It has been some time since I began writing this article, and during that period, the cryptocurrency landscape has undergone significant change. Most notably, the FTX collapse, which occurred over a year ago but still feels like yesterday, has had a major impact on the industry. Time is fleeting, especially in the cryptocurrency market.

Given the recent developments in the cryptocurrency industry, I now feel confident in providing a fair assessment of Solana's current state. First, I would like to clarify that I am not an Ethereum maximalist. Although I am biased towards Ethereum, I strive to remain objective in my analysis of other ecosystems and protocols. I have previously critiqued Ethereum, as well as Bitcoin, which was a topic of passionate interest in the past. I would be lying if I asserted that I do not have a soft spot for any particular cryptocurrency ecosystem or protocol, or that I do not pledge allegiance to any of them. However, I do have a soft spot for Ethereum, and I believe that everyone else does as well, even if they have not yet realized it or are afraid to admit it. I enjoy trading shitcoins, regardless of the underlying ecosystem. Fun fact: In early 2021, I traded Solana from $20 to $100. Although I have always had a foot in Solana, the majority of my attention has been focused on Ethereum. Cosmos is another ecosystem that I closely monitor. Solana and Cosmos are the two primary ecosystems that interest me outside of Ethereum and Bitcoin.

Now, returning to the question at hand: Is Solana dead?

Not yet.

However, it is on thin ice.

To determine whether Solana is dead, we must first understand what it means for a blockchain to be classified as such. Some people refer to dead blockchains as "ghost chains." There is no universally accepted definition of a dead/ghost chain, but the following interpretation is widely accepted

A dead chain, also known as an inactive or ghost chain, is a blockchain network that has low or no activity or usage. It may have a functioning blockchain, but there are few to no transactions being processed, few to no new applications being built, and few to no users interacting with the network.

There are many reasons why a chain may become inactive. Some of the most common reasons include:

● Technical problems: Some chains may have technical problems that make them difficult or impossible to use. For example, a chain may have scalability issues, security flaws, or bugs.

● Lack of funding: Some chains may not have enough funding to support development and marketing. As a result, they may lose users and developers to other platforms.

● Competition: Some chains may face stiff competition from other platforms that are more popular or offer better features. As a result, they may lose users and developers to these other platforms.

Solana, a popular blockchain platform, has had technical problems in the past. However, it is well-funded and has a large and active community. It is facing competition from other platforms, but it remains to be seen whether this will be enough to kill the chain.

The framework I am about to propose is not definitive, nor is it a law. It is simply my opinion on how to assess whether a blockchain is dead. I will consider three categories:

Technology Development: This category evaluates the technical progress of the blockchain, including the development of its protocol, infrastructure, and applications.
Ecosystem Analysis: This category evaluates the health and vibrancy of the blockchain's ecosystem, including the number and quality of its developers, users, and projects.
On-chain Comparison: This category compares the blockchain's on-chain metrics to those of other blockchains, such as transaction volume, TVL, Fees and Revenue.

A blockchain will need to have three "Nays" to be considered dead.

Technology Development

In this section of my essay, I will explore the recent technological upgrades and developments that Solana has undergone in the past year. Although this topic may seem technical, I will do my best to explain it in a clear and concise manner.

QUIC TPU (Transaction Processing Unit)

QUIC TPU (QUIC Transport for Processing Units) is a significant upgrade to the Solana network that enables it to utilize the QUIC transport protocol for communication between validators. QUIC is a novel transport protocol that is designed to be more efficient and dependable than TCP, the protocol that Solana previously employed.

QUIC provides several benefits over TCP, including:

● Improved performance: QUIC can considerably enhance Solana's performance by reducing transaction latency and increasing network throughput.

● Reduced overhead: QUIC has less overhead than TCP, which means it can process more transactions per second.

● Increased reliability: QUIC is more dependable than TCP, which means it is less likely to experience errors.

QUIC TPU works by using the QUIC transport protocol for communication between validators. This means that validators send and receive transaction data using QUIC. QUIC employs several methods to improve performance and reliability, including:

● Multiplexing: QUIC allows for the transmission of numerous data streams over a single connection. This improves performance by lowering the number of connections that must be created.

