New Solana Node For Home Verification, First Real-Time Solana Game & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• Home Verification: Mithril verifies Solana with lower hardware requirements.

• On-Chain Acceleration: MagicBlock showcases first real-time on-chain game.

• SVM Chains: Explore all the projects that are building dedicated SVM chains.

If you're unable to read the entire newsletter this week, here’s the only thing you need to take away ⬇️

We’re getting closer to regulatory clarity, time to double down and build.

Now, let’s jump right into this week’s newsletter!

Click on any underlined heading/hyperlink to learn more.

Spotlight

Texas trade 'em

With the introduction of the Texas Stock Exchange (TXSE), backed by BlackRock and Citadel Securities, it seems as if traditional finance is taking a leaf out of our crypto book.

According to Defillama, more than 400 decentralised exchanges are currently operational.

Do we need all of these?

No.

But having more than a handful of decentralised exchanges is beneficial to the entire ecosystem.

Here's why:

• Increased competition among exchanges leads to better services and lower trading costs for traders and investors, as competing platforms strive to offer more attractive fee structures.

• Additionally, more venues generate greater market liquidity. Higher liquidity generally leads to tighter bid-ask spreads, further reducing transaction costs.

• Moreover, the presence of multiple players encourages continuous technological advancements, as each exchange invests in state-of-the-art trading platforms, data analytics, and security measures to remain competitive.

• On top of that, emerging assets might find it easier to list on smaller or specialised exchanges, where the listing requirements are more flexible compared to larger exchanges. 

• In addition, having multiple exchanges can help mitigate systemic risk. If one exchange faces technical difficulties or market disruptions, others can continue to operate. This resilience is crucial for the overall stability of the market.

The 400+ decentralised exchanges make clear that we in crypto understand the importance of a large and diversified platform pool.

The top 3 decentralised exchanges — Uniswap, PancakeSwap, and Raydium — make up ~50% of the overall on-chain trading volume and run on 2 different networks: Ethereum and Solana. Similarly, the NYSE, Nasdaq, and Cboe make up ~ 50% of the total U.S. equity market volume and are located in both New York and Chicago.

Having said that, decentralised exchanges outside of the top 3 still hold a significant percentage of the overall trading volume: Phoenix = 5%, Orca = 5%, and Curve = 4% — now that’s what we call antifragile. In traditional finance, however, the NYSE, Nasdaq, Cboe, and Trade Reporting Facilities (TRFs) make up 95% of the total U.S. equity market volume — now that’s what we call a cabal. Smaller and newer trading venues haven't been able to put a significant dent in this dominance whatsoever. Here’s an example: MEMX, which is also backed by BlackRock and Citadel Securities, only registers 1.93% of the total U.S. equity market volume.

So granted, the Texas Stock Exchange faces an uphill battle in challenging the predominance of the NYSE, Nasdaq, Cboe, and TRFs — but if crypto has shown anything, it’s that a more diverse liquidity landscape can be advantageous. That is, if the TXSE really wants to change the status quo and not only introduce new listing standards and an income stream from its market data.

I'm rooting for the TXSE, but I won't be disappointed if it isn’t a smashing success; it will just highlight once again that crypto and DeFi are the true trailblazers, not traditional finance.

As they say in Texas: If I say a hen dips snuff, you can look under her wing for the can.

Chart Of The Week

News Bites

Home Verification: According to crypto 𝕏, one of Ethereum’s biggest moats is the ability to verify the network — even from home — using cheap hardware. With Mithril from Overclock, however, things are about to change. The goal of Mithril is simple: Build a light, protective, radiant full node client that can verify Solana with lower hardware requirements, thus furthering the decentralisation of the network.

SVM Chains: Last week we talked about IRON, an on-chain bank run on a permissioned SVM chain. This is by far not the only SVM chain which is currently being built, so make sure to bookmark this post to keep tabs on all the other projects in the pipeline.

On-Chain Games: Speaking of SVM chains, Sonic has raised $12 million in a Series A funding round to propel its vision of fast on-chain game experiences forward. By doing so, Sonic aims to further extend player-owned economies — similar to Eclipse, Ronin, and Redstone.

On-Chain Acceleration: Sonic is not the only game in town 😏. Just recently, MagicBlock showcased the first real-time on-chain game — all without the need for rollups. If you want to take advantage of 50ms latency, elastic TPS, and full state/composability, make sure to reach out to MagicBlock here.

Incubating Impact: If you'd like to catch a glimpse of what Solana Incubator teams such as ​Sanctum, Shaga, and ​Espresso have been working on, make sure to register for Demo Day here.

Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

If you'd like to reach me, respond to this newsletter or reach out to me on 𝕏.

Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}