Due to the recent explosion of the SOL ecosystem, SOL itself has also skyrocketed, from a low of around 7-8 to the current 70, which is a 10-fold increase. It can be seen that SOL is still very tenacious. After the automatic FTX collapsed due to thunder, This year has seen a new market trend, and the public chain level is very eye-catching. After all, it has increased 10 times, including the ecology of its chain, which has also increased rapidly. For example, the JITO mentioned a few days ago, the meme project bonk is very popular. fierce.

Today we continue to talk about a track with great potential in SOL, which is SOL-EVM, which is the NEON-EVM project. You must know that almost all public chains are currently working on projects that are compatible with EVM, such as what was mentioned some time ago. Aurora is EVM on Near, C-Chain is on Avalanche, Moonbeam is on Polkadot, and Evmos is on Cosmos. Therefore, all major public chains are currently coveting the huge ecology of Ethereum, and they are all working on EVM compatibility, so SOL should also do it. After all, SOL is the brightest among the fastest public chain projects at present, and the bull market on the wave has risen. More than 200 times, the peak TVL reached 10 billion US dollars, which is quite impressive. So we have to pay attention to this SOL EVM project after all. At present, its market value is relatively low, only more than 30 million.​

Introduction

NEON token is the native token of Neon EVM.

Neon is an EVM compatibility solution on the Solana ecosystem, bringing Ethereum compatibility to the Solana blockchain. Neon EVM provides a low-friction solution that enables dApp developers to use Ethereum tools to expand and obtain liquidity on Solana. .​

1. Reasons why Neon chose Solana

Solana uses a proof-of-stake consensus mechanism, and its system is enhanced by a proof-of-history protocol, a transaction parallelization technology that optimizes resources and ensures Solana can scale evenly across GPU and SSD levels, as well as an optimized memory pool system, which speeds up throughput.

2. Advantages of Neon EVM

Provide lower qas fees and higher transaction throughput

Support cross-chain communication:

Allowing Ethereum developers to build on the Solana blockchain

Neon EVM is a cross-chain solution that allows dApp developers to use the advantages of Solana to expand their services, offer new products such as bundles or high-frequency trading, expand the user base, and keep costs as low as possible, including gas fees. Neon EVM is fully compatible with Ethereum on Solana.

Operating principle

How Neon EVM works

The Neon EVM architecture can be summarized into three main components:

EVM itself - it is a complete EVM emulation on the Solana blockchain.

Web3 Proxy - It is a tool that packages Neon transactions into Solana transactions

EVM Governance - It is a complete governance system for managing Neon EVM resources.

Neon EVM also has a key technical feature that allows developers to leverage the superior performance and high throughput of the Solana blockchain to provide support for Berkeley PacketFilter (BPF) bytecode compilation.

What is Berkeley Packet Filter (BPF)? In 1992, BPF was developed as a special purpose operating system, first used to filter packets, but now it has become an important part of the pnux kernel. Solana supports BPF bytecode Compilation of:

In particular, BPF integration allows:

Other virtual machines are loaded into the Solana blockchain

Parallel Execution of Transactions Solana Blockchain Virtual Machine Easily Performs Updates: Neon EVM can easily perform updates even after Solana hard fork In short, Neon EVM can support Neon transactions being executed as local entities on the Solana blockchain implement. In this case, we can take advantage of the outstanding performance innovations on the Solana blockchain to process Ethereum transactions, including parallel execution of transactions, which has always been the biggest bottleneck affecting Ethereum’s scalability.

The Neon team believes that Neon can retain the advantages of both Ethereum and Solana.

The advantages from Ethereum are: you can use Solidity or Vyper languages ​​that are more familiar to developers; you can use infrastructure such as MetaMask, Hardhat, Remix, etc.; the compatibility of Ethereum RPC API; support for Ethereum accounts, signatures, token standards, etc. wait

The advantages from Sol are high concurrent execution capabilities; gas fees for each transfer to 0.000015SOL; up to 5000 tps, etc.​

An overview of how the Neon EVM mediates communication between Ethereum dApps and Solana.

