Busting Solana Myths – Stays, Competition and Technology with Matt Sorg of the Solana Foundation – SlateCast #38

Haru Invest

The Solana Foundation’s Product and Technology Lead, Matt Sorg, spoke with CryptoSlate’s Akiba about Solana and its future in the crypto realm.

Akiba began by asking what drew Sorg to Solana. In response, Sorg said he believes Solana is very different from other protocols in terms of technology, scalability and future potential. He said:

“Solana is a differentiated technology, there’s a lot of noise in the space about how things will scale in the future, but Solana is ready today and has a very clear path to very arbitrary scaling in the future in a very user-friendly way.”

He also explained why Solana is one of the top protocols that Web3 gamers prefer. “Gamers have very high performance requirements for their applications,” Sorg added, adding that Solana stands out for them by having the best transaction confirmation times.

Solana crashes

When Akiba asked why Solana was falling apart so much, Sorg explained why by giving two reasons.

First of all, according to Sorg, Solana has no major marketing problems. He stated:

“We are not traders. We call certain things outages, while other circuits would call them congestion.”

He further explained that Solana still facilitates several hundred transactions per second during downtime. Sorg said that’s still far more than what many chains facilitate in their best states. Still, such a situation would be identified as congestion by other chains’ standards, “but by Solana’s standards,” Sorg said, “it’s an outage.”

Second, Sorg mentioned that the outages are a result of its decentralized infrastructure. Although occasionally “different systems can’t agree on what the next block should be,” Sorg said, “they stop because they can’t distribute blocks.”

The Future of Blockchain and Solana

When discussing the possibility of a multichain future, Sorg talked about the importance of consolidation and shared security. He said:

“We will have different technologies that will optimize in different ways. I think there will be some consolidation where different chains and different protocols will learn from other protocols,”

That being said, Sorg also acknowledged that bridge security weaknesses need to be addressed. He described the problem as a “difficult problem”. It’s all about having different networks and relying on one chain to connect them, which can be solved by proper “chain-level consensus and agreement”.

Regarding Solana’s position in this multichain future, Sorg said it will be “even more configurable over time.” He further added:

β€œIt’s hard to realize how much innovation is happening inside Solana from the outside. Today, the Solana protocol is much more stable than it was in January of this year. A random move will be seen in 12-18 months as demand increases, more configuration options come out.”

Solana and the collapse of FTX

The Solana (SOL) token was one of the main ones affected by the FTX crash. A few days after the stock began to struggle, SOL fell 67.7%, falling from $38.49 to $12.40. It is trading at $13.70 at the time of writing.

SOLUSD
SOLUSD

The fallout is a result of Solana’s ties to FTX. The venture capital side of FTX had several projects based on Solana, which led investors to perceive the protocol as part of FTX.

However, the Solana Foundation responded to community concerns about congestion by saying they have minimal exposure to FTX. In a blog post published Nov. 14, the foundation revealed that it held certain assets worth about $190 million before the stock market crashed, but that their value had fallen below $35 million since the crash.

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