The Benefits of Solana vs Ethereum | Design Journal
Hello Solstarter community! It’s been a few days since we’ve officially begun releasing details around the platform, and we aim to reveal full details through these introductory posts. Today’s topic of discussion will revolve around the Solana platform itself; how it’s different from Ethereum in design and architecture, how it handles complex operations, and importantly, how we aim to leverage these features as part of the Solstarter launchpad.
Solana as a blockchain delivers several different breakthrough solutions that help to make it one of the most performant Layer 1s in the world. There are a number of groundbreaking innovations put forth by the Solana team, each with an application to security, bandwidth, and decentralization. To summarize for readers who are likely more well versed on Ethereum, the Solana blockchain;
- Uses no state as part of its Programs (Ethereum stores state, making it slower)
- Has on-chain clock verification (for trusted timestamps, rather than block height)
- Streams transactions without waiting for global consensus (without sacrificing security)
- Miniaturizes data packets and transmits them using UDP (lower memory requirements)
- Removes the mempool (By forwarding unconfirmed transactions to upcoming validators)
All of these features and more enable us to confidently leverage Solana as the platform of choice for Solstarter. The key technical advantages here are the block speeds and low gas fees that will enable the Solstarter community to truly experience what a next generation launchpad platform looks and feels like. Of course, if all Solstarter had going for it was faster blocktimes, we wouldn’t feel confident in it as an offering to the community; after all, if all you’re looking for is a fast chain, there are plenty of them on the market. We’ll be diving into some extra benefits we win by using Solana later below.
We’ll keep the overall technical breakdown from bogging this article down, as there are several other key implementations that help differentiate Solana from Ethereum. In general, you can consider Solana a more advanced version of Ethereum, without requiring Sharding, a relatively new technology. Solana functions today, and you can utilize its full potential yourself! It’s a permissionless chain that allows anyone to build on it, without any of the bottlenecks of Ethereum.
For those looking for additional reading on the matter, we urge you to check out the articles the Solana engineers have published here for a better understanding of the system.
One of the key wins that Solstarter will be able to leverage will be with the token structure system on Solana. On Solana, everything is tokenized when possible, and this key design decision allows us to get some interesting wins over Ethereum. One such feature that Solstarter will have as a part of this is the token whitelisting system. Users who get whitelisted on the Solstarter platform will receive a whitelist token as part of the process. That token essentially grants access into the given Swap by the pool manager (in this case, pool managers are the teams running the sales).
Historically, one of the things that crypto tries to do is make things free and equivalent to all — which in general is why we often see so much whitelist sharing in communities and groups of investors. Oftentimes it’s users who wish to give their allocations to other individuals that see the most trouble with making such a deal work. It’s not particularly native to something like Ethereum, but on Solana we can deliver on that feature. By making whitelist tokens directly transferable, users will be able to “gift” their whitelists to other individuals on the platform.
This is a general win for the community — you can now help support your fellow traders and investors by giving them access to sales that perhaps they didn’t access in time, or missed. Another win is for SOS stakers. In general, not everyone will want to buy into every possible sale — yet you can still benefit your community or group of friends by winning a whitelist for a sale you weren’t planning on entering.
Additionally, it opens up the potential for token whitelist markets, which could potentially be a thriving community of individuals who buy and sell token whitelists. We’re excited to see this feature placed in the hands of the community, and may even add native support on the Solstarter dashboard for whitelist trading, allowing a safe and trusted place to buy and sell whitelists.
Tokenizing KYC in this manner is yet another win that we get from using Solana as our platform of choice. When users successfully pass KYC, they will be granted another token by the pool manager which greenlights them for a sale (along with the token whitelist). The key benefit here is that, though KYC tokens are not tradeable (there are plenty of reasons why!) it is the beginning of a complete migration from off-chain centralized solutions to on-chain KYC. Such an innovation is possible on Ethereum, though it has thousands of times higher gas costs and is nowhere near as blockchain-native.
Solstarter’s goal in the long term is to fully decentralize the process — putting as many things on-chain as possible, and this is an area that Ethereum sorely lacks. When we look at the way Ethereum is designed, it is extremely limited and prohibits much of the potential benefits of using blockchain. In fact, most developers are actively disincentivized by the system to avoid putting things on chain, and using off-chain solutions wherever possible.
Note that this is not an Ethereum hit piece- we love Ethereum, and think it’s great for some things. However, the design principles of Solana enable us to truly move toward a decentralized, on-chain future, and we think the launchpad platform of the future can only be built on such a solution.
The Solana blockchain enables low gas costs and faster transaction speeds; the community is well aware of these simple wins, though there are other lesser known features that we think truly lend themselves to Solstarter being the platform of choice for future projects looking to raise capital.
Solstarter at its core is a longer term project, with a vision that seeks to execute on the best things we believe crypto technology has to offer.
We’re only just getting started.