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Solana L2s And Appchains, New Zero Knowledge Standard On Solana & More

Also: Nubank, backed by Warren Buffett, rolls out Solana deposits & withdrawals.

Welcome back!

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

  • Scaling Experiments: Explore L2s and appchains on Solana.

  • Solana ZK: Bonsol introduces verifiable compute (ZK proofs).

  • Buffett's Touch: Nubank to support Solana deposits and withdrawals.

Blockchains are increasingly becoming more relevant for the payments ecosystem.

So, who’s leading the charge?

Here’s a hint ⬇️

The second order effects look quite compelling as well 😏

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

Click on any underlined heading/hyperlink to learn more.


Divide And Conquer

Innovations such as blockchain and crypto often develop at a pace that outstrips the ability of regulatory frameworks to adapt. 

Consequently, all things blockchain and crypto typically take place in an environment that lacks clear regulatory guidance. 

In and of itself, this is normal and to be expected.

Regulators typically move cautiously, needing time to understand new technologies, their implications, and potential risks before enacting appropriate regulations.

Having said that, the decentralised and global nature of blockchains make them inherently resistant to traditional forms of regulation, which are usually bound by national borders.

This has posed significant challenges for regulators trying to oversee a technology that operates across jurisdictions without central oversight.

While regulation is crucial for protecting consumers and ensuring market stability, it can also act as a brake on innovation.

Just wrap your mind around last week's headlines ⬇️

It will come as no news to you that regulatory uncertainty in both the US and EU is increasingly leading to a crypto brain drain, potentially slowing the pace of innovation and adoption in these regions.

It doesn't have to be this way.

The key challenge for regulators is to develop frameworks that protect stakeholders, all while not stifling innovation. 

Some countries, recognising the potential of blockchains and crypto, have started to create more tailored regulatory environments that aim to both foster innovation and address the associated risks. 

For instance, regulatory sandboxes have been established in places such as the UAE, Singapore, and Taiwan, allowing crypto startups to test new products and services in a controlled environment with regulatory oversight.

In spite of that, we all know that the US and EU are vital for crypto’s long-term viability as well.

Thus, we need to rise up against the SEC's and European Parliament/Council’s divide and conquer strategy.

The best way forward?

A unified platform that gathers all the cases lobbied against crypto.

Without this discoverability and transparency, government agencies will always be able to muddy the water and covertly impose unjust rulings.

Also, a lack of discoverability and transparency will not allow us to generate a community wide buy-in and willingness to collectively fight the overreach of these government agencies.

If such an initiative already exists, please ping me here. And if you're working on something similar, please let me know as well!

No matter how brilliant your mind or strategy, if you’re playing a solo game, you’ll always lose out to a team.

Reid Hoffman

Number Of The Week

News Bites

L2s & Appchains: While L2 blockchains are designed to operate multiple applications, appchains are exclusively designed to operate one specific application. And guess what? Solana already features both — here's an overview

Solana ZK: “Zero knowledge” has been floating around as a buzzword for quite a while. But what about concrete examples? Enter Bonsol, open source verifiable compute for Solana. Essentially, verifiable compute proves computations without revealing inputs, similar to ZK proofs.

Stripe 💜 Crypto: You've heard the news, Stripe will soon let merchants accept USDC payments on Solana. As such, transactions will instantly settle on-chain and automatically convert to fiat. This is not Stripe's first crypto rodeo, however, this second attempt benefits from improved transaction speeds and costs, as well as an accelerated stablecoin adoption. If you'd like to get a richer context on the matter, make sure to read Dirichlet's thread here.

Buffett's Touch: Nubank, a South American fintech platform that is backed by Warren Buffett, has announced support for deposits and withdrawals of cryptocurrencies such as Bitcoin and Solana for its ~70 million customers.

NFT Dominance: With 1.3 million annual users and a market share of 33%, Solana has surpassed both Bitcoin and Ethereum to become the most used NFT blockchain.

SVM > EVM: You're an Ethereum developer who would like to learn more about Solana and topics such as Solidity vs. Rust smart contracts? This new in-depth blog post got you covered.

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!

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.