Neon EVM transaction life cycle

Initiating a user transaction (tx) from an Ethereum dApp on Solana requires three main steps:

The user initiates a transaction. A transaction is a signed Ethereum-like transaction pointing to a Neon RPC endpoint.

See how to connect to Neon RPC with an Ethereum-compatible wallet.

The Ethereum API passes transactions to the Neon agent through the Neon API service.

This request is received by the Neon proxy.

2.1 Neon agent handles requests and provides:

- Gas usage estimation for transaction execution

- Broadcast startup: wrap Ethereum-like transactions into Solana transactions

2.2 The Neon agent passes the wrapped transactions to the Neon EVM program hosted on Solana. This leads to the following results:

- A Solana receipt

- A corresponding Neon EVM receipt

2.3 Then Neon smart contract:

- Unpack the transaction and check the user's signature

- Load EVM state from Solana storage, including account data and smart contract code

- Execute transactions in Solana BPF

- Update Solana's status to reflect new Neon EVM status

- Solana and Neon EVM for state changes.

Financing situation

Neon Labs completed $40 million in financing led by Jump Capital, with participation from Three Arrows Capital, Solana Capital, IDEO CoLab Ventures and others. The project stated that the investment funds will be used in areas such as research, development, marketing and business development, as well as to expand the scale of the Neon Labs team. Then, on November 11, the German blockchain incubation company Advanced Blockchain AG announced that it had invested in Neon Labs through its subsidiary.

Neon launched its token sale on CoinList (currently the star cradle of the primary market in the currency circle, with many good projects such as: Filecoin, DFINITY, Algorand, Nervos, Flow, etc.) on June 9th, and the registration deadline is At 20:00 on June 5, Beijing time, this token sale will release 50 million NEON, with a sales price of $0.1. The token sale raised US$5 million.

Token economy

The current total number of tokens is 1,000,000,000, 90,000,000 are in circulation, and the circulation rate is 9%. The current currency price is US$0.48. If FDV is included, it should be US$480 million. The current TVL is only 400,000 US dollars on the chain, and it may have just begun. There is currently no information on token distribution, and the project currently only has gate and hot coins online, and the mainstream exchanges have not yet launched.​

Benchmark other projects

1. Aurora: It is NEAR's EVM, with a current market value of US$124 million, a current currency price of US$0.31, a total token supply of 1 billion, and FDV of US$300 million.

2. Moonbeam: Gmlr is Polkadot's EVM, with a current market value of US$270 million, a current currency price of US$0.33, a total token supply of 1.09 billion, and FDV of approximately US$360 million.

3.EVMOS: It is ATOM's EVM. The current market value is 67 million US dollars, the current currency price is 0.11 US dollars, the total number of tokens is 1 billion, and the FDV is 100 million US dollars.

Judging from the current benchmarking of these projects, the data are actually similar. Currently, NEON's FDV is the highest, so it is a bit high.

To sum up, at present, all major non-EVM public chains are actively competing for the Ethereum ecosystem and want to transplant the Ethereum ecosystem to their own chains. Therefore, if you provide an EVM-compatible environment, others will be able to migrate over. very convenient. It will greatly increase the application and ecology of its own public chain. It is beneficial to a public chain without any harm. The same is true for its respective applications. I definitely want to make my application Expand the scope of application, so currently such top public chains have begun to deploy their own EVM. For the EVM of these public chains in the bull market, it should be a massive increase. Look at the current TVL on Ethereum of 26 billion U.S. dollars. During the bull market, it was 100 billion U.S. dollars. So even if 10% of the applications can be transferred to their own chain There are also 10 billion US dollars on it, which is probably more than the TVL of the entire chain. So how much can this project see? At present, there is definitely no problem with 1 billion to 2 billion US dollars. That is, even if it is currently 0.5 US dollars, there is still room for 4 times. Of course, the current price of this project is a bit high (currently It has increased 10 times from the low point to now), but its current value point is on the SOL chain, which is much higher than the value of dot, atom, and near.