Manual human intervention during network issues has been one of the biggest problems of Solana. The company has received a lot of criticism over its manual intervention and it was about time that it needed to change.
Co-founder of Helius Labs, Mert Mumtaz took to his Twitter recently to announce that Solana is taking action on its manual human intervention problem during network issues.
Mumtaz further tweeted the remaining Twitterati how much time it took Ethereum to be where it is today. Believers of Solana welcomed the idea. Various other users commented that not accepting failure and taking the challenge to be better is what makes Solana the best.
What is Solana and what are the problems it faces?
Solana is an open project that provides DeFi solutions by using blockchain technology. It is basically designed to create decentralized apps. Solana is usually known as the Ethereum Killer because of the similarity that it shares with Ethereum. The major difference between Solana and Bitcoin is that it uses a proof-of-history mechanism whereas BTC and ETH use a proof-of-algorithm mechanism.
Anatoly Yakovenko, co-founder of Solana described the proof-of-history concept in 2017, December. The concept of PoH is proof to verify orders and the passage of time between events. PoH is basically used to encode the passage of time into a ledger with utmost trust.
Yakovenko explained in 2017 why Solana is adapting the proof-of-history concept. He explained that back at that time publicly available blockchains were unable to rely on time. The problem was that every node had a different time zone and every node relied on its own time zone.
The unavailability of a standardized clock created a lack of trust. That ultimately led to the uncertainty that whenever a message timestamp would get accepted or rejected, there was no guarantee that every other participant in the network would make the exact same choice.
Arbitrage botting
Arbitrage is a process used to make quick profits in an unhealthy manner. It simply means buying a digital asset at a cheaper price from an exchange and selling it at a higher price simultaneously in another exchange. The price difference is usually the profit. The profit that is gained with the difference is usually termed arbitrage trading.
Solana’s advantage of cheap transaction fees attracts arbitrage trading in this. When the price movements are highly volatile, traders use bots to create thousands of fake transactions and make profits from them.
NFT mint botting
When a user mints an NFT, they convert digital data into a unique digital asset that can be exchanged on an NFT marketplace.
NFT mining is very profitable and if the project is popular it can make good profits. Due to the limited number of NFTs in each collection traders use bots to spam mint transactions on the network. The minting by these bots multiples NFTs which are later sold in marketplaces such as Magic Eden and Solanart for great profits.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/18/long-awaited-automation-to-fix-network-issues-in-solana/