Detailed explanation of Neon: Recommended by the founder of Solana, committed to introducing EVM into the Solana ecosystem

2023-12-12 20:00

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Neon is the Ethereum virtual machine on Solana, compatible with EVM, allowing developers to use Ethereum tools to build and deploy decentralized applications (dApp) on Solana.

Original Title: "Interpreting Neon: Recommended by Solana Founder, Committed to Introducing EVM into Solana Ecosystem"

Original Author: XU, TechFlow of Deep Tide

Original Editor: David

On December 12th, the Paradigm CTO shared their perspective at X, stating that "2024 will be the year of parallel EVM, supporting all those dedicated to solving this issue, including Monad/Sei/Polygon and other teams that I have forgotten."

Regarding this, Solana co-founder Anatoly Yakovenko immediately commented: @Neon_EVM is already a parallel EVM, which is basically the design you want.

What is Neon and why did the co-founder of Solana endorse it?

Project Introduction

(1) Basic Information

A summary in one sentence: Neon is an Ethereum Virtual Machine on Solana, compatible with EVM, allowing developers to use Ethereum tools to build and deploy decentralized applications (dApps) on Solana.

This is the first time Solana has integrated with the EVM ecosystem, which means its users and developers can leverage the rich ecosystem of Ethereum and build on top of Solana.

Official website screenshot

Project official website: https://neonevm.org/

Official Twitter: https://twitter.com/Neon_EVM

(2) Financing Situation

On November 9th, 2021, Neon announced that it has received a $40 million investment from Jump Capital, Three Arrows Capital, and other institutions with a valuation of $250 million.

On June 9th, 2023, Neon will launch its public offering on the Conlist platform, selling 50,000,000 NEON tokens, which represents 5% of the total circulating supply, at a price of $0.1 per token. The total amount raised will be $5 million.

(3) Project Team

Marina Guryeva, CEO of Neon, previously served as a director at cyberFund.

Konstantin Goldstein, the Chief Operating Officer of Neon, was formerly the Chief Technology Evangelist at Microsoft.

Andrew Falaleev, served as the Chief Technology Officer of Neon and was also the former Chief Technology Officer of GolosChain Core.

EVM is good, but not compatible with Solana

The Ethereum Virtual Machine (EVM) is a core component of the Ethereum network, providing an execution environment for all smart contracts on Ethereum.

Ethereum Virtual Machine Diagram

Although EVM is widely used in the world of blockchain, it also has its limitations. Due to the need for smart contracts to be executed in order, this limits processing speed and efficiency. For example, Ethereum's transaction throughput is typically limited to about 1,500 transactions per second, which can lead to network congestion and high transaction fees in high-demand situations.

Compared to traditional blockchains like Ethereum, Solana achieves higher efficiency and throughput through its unique architecture design. Its Sealevel feature supports parallel processing of smart contracts, greatly improving processing speed, ideally reaching over 50,000 transactions per second.

Although Solana has higher efficiency and throughput, it is not compatible with the Ethereum ecosystem, which makes it difficult for the Solana ecosystem to inherit the characteristics of EVM and attract EVM developers.

Meanwhile, Neon is introducing the EVM to Solana, providing more possibilities for the Solana ecosystem.

Neon: Introducing EVM to the Solana Ecosystem

Neon EVM is an innovative on-chain solution that brings the functionality of the native Ethereum Virtual Machine (EVM) to the Solana network. In this way, Neon EVM successfully combines the widespread compatibility and popularity of Ethereum with the efficiency and low cost of Solana, providing developers and users with more choices and flexibility.

To further elaborate, Neon EVM makes it possible to run any Ethereum native application on Solana without making any changes to its codebase, while encompassing all standard Ethereum tools.

And this means that through Neon EVM, developers can easily migrate Ethereum programs seamlessly to Solana. The appeal of this approach is that popular Dapps like Uniswap and Curve can be built on Solana at a lower cost. Therefore, developers have the opportunity to expand their user base, reach new users on Solana, and benefit from Solana's powerful liquidity.