CGV Research | Why Solana May Become the iOS of the Encrypted World?

If you’ve gotten an iPhone and occur to be a fan or lively participant of Solana’s techniques and apps, you might really feel a way of deja vu if you use them individually at many moments.

Do Solana and iOS have loads in frequent? It simply looks like a hunch. However, after analyzing and evaluating the two fastidiously from the historic and present views, I obtained an astonishing discovering: the earlier instinct could also be extremely near some sort of reality. Moreover, a daring prediction got here to my thoughts: someday in the future, Solana might turn out to be the iOS in the encrypted world.

In my view, though iOS and Solana belong to the Internet and encrypted worlds, respectively, they share the identical logic of the first precept that helps their improvement.(The following conclusions have been collectively organized by CGV FOF analysis group.)

Firstly, the final consumer expertise.

User expertise, as the core competitiveness of a product, has been talked about repeatedly. Due to Apple’s relentless efforts for the final consumer expertise, iOS appears to be all the time smoother than Android.

Virtual keyboard was not created by iPhone. Microsoft, Palm, and different smartphone producers have tried to advertise smartphones with the full contact display screen, however iPhone overcame the technical difficulties in capacitive contact display screen, multi-touch, bettering the display screen contact expertise to an untouchable stage.

For occasion, iOS offers first precedence for display screen response, and it responds to Touch—Media—Service—Core structure so as. Simply put, when the consumer touches the display screen, the system will first deal with the display screen show (Touch); whereas the precedence response stage of Android is Application—Framework—Library—Kernel structure, and display-related graphics and picture processing (Library) are solely in the third stage. There are a number of related elements, which immediately trigger an enormous distinction in consumer expertise between iOS and Android.

Similarly, though Solana shouldn’t be the first underlying public chain, it has attracted an growing quantity of crypto builders and customers by offering extraordinarily excessive TPS and low transaction charges, breaking by the greatest improvement constraint that almost all public chains face in the identical interval.

Performance comparability between Solana and different mainstream public chains

Data supply: RareLiquid

For occasion, Solana can take care of over 50,000 transactions per second whereas sustaining a block time of 400 milliseconds, and enhance the TPS primarily based on Moore’s Law, thus offering “predictability” of TPS scaling. Additionally, Solana’s low transaction charges are spectacular, that’s, estimated $10 for 1 million transactions.

Among them, Solana’s core consensus mechanism is “Proof of History (PoH)”, which goals to resolve the time drawback in a distributed community that lacks a single dependable time supply. By utilizing a verifiable delay perform, PoH permits every node to generate timestamps domestically through SHA256 calculations, which improves total community effectivity by eliminating the must broadcast timestamps throughout the time community.

The consumer expertise of public chains will be mirrored by the quantity of crypto wallets and the frequency of use. Take Phantom, one of the hottest wallets on Solana, for instance, it nearly integrates all the options of the Solana ecosystem, together with token swaps, assortment of NFTs and collectibles, connection to {hardware} wallets, anti-monitoring, Web3.0 assist, and the obtainment of incomes by pledging SOL.

Solana Phantom & Ethereum Metamask month-to-month lively customers

Data supply: Grayscale Building Blocks

Relying on the glorious one-stop expertise, Phantom has turn out to be the most well-liked pockets for the customers of Solana, with the month-to-month lively customers exceeding 1.2 million. During the two months from August to October 2021, the customers of Solana on Phantom elevated by 5 occasions.

Secondly, glorious UI design.

The consumer interface (UI), as a human-computer interplay window for providing varied capabilities required by customers, determines whether or not the software program or product is intuitive for customers to function.

iOS has a decent system for platform UI design specs. From buttons to icon kinds, and from picture dimension to decision, all of them require particular customization. In this manner, it not solely unifies the kinds of varied applications but additionally helps customers to get accustomed to the approach of utilizing iOS software program. Nowadays, the rounded rectangular design, with just one button on the entrance and the relaxation fully coated by a glass panel, has turn out to be the iconic design of the iPhone.