● Head-of-line blocking: QUIC prevents head-of-line blocking, a problem that can arise with TCP. Head-of-line blocking occurs when all subsequent packets can be delayed by a single packet loss. QUIC employs a strategy known as packet pacing to prevent head-of-line blocking. Packet pacing ensures that packets are sent at a controlled rate, which helps to prevent packet loss.

● Forward error correction: QUIC uses forward error correction to detect and repair packet errors. This contributes to QUIC's increased dependability.

QUIC TPU is a significant improvement to Solana that has the potential to significantly improve the network's performance, reliability, and scalability. It is still under development, but it has the potential to make Solana one of the most efficient and reliable blockchain networks available.

Another key feature of QUIC that QUIC TPU uses is flow control. Flow control allows devices to control the rate at which data is sent to them. This is important because it prevents the network from being overloaded with data. This can lead to reduced congestion and improved performance. Another important feature of QUIC is stream priority. Stream priority allows devices to specify which data streams are most important. This allows the network to prioritize the most important data streams, which can improve the performance of critical applications. QUIC TPU is a significant upgrade to Solana that can improve the performance, reliability, and scalability of the network. QUIC TPU works by using the QUIC transport protocol for communication between validators.

Stake-Weighted QoS

Stake-weighted quality of service (QoS) is a feature of the Solana blockchain that allows nodes with more SOL to have their transactions prioritized. This is done by giving nodes with more SOL a higher chance of being selected to produce the next block. This feature is important because it helps to ensure that all transactions are processed fairly, regardless of the size or complexity of the transaction. It also helps to prevent spam attacks, as attackers would need to have a significant stake in the network to prioritize their transactions.

Stake-weighted QoS works by assigning a weight to each transaction based on the amount of SOL that the sender has in the Solana network. This weight is then used to determine the order in which transactions are processed. Transactions with a higher weight will be processed faster than transactions with a lower weight.

There are a few different ways to implement stake-weighted QoS. One common approach is to use a lottery system. In this approach, each transaction is assigned a random number, and the transactions with the highest random numbers are processed first. The probability of a transaction being selected is proportional to the transaction's weight.

Another approach to implementing stake-weighted QoS is to use a queueing system. In this approach, transactions are placed in a queue, and the transactions with the highest priority are processed first. The priority of a transaction is determined by the transaction's weight.

Stake-weighted QoS is an important feature of the Solana blockchain that helps to ensure that all transactions are processed fairly and efficiently. It also helps to prevent spam attacks and other malicious activity.

Benefits of Stake-weighted QoS

Stake-weighted quality of service (QoS) is a novel consensus mechanism that prioritizes transactions based on the amount of SOL staked by the sender. This mechanism offers some advantages over traditional first-come-first-served (FCFS) transaction processing, including:

● Fairness:Stake-weighted QoS ensures that all users have an equal opportunity to have their transactions processed, regardless of their network resources or transaction fees. This is because nodes are more likely to select and process transactions from users with higher stakes. This helps to prevent wealthy users or large exchanges from monopolizing network bandwidth and processing power.

● Spam prevention: Stake-weighted QoS also helps to deter spam attacks, as attackers would need to stake a significant amount of SOL to prioritize their transactions. This makes it more costly and difficult for attackers to launch spam attacks, which can improve the overall performance and reliability of the network.

● Performance: Stake-weighted QoS can also improve the performance of the Solana blockchain by reducing the time it takes for transactions to be processed. This is because nodes are more likely to select and process transactions from users with higher stakes. As a result, users with higher stakes can expect their transactions to be processed more quickly.

Stake-weighted QoS is a valuable feature of the Solana blockchain that offers some advantages over traditional FCFS transaction processing. It helps to ensure that all users have a fair and equal opportunity to have their transactions processed, deters spam attacks, and improves the overall performance and reliability of the network.

