Nitro, the first Layer 2 scalability solution for Solana, has recently announced that it is out of cover. Nitro is creating a Layer 2 for Solana that integrates the robust Cosmos and IBC ecosystem with Solana's potential execution environment and quickly growing developer community. The crossing point connecting Solana and Cosmos would be Nitro.
Most of Layer 1s -Polygon, BNB Chain and Avalanche included- have adopted the EVM standard the past few years, which made Solidity and EVM a development standard on the crypto ecosystem. What is Nitro starting to do? Developing the Solana VM (SVM), a fundamental development standard similar to the EVM.
More About Solana Layer 2
Since Nitro will support the Solana Virtual Machine (SVM), developers can quickly deploy existing Solana dApps on Cosmos and have access to the larger IBC ecosystem. Applications created with Nitro may make use of the SVM's excellent performance while getting IBC's inherent compatibility.
Solana has built a fantastic developer community with a large worldwide following over the past few years. Solana Layer 2 developers have access to a pile of tools and data in order to learn how to create smart contracts, including Metaplex, Anchor framework and Solana Tool Suite.
Developers may utilize Nitro to deploy pre-existing Solana smart contracts without making any modifications, and customers can use Phantom and other popular Solana wallets to easily access these apps. Nitro is a fully-featured framework for Solana Layer 2 producers wishing to enter the Cosmos and IBC industries, and it was developed by collaborators at Sei Labs.
Chains that are EVM-compatible have grown rapidly with Solidity and EVM in the crypto sector. In parallel, Solana has had a significant influx of developers. The only way for Solana developers to have access to the fast-expanding Cosmos ecosystem and make it simple to transfer assets back to Solana Layer 2 is through Nitro, the only SVM-compatible scaling solution.
"Nitro acts as the connection point among both Solana and Cosmos, bringing together the world-class developer community of Solana with the rapidly growing Cosmos ecosystem”. According to Kevin Lim, Lead of Nitro, Solana applications and users now have access to the Cosmos market. "The Nitro objective is to combine the robust Solana application infrastructure with the cooperative Cosmos and IBC mission."
What is Nitro?
The whole first Layer 2 scalability option for Solana is Nitro. Nitro, which was created for the Cosmos environment, acts as a bridge between both Solana and Cosmos. Because Nitro is Solana Virtual Machine (SVM) compatible, programmers may reach a larger Cosmos user base and broaden the scope of their apps. Making SVM a developmental standard in cryptography, similar to the EVM, begins with Nitro. Applications created using Nitro may take advantage of the Solana VM (SVM) for great performance while enjoying IBC's native compatibility.
Sei is the initial Layer 1 trade blockchain created with the intention of providing exchanges with an unfair edge. Most Layer 1s belong to one of two categories: app-specific and general-purpose chains (Ethereum, Solana) (dYdX, Osmosis). Between the two, Sei opens up a completely new design area that is use case-specific rather than general-purpose or app-specific. Due to the incorporation of an order perfectly matched engine, frontrunning prevention, and the fastest chain finality, Sei is able to develop the best layer 1 for financial apps (600 ms). Sei has 50+ teams from Polkadot, Solana, NEAR and Terra working ahead of mainnet and is backed by Coinbase, Hudson River, Multicoin, Delphi, GSR, Flow Traders, and angels from Frax, LayerZero and Anchorage.
What is the segment's future?
Sei is competing against well-known rivals like Aptos, Arbitrum, and Starkware by bringing over 40 framework teams on their blockchain.
Last month, Multicoin Capital led a $5 million investment round that the business concluded. Participants included Delphi Digital, Hudson River Trading, GSR, Hypersphere, Flow Traders, and Kronos Research, as well as the venture arm of Coinbase. A spokeswoman for Sei declined to provide the valuation.
As the network gets closer to the mainnet, the money infusion is intended to fund it.
A genuinely multichain future envisioned by companies like LayerZero and Wormhole compels Feng to think critically and objectively about the best layer-1 to build a top.
"We don't believe that any of these will go away," he added. "Layer-1s all have distinct functions. Ethereum's approach one, bring all was our starting point, but as the industry develops, you'll notice more specialized infrastructure”.
Therefore, transaction prices for roll-ups today typically range between $0.25 and $0.10, while in the future, with all of the efficiency gains I mentioned, transaction fees for roll-ups will be lower. The transaction costs might be as low as $0.02 or even $0.05. During Korea Blockchain Week, Ethereum co-founder Vitalik Buterin described the technology as "so much cheaper, far more inexpensive, and a complete game changer" (KBW).
In a statement, he added, "It's a concept that I think has been somewhat forgotten, and I believe one of the reasons why it's been forgotten is essential because it got eliminated from the market."
Links of Interest for Developers
How to Get Started With Cosmos SDK?
SOLANA Network and its Mechanism
Why is Solana a Good Investment Choice for Developers?
Getting Started with Solana Development
Nitro will boost DeFi efficiency on a blockchain designed specifically for DeFi. Some of the main characteristics of the approach are producing results (20k tps) and sub-second finality (600ms). By leveraging Nitro, Sei Labs, a layer-1 blockchain firm created by former Robinhood and Goldman Sachs employees, would enable Solana developers to move their apps to a new environment for digital assets. According to Jeff Feng, a co-founder of Sei, no one has ever done something like that.
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