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Solana Ecosystem Call [June 2024] ft. Squads, Sphere, and 21.co

By Superteam

Published on 2024-06-06

Explore Solana's latest innovations including Squads' smart wallet Fuse, Sphere's instant crypto-to-bank transfers, and 21.co's Bitcoin integration on Solana.

The notes below are AI generated and may not be 100% accurate. Watch the video to be sure!

Solana Ecosystem Call: Groundbreaking Developments in Smart Wallets, Payments, and Bitcoin Integration

The June 2024 Solana Ecosystem Call, powered by Superteam, brought together key players in the Solana ecosystem to discuss recent developments, upcoming projects, and the overall state of the network. This monthly gathering serves as a vital touchpoint for the Solana community, providing insights into the latest innovations and achievements within the ecosystem.

The State of Solana: A Thriving Ecosystem

The call kicked off with an overview of Solana's current state, highlighting impressive growth across various metrics. Total Value Locked (TVL) on Solana has surged by 33% to $4.8 billion, showcasing increased confidence and activity within the ecosystem. Non-voting transactions per day have risen by 10%, indicating heightened user engagement. Perhaps most notably, Solana is now processing over 800 True Transactions Per Second (TPS), which the host suggested might surpass the combined throughput of all Ethereum Layer 2 solutions.

Another significant development is the 10% increase in total staked accounts, reflecting growing participation in network security and governance. This uptick in staking activity is seen as a positive indicator of long-term commitment to the Solana ecosystem.

Wins of the Month: Solana's Growing Influence

The ecosystem call highlighted several major wins for Solana, demonstrating its increasing adoption and relevance in the broader cryptocurrency and financial technology landscapes:

PayPal's PYUSD Launch on Solana

In a groundbreaking move, PayPal has officially launched its stablecoin, PYUSD, on the Solana blockchain. This integration leverages Solana's unique token extensions, including confidential transfers, memo fields, and transfer hooks. The launch of PYUSD on Solana represents a significant step towards mainstream adoption of blockchain technology, potentially exposing PayPal's vast user base to the benefits of cryptocurrency.

Cosmos and Solana Integration

The Solana ecosystem has taken a significant step towards interoperability with the integration of the Inter-Blockchain Communication (IBC) protocol, courtesy of the Picasso network. This development allows Solana to connect with the Cosmos ecosystem, which comprises hundreds of interconnected blockchains. The integration promises to reduce fragmentation in the crypto space and improve user experiences across different blockchain networks.

Google Cloud Partnership with GameShift

Google Cloud has partnered with GameShift, a Solana Labs initiative, to streamline the development of on-chain games. This collaboration aims to significantly reduce the time required to create blockchain-based games, from months to potentially just weeks. The partnership is expected to accelerate the adoption of Web3 gaming by making it easier for developers to leverage Google Cloud's infrastructure in conjunction with Solana's high-performance blockchain.

21.co Launches Solana-Native Bitcoin

21.co, a major player in crypto-based exchange-traded products (ETPs), has introduced 21 BTC, a Solana-native Bitcoin product. This launch marks 21.co's entry into the Solana ecosystem, bringing with it $7.5 billion in assets under management and expertise from traditional finance markets.

Significant Capital Inflow to Solana

The Solana ecosystem has seen a substantial influx of capital, with $120 million bridged from other chains to Solana in the past month alone. This trend indicates growing interest and confidence in Solana's capabilities, with the first week of June already recording $60 million in inflows.

Solana's Economic Activity Surpasses Ethereum Layer 1

In a notable milestone, Solana's total economic value (revenue plus MEV) surpassed that of Ethereum's Layer 1 on May 14th, 2024. This achievement demonstrates the viability of Solana's low-fee model and its ability to generate substantial economic activity despite lower transaction costs.

Squads: Revolutionizing Wallet Security with Fuse

Garrett Harper from Squads introduced Fuse, Solana's first smart wallet, set to launch in the coming week. Fuse represents a significant leap forward in wallet technology, addressing key security concerns while enhancing user experience.

What are Smart Wallets?

Smart wallets, built on smart accounts, are programmable wallets that offer enhanced security features and customizable functionality. Unlike traditional wallets that rely on seed phrases, smart wallets like Fuse utilize a multi-key system for improved security.

