor (most comps were actually in the red for this period)

So why is the protocol outperforming? Image
3/

Is it due to its high TPS? Novel architecture? Strong word of mouth?

I’d argue it’s none of those things

As Chris Sacca famously said, “Ideas are cheap. Execution is everything.”

And #Polygon EXECUTES … Image
Read 16 tweets
Mar 6
🚨 WEB3 TREND ALERT 🚨

Fully on-chain gaming is one of the hottest narratives in #web3

But 99% of people don't understand why

Here's a short overview why it's so important

(and how projects like @darkforest_eth, @0xcurio and @OPCraft are breaking the P2E mold)

👇

🧵 Image
2/

Gaming is one of the hottest areas of Web3

Given its popularity and huge market size, many predict that it will be the first technology to “cross the chasm” and introduce #Web3 to the broader market

But current offerings may not be enough to get us there
3/

Historically, the most popular games such as Axie Infinity and Star Atlas have only been “partially” on-chain

This has limited their functionality and appeal

But a new breed of games – known as fully on-chain games – is offering consumers a better experience
Read 16 tweets
Jan 13
@Livepeer is one of the hidden gems of the #metaverse 💎

It’s an essential piece of a multi-trillion market, but 99% of people don’t know how it works or why it’s important

Below I’ll explain in terms a 5-year-old can understand

(and why demand for $LPT may skyrocket)

👇

🧵 Image
2/

Livepeer is a decentralized marketplace for video transcoding

(I’ll explain what this means in a second)

It's powered by the $LPT token which trades at $4.52 (for a FDV of $122M)
3/

This thread will explain:

• What is video transcoding

• Why current methods for transcoding are inadequate

• How #LPT solves that problem

• How it works

• The #tokenomics of $LPT

• Why demand for the $LPT token may skyrocket in the next bull market
Read 35 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(