Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
Home»BLOCKCHAIN NEWS»Solana shows the dark side of monolithic blockchains
BLOCKCHAIN NEWS

Solana shows the dark side of monolithic blockchains

By Crypto FlexsApril 29, 20244 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Solana shows the dark side of monolithic blockchains
Share
Facebook Twitter LinkedIn Pinterest Email

Everyone agrees that blockchain needs to expand. What they disagree on is the method. This is the “modular” vs. “monolithic” debate playing out across the industry, and it’s one of the most interesting and sometimes controversial debates.

Modular scaling requires moving microtransactions to a layered system at Layer 2, or even Layer 3, anchoring them on the main chain. This approach adopted by the Ethereum (ETH) community has a major drawback. This leads to network fragmentation and poor user experience.

Monolithic scaling, best exemplified by Solana (SOL), requires keeping all transactions on the same chain and optimizing the network through hardware, software, and consensus upgrades to provide more throughput. The main benefit of this approach is a better user experience. The biggest drawback is that it cannot work without sacrificing the features that make blockchains attractive in the first place: decentralization and elasticity.

Related: Runes Protocol Will Spark a New Season for Bitcoin After Halving

Proponents of the monolithic approach often misunderstand the basic services that permissionless chains provide. Not like that Transaction Processing — That’s what centralized networks do. Decentralized networks offer the following scarce assets: Safe block space. Think of it as fuel. But it is for a decentralized economy. Like all scarce assets, secure blockspace is in limited supply. But because demand fluctuates, the final determinant of who gets to use it is price.

There is an old joke in the commodities industry: “The best cure for high oil prices is high oil prices.” Higher prices could potentially increase supply in the long run. But it’s not always possible to extract more product. More importantly, higher prices now reduce demand. They force everyone to use their goods more efficiently and set prices for smaller users.

Solana’s network was most recently down in February. Source: X

It may seem unfair, but the goal is efficiency, not fairness. The alternative is for a third party, such as the government, to ration or subsidize the fuel. Neither works as intended. Rationing leads to long lines, and subsidies lead to waste. Think: children having fun playing and factories not working.

Welcome to the current state of Solana. The monolithic chain has experienced high transaction failure rates in recent months due to a surge in demand during the memecoin craze. Users continue to try to submit transactions, making the problem worse. Solana does not have network mempools, but now has de facto queues.

Users have been complaining about Solana’s service outages for years. Source: X

This is expected when the price of secure block space is too cheap.

Modular chains provide different layers of secure block space to different users. A transaction in ETH costs $20, but only $2. cent I use Arbitrum. But Solana wants to provide as much security for a $1 transaction as a $1 million transfer. Even if it’s not necessary for a dollar transaction like children playing.

Related: Bitcoin Halving Won’t Profit 600% This Year, So Adjust Your Strategy

To be fair, one of the upgrades Solana developers are working on is a better fee market that is more responsive to demand. However, if these upgrades work, smaller traders will be priced out of peak times. Unlike modular chains, there is nowhere to go.

Other solutions Developers are working on ways to expand networks with upgraded software and faster hardware. What they don’t realize is that doing so will only result in more small transfers of value. If you price a scarce product low, there is no limit to its demand. enough. When the Soviet Union subsidized bread, people fed bread to their animals.

Meanwhile, core network infrastructure is becoming more centralized and less reliable. Chains that are optimized to always run at peak performance are more likely to go down, as Solana has done periodically.

The intent of a monolithic approach to scaling may be laudable, but the results are not. Not if you value decentralization and resilience.

Omid Malekan Adjunct Professor at Columbia Business School Rebuilding Trust: The Curse of History and the Cryptocurrency Cure for Money, Markets, and Platforms.

This article is written for general information purposes and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Rabby Wallet integrates XRPL EVM chain with peersyst

September 15, 2025

Skale Labs fairly publishes a technical white paper and introduces the industry’s first “encryption proof” consensus protocol.

September 10, 2025

Coindesk July 2025 Report: Stablecoins and CBDC

September 5, 2025
Add A Comment

Comments are closed.

Recent Posts

The fullback of $ 16 of the chain link (link) can set a parabolic price rally.

September 18, 2025

Animation Powerhouse Maggie Kang To Join Programming Lineup

September 18, 2025

MEXC Joins Forces With Lombard Finance (BARD) To Launch $1 Million Prize Pool Extravaganza

September 18, 2025

What is the next after the Fed’s 25bps is cut? Everything you need to know

September 18, 2025

The XRP market value surpasses Shopify, Verizon, and Citigroup. Whales sell 40m coins.

September 18, 2025

Green Hood Contracts Thanksgiving Summary -Ackee Blockchain

September 17, 2025

BetFury Is At SBC Summit Lisbon 2025: Affiliate Growth In Focus

September 17, 2025

FED Mining’s Cloud Mining Platform Is Helping Users Earn $8,800 Per Day, And XRP’s Growth Is Driving Market Enthusiasm.

September 17, 2025

Stablecoin Holdings Drop As Investors Pivot To SOL, XRP, And Altcoins

September 17, 2025

Flipster Partners With WLFI To Advance Global Stablecoin Adoption Through USD1 Integration

September 17, 2025

Zircuit Launches $495K Grants Program To Accelerate Web3 Super Apps

September 16, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

The fullback of $ 16 of the chain link (link) can set a parabolic price rally.

September 18, 2025

Animation Powerhouse Maggie Kang To Join Programming Lineup

September 18, 2025

MEXC Joins Forces With Lombard Finance (BARD) To Launch $1 Million Prize Pool Extravaganza

September 18, 2025
Most Popular

Trump tariffs can reduce XRP prices by 40% according to Spook Risk Traders.

March 28, 2025

SecondLive introduced on Blast mainnet

March 14, 2024

Cryptocurrency project sues Chainalysis

December 26, 2023
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.