Key Features of Fuse

  1. Dual-Key Security: Every transaction requires two keys, significantly reducing the risk of unauthorized access.
  2. Biometric Authentication: One key is stored on the user's device, controlled by biometrics.
  3. Two-Factor Authentication: The second key defaults to iCloud but can be replaced with a hardware wallet for enhanced security.
  4. Customizable Spending Limits: Users can set daily transaction limits without requiring both keys.
  5. Recovery Keys: Up to three recovery keys can be set, which can include email, hardware wallets, or other crypto wallets.

Harper emphasized that Fuse is designed to provide a secure storage solution for the majority of a user's assets, likening it to a savings account, while still allowing for easy access to funds for daily transactions.

Sphere: Bridging the Gap Between Crypto and Traditional Finance

Arnold, co-founder of Sphere, presented the company's latest innovation in crypto payments and off-ramping solutions. Sphere aims to address one of the most significant barriers to crypto adoption: the difficulty in converting cryptocurrency to fiat currency for real-world use.

The Offloader Wallet: Seamless Crypto-to-Bank Transfers

Sphere introduced the Offloader Wallet, a groundbreaking solution that allows users to create a wallet address directly linked to their bank account. Any funds sent to this address are automatically converted and transferred to the user's bank account, typically within one day.

Key features of the Offloader Wallet include:

  • One-click setup process
  • Support for both ACH and wire transfers
  • Minimal fees (currently free for early adopters, with plans to introduce a 0.1% fee in the future)
  • Compliance with regulatory requirements through KYC processes

This innovation addresses a crucial pain point in the crypto ecosystem, making it significantly easier for users to utilize their crypto assets in the traditional financial system.

21.co: Bringing Bitcoin to Solana

Tom from 21.co introduced 21 BTC, a Solana-native Bitcoin product that aims to provide easy and secure access to Bitcoin on the Solana blockchain. This launch marks 21.co's expansion into the Solana ecosystem, bringing with it expertise from managing over $7.5 billion in crypto assets.

Key Features of 21 BTC

  • Institutional-Grade Security: Utilizes third-party custodians familiar with traditional finance standards.
  • Native SPL Token: Avoids bridge-related risks by issuing a native Solana token.
  • Transparent Reserves: Offers real-time proof of reserves through a dedicated dashboard.
  • Institutional Backing: Brings traditional finance players and market makers to the Solana ecosystem.

The introduction of 21 BTC is expected to increase Bitcoin's utility within the Solana ecosystem, enabling its use in DeFi applications, lending markets, and as collateral in various protocols.

Work-to-Earn Opportunities and Ecosystem Growth

The call also highlighted various opportunities for individuals to contribute to and benefit from the Solana ecosystem:

  • Talent Scout on Superteam Earn: A new feature that matches projects with talented individuals in the Solana ecosystem.
  • Bounties and Grants: Various programs offering funding for education, development, and community-building initiatives.
  • Hackathons: Upcoming events like Bonkathon and Solana Speedrun, offering substantial prizes for innovative projects.

The Future of Solana: Continuous Innovation and Growth

The June 2024 Solana Ecosystem Call painted a picture of a thriving, innovative blockchain ecosystem that continues to push the boundaries of what's possible in decentralized technology. From smart wallets enhancing security to seamless fiat off-ramps and institutional-grade Bitcoin products, Solana is positioning itself at the forefront of blockchain innovation.

The ecosystem's focus on user experience, security, and interoperability is evident in the projects showcased during the call. As Solana continues to attract both retail users and institutional players, it's clear that the platform is not just keeping pace with the broader crypto market but is actively shaping its future.

With ongoing developments in DeFi, gaming, and institutional adoption, Solana is cementing its position as a leading blockchain platform. The ecosystem's ability to attract major players like PayPal and Google, while fostering innovation from projects like Squads and Sphere, demonstrates its potential to drive mainstream adoption of blockchain technology.

As the Solana ecosystem continues to evolve, it will be exciting to see how these innovations translate into real-world applications and increased adoption. The June 2024 call serves as a testament to Solana's vibrant community and its commitment to building a more accessible, efficient, and secure blockchain future.

