JAN 15, 2024
Solana Permissioned Environments
by 3hVa..8MBw, AgbYu4HmVmhHdzYDVCwnwiVXpaVmVteMTFiejn3YCaKU
Solana's solution for enterprise blockchain use cases
If you have been following the crypto/web3 market you would know that Solana was one of the hardest hit ecosystems by the FTX collapse. Yet, the Solana blockchain was built on sound architectural principles, had a strong culture and a rallying community.
That helped the Solana ecosystem recover from the abyss in some style.
Solana is arguably the fastest Blockchain to perform real world transactions. The chain does ~2500 TPS (Transactions per second) on a normal day - and can scale upto 65,000 TPS. There are a few enhancements arriving that would make the chain faster. But, what does that have to do with institutions and real world use cases?
Solana have recently launched Solana Permissioned Environments (SPE) for institutions looking to tap the technology in a regulated setup. Institutions can get the superfast and 'low transaction fee', Solana blockchain without being exposed to the wild wild west!
In this episode, Nick elaborates on the benefits of the SPE in some detail. Here is his take on the SPE.
Permissioned blockchains, like Solana's Permission Environment (SPE), contrast with their public counterparts, implementing access control mechanisms. These private networks require explicit approval for nodes to partake in the network, perform transactions or access data. In contrast, public blockchains, such as Solana's mainnet, offer open access for any participant to read, write, or engage with the ledger.
Solana's Permission Environment tailors a private Solana virtual machine environment to cater to enterprise requisites like scalability, compliance, and connectivity. This optimised setting aligns with regulated and sensitive applications, particularly in sectors like financial markets and payments, where strict security and permissioning are pivotal.
Setting up an SPE is hassle-free, deployable across cloud platforms like AWS, GCP, Azure, or on-premise infrastructure. Pyth Network serves as a prime example of an SPE, providing Oracle services connecting Solana's blockchain to external data sources. This crucial linkage ensures reliable and secure data for smart contract execution, leveraging Solana's rapid data processing and minimal latency.
SPE's distinctiveness is that it grants enterprises more customization, control, and scalability while remaining at arm’s length from the Solana's ecosystem. Enterprises opt for permissioned environments primarily for compliance reasons, seeking greater control over validators, gas usage, and other customizable aspects.
Despite alternatives like Corda, Hyperledger and Polygon Subnets, SPEs capitalise on Solana's innovative mainnet features. These features include enhancements like token extensions, confidential transfers, interest-bearing tokens, and non-transferable tokens, providing a robust foundation for diverse use cases.
Rooted in Solana's foundational ethos of creating a public, permissionless blockchain capable of Nasdaq-level speeds, the foundation's strides toward becoming the central on-chain hub for global finance.