A Distinctive Analysis of Ethereum-Compatible Scaling Solutions
Ethereum Blockchain and Ethereum Virtual Machine (EVM): A Scenario Exploration
Blockchain is the lifeline of cryptocurrencies’ foundational tech stack with promising human problem-solving potential. The underlying technology of Blockchain still isn’t well-known even by most crypto enthusiasts. Ethereum (a decentralized and open-source blockchain network) is a distributed finite-state or special-state machine. Its objective of existence is to ensure the special-state machine’s continuous, uninterrupted, and immutable operation. It lets developers build decentralized applications (dApps) via its open infrastructure. While the acclaimed Ethereum Blockchain platform gives enough developmental hope, limitations do exist for businesses:
1. Reduced throughput (leading to network congestion)
2. Weak UX (gas, delayed and outdated Proof-of-Work finality)
3. Absence of sovereignty (shared throughput or risk of clogging)
4. Non-customizable tech stack
5. Governance dependence
6. Highly volatile gas fees
7. Network speed
8. High computational power (with higher system energy consumption)
These shortcomings motivate projects to quest for Ethereum-compatible blockchains (ECBs) for future risk mitigation. Project developers can now leverage Ethereum’s high-utility ecosystem. They can do so whilst also accessing specialized frameworks to build and connect blockchains and protocols. As stated above, Ethereum is a distributed state machine wherein data structures hold all accounts and balances plus a machine state. This machine state tends to alter from block-to-block per the predefined set of rules. These specific rules pertaining to the changing state from block-to-block are EVM-defined.
Ethereum Virtual Machine (EVM) is a robust crypto development solution striving to elevate Blockchain development. It is a physical (single) entity which is maintained by several (thousands of) Ethereum client-connected computers. EVM is a computation engine, a decentralized computer having millions of executable projects. EVMs are core to the Ethereum Blockchain’s next developmental paradigm shift. EVMs store, execute and verify smart contracts. A runtime environment for smart contracts, wherein Ethereum nodes run on the EVM to sustain consensus across the blockchain.
Two of the promising EVM solutions are Neon EVM and Polygon (Matic). These novel solutions are committed to eliminate legacy fragilities of the Ethereum Blockchain. Let’s explore the peculiarities of Neon EVM and Polygon Matic in detail to decipher their distinct technicalities.
INTRODUCING NEON EVM
Solana blockchain’s smart contract, Neon EVM, is a swift, affordable and parallel processing deployment courtesy of Neon Labs. Neon Labs is building secure blockchain solutions. A paradigm shift is now imminent in the EVM game of Ethereum with Neon EVM. Set to disrupt scaling solutions via deploying a fully Ethereum-compatible environment on Solana, Neon EVM is a pure Rust implementation of EVM. A novel blockchain scalability solution, the Neon EVM deploys the finest from two chains: 1. Virtual Machine from Ethereum. 2. Scalability and Liquidity from Solana. Neon EVM (cross-chain) facilitates the usage of Ethereum tooling by dApp developers to scale and access liquidity on Solana.
INTRODUCING POLYGON MATIC
Polygon (Matic) is aspiring to emerge as Ethereum’s “Internet of Blockchains.” Dubbed to have been “built by developers, for developers;” Polygon operates on a sidechain, following a proof-of-stake-based consensus algorithm. It acts as a protocol and a framework for building and connecting ECB networks. Polygon aggregates scalable solutions on Ethereum (supporting a multi-chain Ethereum ecosystem). Polygon brings together Ethereum and sovereign blockchains. Polygon is pitched as a specialized framework for blockchain building and connecting (via a protocol).
NEON EVM AND POLYGON MATIC: The Key Distincts
Neon Labs (Neon EVM) and Polygon Network serve distinct purposes, offering a diverse set of solutions.