Facts + Figures

  • Solana's Total Value Locked (TVL) increased by 33% to $4.8 billion
  • Non-voting transactions per day on Solana rose by 10%
  • Solana is processing over 800 True Transactions Per Second (TPS)
  • Total staked accounts on Solana increased by 10%
  • PayPal launched its stablecoin PYUSD on Solana
  • $120 million was bridged from other chains to Solana in the past month
  • The first week of June saw $60 million bridged to Solana
  • Solana's total economic value surpassed Ethereum's Layer 1 on May 14th, 2024
  • Squads' multi-sig technology secures $10 billion in assets
  • Sphere processed over $100 million in payment volume in the last year
  • 21.co manages $7.5 billion in assets and has 40 different ETPs
  • 21.co has $700 million in assets under management specifically for Solana products
  • Superteam Earn has 22,000 registered users
  • The PIP ecosystem grants program is now available on Superteam Earn

Questions Answered

What is Fuse and how does it improve wallet security?

Fuse is Solana's first smart wallet, developed by Squads. It improves wallet security by using a dual-key system instead of a traditional seed phrase. Every transaction requires two keys - one stored on the user's device controlled by biometrics, and another that defaults to iCloud but can be replaced with a hardware wallet. This system significantly reduces the risk of unauthorized access and provides customizable security features like spending limits and multiple recovery options.

How does Sphere's Offloader Wallet work?

Sphere's Offloader Wallet creates a wallet address that is directly linked to a user's bank account. When cryptocurrency is sent to this address, it is automatically converted and transferred to the linked bank account, typically within one day. The process is designed to be simple, requiring just a one-click setup after completing necessary KYC procedures. It supports both ACH and wire transfers, making it easy for users to convert their crypto assets to fiat currency.

What makes 21 BTC unique among Bitcoin products on Solana?

21 BTC is a Solana-native Bitcoin product launched by 21.co, a major player in crypto-based exchange-traded products. What makes it unique is its institutional-grade security, using third-party custodians familiar with traditional finance standards. Unlike other Bitcoin products on Solana that rely on bridges from Ethereum, 21 BTC is issued as a native SPL token on Solana, avoiding bridge-related risks. It also offers real-time proof of reserves through a dedicated dashboard, providing transparency to users.

How is PayPal's PYUSD stablecoin utilizing Solana's features?

PayPal's PYUSD stablecoin on Solana is leveraging the blockchain's unique token extensions. These include confidential transfers, which enhance privacy by obscuring transaction details, memo fields for adding additional context to transactions, and transfer hooks that enable various plugins. This implementation showcases how traditional financial institutions can utilize Solana's advanced features to create more versatile and secure digital assets.

What is the significance of Solana's integration with the Cosmos ecosystem?

Solana's integration with the Cosmos ecosystem through the Inter-Blockchain Communication (IBC) protocol is significant because it enhances interoperability between blockchain networks. This integration allows Solana to connect with hundreds of other blockchains in the Cosmos ecosystem, reducing fragmentation in the crypto space and improving user experiences across different networks. It represents a step towards a more interconnected and efficient blockchain landscape.

How is Google Cloud's partnership with GameShift benefiting game developers?

Google Cloud's partnership with GameShift, a Solana Labs initiative, aims to streamline the development of on-chain games. This collaboration allows developers to create blockchain-based games directly within Google Cloud's infrastructure, potentially reducing development time from months to weeks. It provides easy access to tools for implementing features like seamless payments, marketplaces, and interoperable game assets, accelerating the adoption of Web3 gaming on Solana.

What new opportunities does Superteam Earn offer to the Solana community?

Superteam Earn has introduced a new feature called Talent Scout, which matches projects with skilled individuals in the Solana ecosystem. It uses AI-powered matching to suggest suitable talent for project listings. The platform now has 22,000 registered users and offers various bounties, grants, and job opportunities. It serves as a central hub for finding work and talent within the Solana ecosystem, making it easier for projects to find qualified individuals and for community members to find relevant opportunities.

How has Solana's economic activity compared to Ethereum's recently?

On May 14th, 2024, Solana's total economic value, which includes revenue plus MEV (Miner Extractable Value), surpassed that of Ethereum's Layer 1. This milestone is significant because it demonstrates the viability of Solana's low-fee model. Despite having lower transaction costs, Solana has managed to generate substantial economic activity, challenging the notion that low fees are unsustainable for blockchain networks.

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