 
 
Neon EVM is pioneering the Network Extension Category on Solana to bring a new era of united growth. Neon, a leading Ethereum Virtual Machine (EVM) on Solana, has formally adopted Network Extension as a product category.
This new decision will bring many solutions to Solana by providing clarity to developers and users alike. Neon EVM perfectly fits this position because it is not a typical Layer 1 or Layer 2 blockchain but fits in the category of others like MagicBlock and MetaPlex.
Because it is deployed directly on Solana’s blockchain and relies upon its settlement, consensus, and data availability, Neon EVM is part of an emerging product category known as Network Extensions.
Controversies Around Network Extensions
Neon EVM falls into a new category of products known as Network Extensions, which has generated some controversies. The controversies started in September, with co-founder Anatoly Yakovenko calling Ethereum’s L2 solutions “parasitic” because they drain liquidity and fragment the ecosystem.
Some Solana advocates have supported this view, saying L2s create a disjointed user experience. Others, however, believe Solana’s Network Extensions are “natively composable” and enhance the core chain without pulling liquidity.
 
They also argue that Neon EVM maintains a direct connection to Solana’s base layer, enabling seamless composability without Ethereum’s issues.
Binging Ethereum Compatibility to Solana
Solana extensions natively integrate with the Solana base layer, so they are considered to be specialized modules that strengthen the network’s functionalities. This allows new capabilities to be added without compromising Solana’s core performance and composability.
With Neon EVM, Ethereum compatibility for dApps is now available alongside an execution environment with Solana. Unlike Optimistic or ZK Rollups, Neon doesn’t process transactions off-chain but via Neon Proxy.
Developers can also deploy Ethereum dApps on Solana, leveraging Solana’s core capabilities without Rust coding. Neon EVM also seamlessly integrates with Solana at the protocol level and maps Ethereum transactions directly into Solana instructions, leveraging Solana’s advanced sea-level transactional infrastructure.
Davide Menegaldo, CCO of Neon EVM, highlights the importance of network extensions, stating, “Network Extensions offer a powerful way to enhance and augment the capabilities of blockchain networks like Solana without the downsides typically associated with traditional scalability solutions.”
Neon EVM also offers unified liquidity, enhanced user experience with native wallets and easy tools, and remains native to the host chain without competing with or overlapping it, thus setting the pace for Network Extensions on Solana.
Source: https://zycrypto.com/neon-evm-pioneers-network-extension-category-on-solana-ushering-in-a-new-era-of-unified-growth/