The challenge group ought to take note of UI design whether or not in the discipline of Internet, blockchain, or encryption. Besides, a “user-oriented” UI design will make the product extra common and promote higher. Dr. Nielsen, an skilled in human-computer interplay, claimed that usability is a prerequisite for survival in the discipline of the Internet. If an internet site is tough to make use of, then customers will instantly abandon it.

Some folks say that after they purchase tokens, they solely take a look at the emblem of the challenge. Though only a joke, it illustrates the significance of the visible design of the challenge. The emblem of Solana reveals that its group that pays consideration to particulars and has good aesthetic expertise.

The emblem shade of Solana is a gradient from inexperienced to purple. Similar colours will be present in nature, equivalent to the aurora borealis, mysterious and stylish. In addition, many cyberpunk-themed sci-fi films typically use purple, inexperienced, and blue of their photos, reflecting the prospects of Solana’s revolutionary blockchain know-how improvement.

Solana ecosystem (DeFi fields)

Data supply: Solanians

Many Solana initiatives, at first look, appear to be designed by the identical designer, with a really constant expertise in phrases of shade matching, interface design, and interplay design. The interface is intuitive, concise, and simple to function. Users can simply function Solana with out a lot coaching, as they’ll perceive the capabilities on the interface at a look after utilizing the software program.

According to CGV FOF, On a widely known Solana IDO platform, the UI efficiency of a challenge is given a excessive evaluation precedence when reviewing the challenge. It appears that Solana improves customers’ acceptance of Solana from the prime down by its incubation and assist of initiatives with excellent UI.

Thirdly, sturdy ecological assist.

Based on the second regulation of thermodynamics, remoted techniques don’t have any vitality alternate with the surroundings and all the time change spontaneously in the course of growing dysfunction (entropy), i.e., the precept of enhance of entropy. In view of this phenomenon, Prigogine, winner of The Nobel Prize in chemistry, proposed that the system have to be open to transferring from a disordered state to an ordered construction, that’s, the system should alternate matter and vitality with the outdoors world.

The opening of the enterprise ecosystem requires core firms to allow companions to have entry to their assets and capabilities, entice them to affix the ecosystem, and obtain worth co-creation by mutual empowerment.

Since its inception, Apple has hooked up nice significance to exterior empowerment, offering exterior builders with highly effective improvement kits and permitting them to attach customers by the app retailer, thus giving delivery to a big quantity of common apps equivalent to Instagram, Snapchat, Uber, and WhatsApp. Compared with different platforms, Apple’s launch mechanism for builders’ apps is fairer and extra cheap. The obtain rating knowledge on the software program retailer is true and dependable, which has created competitors system and surroundings for builders, making builders grasp an correct understanding of what their customers really need.

Solana has additionally devoted an ideal deal of effort to ecological development. Solana has a long-term funding plan to offer glorious initiatives with a full vary of useful resource assist, together with focused funding, VC referrals, technical assist, recruitment assist, advertising and marketing, and authorized assets.

Development of Solana and different mainstream public chains for lively builders

Data supply: Santiment

Take the hackathon for instance. In 2021, Solana formally held three world hackathons. The most up-to-date hackathon, with a prize pool of $1 million, over 15,000 registrants, and greater than 300 initiatives submitted by builders throughout the world, attracted the consideration and assist of a number of builders and generated a sequence of high quality Solana native apps.

Furthermore, it’s value noting that 90-95% of the hackathon builders expressed their willingness to hold out long-term improvement on Solana. These proficient builders will always energy the Solana ecosystem.

Fourthly, a captivating soul determine.

It could also be a bit radical to say that Steve Jobs, the founder of Apple, modified the world, however it’s honest to say that he was synonymous with the “spirit of innovation” pursued by the United States and all mankind.

Jobs was a large standing at the intersection of know-how and humanities. His mixture of idealism and perfectionism enabled Apple to take a totally totally different route from the conventional business.

Take simplicity for instance, Steve Jobs’ love of minimalism and his publicity to Buddhism, “let people directly know their heart without words”, exerted an ideal influence on Apple’s “no button” design. In addition to pursuing minimalism in product design, Jobs took the initiative to eradicate many product traces and solely launched 1-2 merchandise annually, with the very best quality.