Here is a specific example of how stake-weighted QoS can benefit the Solana blockchain:

Imagine a scenario where a large exchange is trying to process a high volume of transactions at the same time as a regular user. Under a traditional FCFS system, the exchange's transactions would likely be processed first, as they would be submitted sooner. This would leave the regular user's transaction waiting in line, which could take a significant amount of time to be processed.

However, with stake-weighted QoS, the regular user could have their transaction processed more quickly if they have a higher stake in the network than the exchange. This is because nodes are more likely to select and process transactions from users with higher stakes. This helps to ensure that all users have a fair and equal opportunity to have their transactions processed, regardless of their network resources or transaction fees. Stake-weighted QoS is a powerful tool that can help to improve the fairness, security, and performance of the Solana blockchain. It is a key feature that distinguishes Solana from other blockchains and makes it a more attractive platform for users and developers alike.

Localized Fee Market

A localized fee market is a type of fee market that allows for the dynamic pricing of transaction fees based on local demand. In the context of Solana, this means that the price of transaction fees can vary depending on the type of transaction and the current demand for blockspace.

There are several advantages to using a localized fee market. First, it can help to improve the performance of the network by incentivizing users to pay higher fees for transactions that are more time-sensitive. This can help to reduce the backlog of transactions and improve the overall throughput of the network. Second, a localized fee market can help to reduce spam by making it more costly to send unnecessary transactions. This can help to improve the security of the network and make it more efficient. Third, a localized fee market can help to create a more equitable marketplace for transaction fees. By allowing fees to fluctuate based on demand, the network can ensure that all users have a fair chance of having their transactions processed.

Solana's move to a localized fee market is a significant step forward in its evolution as a blockchain platform. It is a move that is likely to benefit all users of the network, from developers to investors to consumers.

One example of how a localized fee market works on Solana is as follows:

Imagine that there is a new Solana-based NFT marketplace that is launching. On the day of the launch, there is a lot of demand to mint NFTs on the new marketplace. This means that the fees for minting NFTs will be higher than usual. This is because there is more competition for blockspace from users who want to mint NFTs. Blockspace is a limited resource on blockchains, and users who are willing to pay higher fees are more likely to have their transactions included in the next block.

However, the fees for other types of transactions, such as sending SOL tokens to a friend, will not be affected. This is because the demand for blockspace for these types of transactions is lower. As the demand for minting NFTs decreases, the fees for minting NFTs will also decrease. This is because there will be less competition for blockspace.

Localized fee markets can help to improve the performance of blockchains by reducing congestion. When users can pay different fees for different types of transactions, they are more likely to submit their transactions to the most efficient parts of the network. This can help to free up resources for other users and improve the overall performance of the blockchain.

Localized fee markets can also help to improve the security of blockchains by incentivizing miners to process transactions from all users, regardless of the fee they are paying. When miners/validators can earn fees from all types of transactions, they are more likely to participate in the network and help to secure it.

Solana's fee priority system is a unique and innovative approach to transaction processing. It leverages the power of the market to prioritize transactions based on their importance to users. The system works by charging users a base fee and a priority fee. The base fee is paid to the validator who processes the transaction, while the priority fee is paid to the validator to prioritize the transaction. The base fee is calculated based on the demand for blockspace, while the priority fee is set by the user.

This system creates localized fee markets, which are different types of transaction markets that emerge based on the priority fees that users are willing to pay. For example, if there is a lot of demand for NFT mints, then the priority fee for NFT mints will be higher than the priority fee for other types of transactions. This means that NFT mints will be processed sooner than other types of transactions.

Localized fee markets have many benefits; They reduce the backlog of transactions, they reduce spam, and they encourage users to pay for the resources that they need.

QUIC TPU and Stake-Weighted QoS are not user-facing technologies, meaning that everyday users may not immediately see the value in these upgrades. The localized fee market, on the other hand, is more user-facing and is likely to resonate most with NFT enthusiasts. While I am not a developer and cannot arbitrarily score these technology developments, I can say that they appear to be well-conceived and will help to improve the Solana ecosystem overall. The fact that the developers are continuing to ship updates, even during a bear market, is a positive sign for the ecosystem.

In conclusion, Solana receives a "Yeah" in this section.

You can read the complete article on my medium page here.