Polygon offers ETH compatibility, scalability, security, sovereignty, interoperability, user and developer experience, and modularity. The Polygon Network works on a sidechain (alternate blockchains). It doesn’t share all the identical security guarantees of the core Ethereum Blockchain. Polygon, to some extent, solves Blockchains’ legacy issues (i.e., high gas fees and slow speeds). It also offers a secured foundation. Polygon does act as a solution to significant development challenges, eliminating ecosystem fragmentation. But there are some limitations to the Polygon Network, as well:
- Level of decentralization is less
- The consensus mechanism it uses is a separate one (neither secured by layer 1 nor technically being a layer 2)
- Sidechain validators’ quorum could potentially do fraud: Stakes carry a risk of being slashed if the validator node frauds (i.e., double signing that also impacts the linked delegators at that checkpoint.
Neon EVM is a utility tool offering the Ethereum ecosystem dApp developers increased throughput and swift block time on Solana. It also lowers gas prices considerably with simply no need for changing the code. Neon EVM offers enough security as it is also capable of preventing denial-of-service threats. A compatibility layer for Ethereum on the Solana blockchain is created by Neon EVM. Anyone can run Ethereum contracts on Solana with Neon EVM. It also introduces incentivized transactions-facilitating Neon EVM operators to the Solana blockchain (on Ethereum dApp users’ behalf). These operators receive from dApps using the Neon EVM Ethereum-like transactions. These then get wrapped into Solana transactions for execution on the Solana blockchain.
Solana’s technical characteristics make it an emerging Ethereum competition. Neon EVM will let dApp developers easily tap into the Solana market, offering users enhanced experience without sacrificing on the interface or tools. Neon EVM shall initially run on the Solana testnet. As of now, the tools including Metamask, Remix, Truffle, etc., will work on Solana. Following its official testnet launch, the Neon EVM will let any dApp (UniSwap, SushiSwap, 0x, MakerDAO, etc.) to be used on Solana. Neon Labs is deeply committed to developing the Solana and Ethereum ecosystems. They are confident that EVM projects’ deployment on the Solana blockchain will lead to lower fees, ultra-fast speeds, and future-proof Solana scalability. After its EVM launch, Neon shall embrace a higher trustless solution. To fully benefit from a thriving EVM ecosystem, dApps must lower their gas fees and increase their transaction speed (ensuring a fine UX). Neon EVM is the solution to this profound challenge.
Neon EVM is a smart contract on the Solana blockchain that doesn’t require a parachain to run the EVM interpreter. It exists right on the order book, garnering it the fastest finality owing to its feature of interpreting EVM code in “parallel transaction processing.” Unlike regular ETH EVMs, code is sequential, meaning much higher throughput is possible with Neon. Anyone can use this without having to port the entire dApp to Rust. Neon EVM is on the Solana testnet as of now. It is set to support big projects like Uniswap, Sushiswap, MakerDAO and 0x upon its official launch. The impact of Neon EVM shall stay strong and relevant even after the ETH2.0 is finished tomorrow, given its low gas fees and speed advantage.
Some of the prominent features to note about Neon EVM and Polygon Matic are as follows:
- Transaction cost:
- Polygon Matic: $0.0051
- Neon EVM: $0.0015
- Neon EVM and Polygon Matic both require the least number of changes to contract and application code to operate on a new platform.
- Neon EVM and Polygon Matic both have planned a Complete Set of Web3 RPC Endpoints and nodes.
- Neon EVM runs inside of Solana-run BPF. It allows a user to initiate a transaction to load a contract within the Neon EVM. Upon doing so, the contract code gets written for Ethereum. Then a bytecode of that contract code gets loaded inside Neon EVM (i.e., the contract itself and its data gets stored inside Solana).
Neon Labs needs to take note of solving the issue of low number of validators on Solana. Although, 850+ validators is still fair enough for a mainnet that got launched in March 2020. Neon EVM will allow Solana to compete with EVM-compatible networks (such as Binance Smart Chain and Polygon Network). It will subsequently facilitate Solana to access liquidity to the tune of billions of dollars. Solana’s transaction speed and scalability give it the edge to compete with the Ethereum network. Given the stupendous potential of Neon EVM (Solana’s smart contract), the Solana-Neon synergy might as well steal Ethereum’s spotlight.
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