In my opinion, Jobs was to Apple what Sam Bankman-Fried (SBF) is to Solana. I don’t imply to disclaim Solana’s unimaginable group, which is simply as revered as Apple’s tens of 1000’s of proficient engineers and improvement groups.

SBF was positioned on Forbes’s listing of the richest folks in the world 2021

Data supply: Forbes

Initially, SBF was a dealer and spent his early days at Jane Street, a quantitative large. He based Alameda Research (a quantitative buying and selling agency) and FTX (a centralized cryptocurrency alternate) with a group consisting of finance personnel—quantitative analysts, engineers, high-frequency merchants. They are seldom involved with the centralization/decentralization debate and concentrate on the “large-scale expansion of the blockchain”.

After leaving Jane Street in 2017, SBF took time to consider potential alternatives. He realized that “Cryptocurrency has many characteristics, it may be a very inefficient system, and there is a great demand for liquidity. This is basically: sudden huge demand, very rapid growth.” So, SBF tried to determine the final resolution to those points. Later, he found Solana.

Anatoly Yakovenko, a co-founder of Solana, as soon as described the scene of SBF’s first contact with Solana earlier than it was launched on the mainnet in 2019: During the check, 80 transactions have been processed in a mean of 4.02 seconds. This consequence impressed SBF. After speaking with the group and realizing Solana’s big improvement potential, SBF instantly determined to ascertain Serum (a decentralized derivatives alternate) primarily based on the Solana.

In this manner, Solana not solely received a brand new software challenge but additionally obtained an ideal encryption spokesperson (similar to NBA obtained James). From that day onwards, Solana was reinvented by SBF.

In January 2021, SBF mentioned on Twitter that, “I’ll buy as much SOL as you have, right now, at $3. Sell me all you want.” Though a joke, it revealed that SBF had excessive hopes for SOL.

Fifthly, a passionate fan base.

I nonetheless keep in mind that in these days, iPhone followers lined up in entrance of the retailer all evening to purchase a brand new era of iPhone, hoping to be amongst the first to personal the new iPhone, simply as they wished to get tickets to a celebrity live performance.

The iPhone launched by Apple yearly shouldn’t be solely a brand new product but additionally a brand-new cultural phenomenon. This is a market impact that no different firm is prone to have when launching a brand new product.

Taking the quantity of Twitter followers for instance, in accordance with statistics from CGV FOF, Solana has as many as 1.1 million followers, which isn’t as many as that of Ethereum (1.97 million) however ranks first amongst different mainstream public chains, Polkadot (1.01 million), Avalanche (450,000), Fantom (270,000), and Near (230,000).

Let’s check out the fan token, Solana’s meme coin is Samoyedcoin ($SAMO). It was impressed by Dogecoin, Sam Bankman-Fried (containing the letters S, A, and M), and Solana’s co-founder Anatoly Yakovenko (whose hometown is the birthplace of the Samoyed canine). Nowadays, SAMO has turn out to be the mascot and promotion ambassador of the Solana ecosystem, and the peak circulation market worth of SAMO’s token exceeded $700 million.

In the Solana group, you may typically really feel a totally totally different environment from every other public chain group. We typically see the “fierce quarrel” between ETH diehards and Solana diehards. It is totally totally different from the peaceable and joyful environment of the Near, Avalanche, and Fantom communities. This could also be the price Solana pays for selecting to take a special path from the ETH (EVM).

It could also be a stretch to attract an analogy between Solana and iOS from the above dimensions. Some persons are nonetheless criticizing the latest instability of the Solana community. But in the future, by community improve, enlargement of service nodes, and adjustment of incentive mechanism, these points will turn out to be an episode in the improvement course of of Solana.

In truth, Apple’s rise didn’t occur in a single day however was accompanied by a number of necessary turning factors that established Apple’s standing as king.

