Congestion and high gas fees: Solana reaches out to Ethereum!

Wed 05 Jul 2023 ▪ 3 min of reading ▪ by Mikaia A.
Getting informed Blockchain

Following on from The Merge and Shanghai, Ethereum is planning further upgrades to make the blockchain more powerful. While waiting for the promised major changes, Solana offers a “plausible” possibility to the Ethereum team. Find out what Anatoly Yakovenko, cofounder of Solana Labs, has to say.

Image of a computer circuit with chains, handshake and Ethereum and Solana logos

Ethereum mutated into Solana’s layer 2 solution?

Vitalik Buterin has been stirring up trouble in the crypto-sphere of late, announcing that he will stake only a tiny fraction of his ETH. The reason is that the security of Ethereum wallets remains problematic at the moment. Hence the inclusion of this point in the new roadmap for the future development of this blockchain.

Anatoly Yakovenko, aka Toly, recently tweeted this:

Anatoly Yakovenko’s proposal

What conditions must be met?

Solana’s co-founder laid out three very distinct conditions in the same tweet:

  • submission of all ethereum transactions to Solana;
  • submission of an SPV root for the corresponding state;
  • the establishment of a bridge timeout to prove the existence of a fault.

Of course, this comes with its drawbacks. And he cited three of them: basic SPV conflicts, invalid base computation (which could be corrected by Neon Labs Org’s EVM) and censoring.

In other words, Solana, with its high throughput and low transaction costs, is in a position to help Ethereum solve its problems of congestion and astronomical gas charges. At peak times, the network can’t keep up. Vitalik Buterin really fears for the future of his blockchain.

Case study

Decrypt uses the Solana-based Ethereum loan of USDC stablecoins as an illustration. In the event that the borrower decides to withdraw his real USDCs on the Solana network, the lender will be given a “junk token” on Ethereum.

“it would be safe to hold Solana assets on Ethereum, it would not be safe to lend them or maintain positions against them. This is due to the risk that an Ethereum fault could separate the Ethereum state on Solana from the Ethereum social consensus fork” Yakovenko points out.

This will lead to problems of inefficiency, as well as constraints on liquidity provision and trading. Coming from a blockchain driven by the ambition to rival Apple, this outstretched hand must be studied closely by Vitalik Buterin’s team.

Receive a summary of the news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don't miss any of the essentials of Cointribune!

Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.