Demex Daily #130: Solana Boosts Speed with 'Timely Vote Credits

What’s Interesting Today:

The Solana community has passed a proposal for "Timely Vote Credits" (TVC) aimed at speeding up transaction processing by rewarding validators for quicker transaction confirmations. This measure, approved by 98.4% of voters, is designed to address delays caused by validators gaming the system for extra credits by waiting to see which fork would prevail before voting. This strategy has resulted in slower block confirmations and transaction speeds. The TVC system will allocate more credits for faster votes to incentivize promptness, which could help reduce network congestion. Solana has faced significant congestion issues recently, with a notable percentage of non-vote transactions failing due to bot activity. The introduction of TVC follows a period of testing and community discussion, and while a quick fix for current congestion is deemed "impossible" by Solana Labs founder Anatoly Yakovenko, it's a step toward resolving these challenges through engineering solutions.

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Layer N, an emerging execution layer for Layer 2 networks, has initiated the first phase of its testnet, featuring NordVM—an application-specific rollup optimized for asset exchanges. During its closed testnet trials, Layer N achieved a sustained throughput of 20,000 transactions per second (TPS) and peaked at 120,018 TPS. NordVM is designed to handle tens of thousands of orders per second, offering features such as scalable orderbooks and support for cross-margin and cross-collateral accounts across numerous markets and assets, aiming to provide a user experience comparable to centralized exchanges. Announced following a $5 million funding round led by Founder’s Fund in September 2023, Layer N aspires to host a unified ecosystem of rollups with shared liquidity and cross-chain communication, simplifying the user experience. Additionally, Layer N promises significant performance improvements over existing decentralized exchanges, with all trades settled on-chain. The project also plans to introduce full composability and liquidity sharing with third-party Layer 2 rollups, including Ethereum Virtual Machine (EVM) compatible networks, through its forthcoming N-EVM implementation. Layer N utilizes EigenLayer’s EigenDA for data availability, supporting its high transaction throughput capabilities.