For instance, iPhone 4 was an epoch-making product that made breakthroughs in {hardware}, software program, and design. It was the first cellphone that used the industrial retina display screen, accomplished the twin evolution of cellphone digital camera {hardware} and algorithms, featured the most basic form, and used iPhone self-developed chips…

In cosmology, the huge bang, generated by a singularity, gave delivery to the universe we’re aware of. The singularity is a crucial turning level in historical past. The delivery of iPhone4 is a singularity in Apple’s improvement historical past, permitting Apple to embark on a fast improvement path.

I attempt to listing a couple of singularities to foretell Solana’s imaginative and prescient of turning into the iOS in the encrypted world:

——The quantity of C-end customers exceeds 100 million. On November 7, 2021, the quantity of lively customers of Solana’s Phantom pockets amounted to 1 million. It looks like an enormous leap from 1 million to 100 million. However, the exponential impact of the development of the encrypted world community will pace up the course of significantly. Anatoly Yakovenko, a co-founder of Solana, held a extra constructive opinion. He has repeatedly said that with the launch and operation of new applied sciences, Solana’s subsequent aim is to “attract one billion users.” You know, the quantity of VISA customers worldwide exceeded 3 billion as early as 2018.

—— Over 80% of the transactions are carried out by institutional customers. The participation of extra institutional customers in the encrypted market will entice extra capital. The bull market in 2021 is pushed by establishments. Many establishments, equivalent to Tesla, Microstrategy, Grayscale, and the ARK based by Catherine Wood, have entered the encrypted market one after one other. SBF deems that the crypto sector pushed primarily by potential institutional funding is prone to develop in the subsequent 5 years. In my opinion, in accordance with the Pareto precept (80/20 rule), if institutional customers turn out to be the foremost drive of the Solana market, and if their buying and selling quantity accounts for greater than 80% of the whole quantity, Solana will usher in a brand new spherical of improvement.

——Over a 3rd of Ethereum initiatives migrate to Solana. In June of this 12 months, Neon Labs, a cross-chain bridge between Ethereum and Solana, was launched. Neon permits anybody to run Ether good contracts on the Solana blockchain, making it simpler for builders to construct applications that work on each blockchains. It could be an thrilling time if greater than one-third of the initiatives which were deployed and developed on Ethereum are concurrently constructing purposes on Solana.

 ——Solana’s whole market capitalization reaches 50% of Ethereum’s. SBF reckons that Solana’s distinctive underlying know-how for growing the DeFi protocol will drive a spike in the price of its SOL tokens. He even believes that Solana can surpass Ether as the largest decentralized monetary platform. Ethereum’s present market worth (about $470 billion) continues to be almost eight occasions that of Solana (about $55 billion). If Solana reaches 50% of Ethereum’s market worth, will probably be an necessary milestone in the improvement of Solana.

The singularities of Solana ecological improvement (forecast)

Will Solana turn out to be the iOS in the encrypted world? Probably nothing.

I very a lot agree with Kyle Samani, managing accomplice of Multicoin Capital, “I think we’re going to see two things [Solana and Ethereum] coexist. We have iOS, we have Android. And, today, everyone knows you have to build an iPhone app and an Android app.”

Perhaps, in the close to future, Solana and Ethereum might turn out to be encrypted world’s iOS and Android, respectively. Fortunately, we’re all witnesses and participators of this nice change.

Note: This paper is a CGV FOF Research Report and doesn’t represent any funding strategies. It is for reference solely.

 About CGV FOF: the Master fund from Asia, composed of household funds equivalent to Japan, Korea, Chinese mainland and Taiwan, and focuses on investing in Crypto Fund and Crypto Studio. CGV FOF is headquartered in Japan and has branches in Singapore and Canada.


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    Solana Summer, Not Boring by Packy McCormick, 2021
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    An Introduction to Solana, Grayscale, 2021
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    Why Solana is the “World Computer” Blockchain Developers Need, Andrew Hyde, 2019
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    Understanding the Ethereum Killer Solana by Reading This Article, OKEx Research, 2020
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    Digital Assets: Beauty Is Not in the Eye of the Beholder, Goldman, 2021

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