Neon EVM is a groundbreaking solution that brings the Ethereum Virtual Machine (EVM) to the Solana blockchain. This integration enables developers to scale Ethereum dApps by leveraging Solana as the settlement layer.Â
Let's dive into the details of how Neon Works.
Introducing Neon EVM and Its Problem-Solving Capabilities
The Neon EVM protocol tackles two significant challenges faced by Ethereum dApps: transactional limitations and ecosystem access hurdles.
Problem 1: Transactional Challenges
Ethereum's current protocol imposes limitations on throughput, with a maximum recorded value of 58 transactions per second (TPS) at the time of writing. In contrast, Solana has demonstrated its ability to support massive scaling of decentralized applications, achieving a maximum throughput of 5,184 TPS on Mainnet.
Solana accomplishes this through transaction parallelization technology that optimizes resources, ensuring horizontal scalability across CPUs and SSDs, along with an optimized mempool system that accelerates throughput.
Neon EVM leverages these innovations, providing an Ethereum-native solution that overcomes low throughput and high gas fees, making Ethereum viable for a wider range of dApps.
Problem 2: Ecosystem Access Challenges
The Ethereum and Solana blockchains possess different designs and structures, creating a barrier for Ethereum dApp developers seeking to benefit from Solana's transactional advancements.
Previously, developers had to create customized versions of their dApps to access other Layer 1 (L1) ecosystems, much like how mobile app developers had to develop separate versions for Android and iOS.
Since many Ethereum dApp builders are well-versed in the Solidity programming language and Ethereum-native tooling, adapting their dApps to comply with Solana's technical and transactional requirements posed a challenge.
Neon EVM addresses this issue by providing a robust cross-L1 blockchain development solution, enabling developers to migrate their Ethereum dApps to Solana with minimal codebase reconfiguration, thus expanding Solana's user base.
Use Cases of Neon EVM
As the benefits of low transaction costs and fast settlement speeds become evident to the developer community, Additionally, successful Ethereum dApps may want to gauge the response of the Solana community to their value propositions.
Notably, popular dApps like #Uniswap , #Aave , Curve, Saddle Finance, and others have already been successfully deployed on Neon EVM's devnet with minimal codebase modifications.
Furthermore, Neon EVM has partnered with various innovators across the spectrum, preparing to launch several active decentralized exchanges (DEXs) such as Moraswap, Sobal, Onomy, Powerpool, and numerous DeFi services like LeverFi, Midas Capital, Yin Finance, Poolz, DxSale, Elk Finance, and GhostNFT with their NFT collection.
The Utility of NEON Token (NEON)
 the utility token of Neon EVM operates on a fee-based system. It serves two primary functions:
Payment of Fees: NEON tokens are used to pay transaction execution fees to the Neon EVM Operator.
Governance: NEON token holders can participate in the Neon DAO governance activities, influencing the decision-making process.
Getting Started with Neon EVM.
Neon EVM is already deployed as a closed beta on the Solana Mainnet. To learn more about using Neon EVM, refer to the documentation available on the Neon Foundation's website. For a comprehensive overview of Neon EVM's technical architecture and features, you can access the whitepaper at the NeonEVM website as well.
To execute Neon transactions, users must pay the Operator in NEON tokens.
The NEON token can be transferred to Neon EVM using NeonPass, which is available both as a UI tool and programmatically through the NeonPass npm package.
Neon EVM asserts that both Ethereum and Solana ecosystems will continue to thrive, as they possess unique strengths and can complement each other.
Neon EVM provides a third path, offering a balance that bridges any divisions emerging within the Ethereum community. Ethereum stands to gain from accessing the vibrant and rapidly growing Solana community, while Solana benefits from Ethereum's large and experienced community.
The synergy created by Neon EVM brings together the high throughput, low gas fees, and thriving ecosystem of Solana with Ethereum's established user base.
The Governance Model of Neon EVM is based on Neon DAO, operating as a decentralized governance layer, and collaborates closely with the Neon Foundation to drive the development, growth, and adoption of Neon EVM and its ecosystem.
Neon DAO utilizes an SPL governance program, deploying contracts on Solana and receiving fees for its services.
Through a web interface, NEON token holders can raise proposals, vote on them, and impact the direction of Neon EVM.
The Neon DAO's responsibilities include
setting up Neon EVM parameters.
 agreeing on redesigns and updates to the Neon EVM Program.
making informed decisions about its development.
Neon EVM emerges as a promising solution, connecting Ethereum and Solana while addressing critical challenges faced by Ethereum dApps, With its ability to scale transactions, provide seamless access to Solana, and empower developers with an efficient cross-L1 solution.
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