Tushar Jain: Business development is the key to the success of blockchain, Solana’s technology roadmap is important for its future, and Ethereum is facing the challenges of a slowdown in trading.

Important takeaways

• Business development and marketing are more important than technology in the short term of blockchain success.
• Corporate blockchain efforts are facing challenges due to competing financial institutions.
• Solana’s future depends on the technology roadmap and sustainability development.
• Solana is seen as the most advanced blockchain in terms of technology and community effort.
• Using market price to measure fundamentals can be misleading in crypto.
• Rising barriers to entry benefit established platforms like Ethereum and Solana.
• Solana is winning bids from competitors like Base.
• Assessing blockchain ecosystems requires more than just price metrics.
• The Ethereum message is modified by market forces.
• Solana’s neutrality and small market structure are key advantages.
• Solana has a significant edge over Ethereum in trading and capital markets.
• Ethereum’s Layer 2 strategy did not successfully leverage Layer 1.

Guest introduction

Tushar Jain is the founder and Managing Partner at Multicoin Capital, where he leads portfolio construction, risk management, and trading. He founded the company in 2017 as a thesis-driven investment firm focused on crypto, tokens, and blockchain companies. Previously, he founded ePatientFinder, a health IT startup that raised over $10 million in venture capital and was acquired by Elligo Health Research.

The importance of business development over technology

• “The technology behind blockchain may not be as critical as business development and marketing strategies in the short term.” – Tushar Jain
• Solana’s current technology is considered adequate for the foreseeable future.
• “The two giants are using stablecoins in a big way that will eventually move the needle in a big way.” – Tushar Jain
• The focus is on business development and marketing.
• Business blockchain efforts face challenges due to competing interests.
• “If you think Goldman is going to adjust its trading to a chain controlled by JPMorgan, I don’t think you understand how competitive these entities are.” – Tushar Jain
• Historical examples show skepticism about corporate blockchain solutions.
• Competitive forces in the financial sector hinder the success of business blockchain.

Solana’s technological development and market situation

• Solana’s future is highly dependent on the technology roadmap and robustness development.
• “The first thing to think about for Solana this year is the technical road map.” – Tushar Jain
• Solana is currently the most technologically advanced blockchain.
• “The series from a technical perspective is firing on all cylinders.” – Tushar Jain
• Solana’s community effort is a huge benefit.
• Scalability improvements will improve the Solana classification.
• The discovery of the fire dance is essential to the development of Solana’s network.
• Solana’s market power is enhanced by its technological advancements.

Misleading references and competing sites

• Using the market price as an indicator of fundamentals is misleading.
• “You have to look under the hood to understand where things are and where they’re going.” – Tushar Jain
• Barriers to entry into new fields of engineering are rising.
• Established platforms like Ethereum and Solana benefit from these constraints.
• Ethereum and Solana have unique go-to-market strategies.
• Both Ethereum and Solana have a very different approach to markets. – Tushar Jain
• These strategies set them apart from other platforms.
• Understanding strategic positioning is important in a competitive market.

Solana’s competitive edge and ecosystem growth

• Solana wins applications away from competitors like Base.
• “Solana seems to be winning here in an organic way.” – Tushar Jain
• The power of an ecosystem cannot be defined by its price alone.
• “There are many strong things that are yet to happen in Solana right now.” – Tushar Jain
• Assessing blockchain ecosystems requires more than just price metrics.
• Solana’s competitive advantages are critical to its growing ecosystem.
• Organic growth is a key factor in Solana’s success.
• Solana’s ability to attract applications is a huge advantage.

Ethereum’s challenges and Solana’s value proposition

• Ethereum messages often go astray, but the market corrects itself.
• “The market has fixed them.” – Tushar Jain
• Ethereum will not achieve the scale and throughput required for a consistent trading operation.
• “Ethereum lacks the scale and functionality of a consistent transaction.” – Tushar Jain
• Solana’s unique value proposition lies in its neutrality and small market structure.
• “Solana’s most exciting new approach to market microstructure.” – Tushar Jain
• Solana’s advantages are important in understanding competitive dynamics.
• Solana’s neutrality is a key factor in his marketplace.

Solana’s trading and capital markets profit

• Solana has a huge advantage over Ethereum in trading and capital markets.
• “Solana can win a lot of commercial cases and large markets for the use of emissions.” – Tushar Jain
• Ethereum’s Layer 2 strategy has yet to bring value back to Layer 1.
• “L2s do not return a value to L1.” – Tushar Jain
• Ethereum’s scaling challenges will hinder its competitiveness in trading systems.
• “Ethereum L1 cannot compete with any kind of trading applications.” – Tushar Jain
• Solana’s strength in trade and capital markets is critical to its standing.
• Understanding the competitive landscape is critical to assessing Solana’s market potential.

Solana’s two strengths and great design space

• Solana has a unique advantage in supporting both commercial and export operations.
• “Solana can support trade and is not neutral enough to support divestment.” – Tushar Jain
• The design space for innovation in blockchain technology is huge.
• “It is impossible to say that we have been crowned the winner.” – Tushar Jain
• Base could be a serious competitor to Ethereum.
• “Base itself is becoming a major competitor to Ethereum.” – Tushar Jain
• Continuous opportunities for innovation reflect the changing market environment.
• Solana’s two strengths are critical to its market position.

The effect of Alpenglow on the performance of Solana

• Alpenglow simplifies Solana’s adaptive approach.
• “Alpenglow reduces storage time and increases chain efficiency.” – Tushar Jain
• Alpenglow is expected to go live on the mainnet this year.
• “I expect it to go live on the mainnet this year.” – Tushar Jain
• Controlled Application Execution (ACE) allows applications to determine the order of transactions.
• “Each application can control the order of transactions within a block.” – Tushar Jain
• Alpenglow improves Solana’s functionality, which is important to users.
• Understanding Alpenglow’s impact is critical to assessing Solana’s future.

Transaction processing and market microstructure evolution

• Transaction processing can prioritize staked tokens without compromising protocol integrity.
• “If I have a lot of tokens staked and I don’t move that job, they can let the next guy in.” – Tushar Jain
• The design space for transaction processing will change dramatically.
• “This will be the evolution of the next big market building.” – Tushar Jain
• Improving liquidity and usability is a major focus of blockchain development.
• Understanding transaction processing methods is critical to evaluating blockchain solutions.
• The evolution of market microstructure will influence future blockchain systems.

Firedancer success and network resilience

• Firedancer was a huge success because of its impact on the competition between the main developers.
• “Firedancer has been a huge success and has created second-order benefits.” – Tushar Jain
• Firedancer has improved core chain performance by creating competition.
• “Firedancer created a sense of competition among key developers.” – Tushar Jain
• The ability to switch between authenticating clients improves network resilience.
• “Switching between authenticating clients is a big point of strength.” – Tushar Jain
• The wider implications of Firedancer emphasize its role in promoting competition and innovation.
• Understanding the impact of Firedancer is critical to assessing network resilience.

Decentralization and governance in blockchain

• Decentralization of protocol governance improves robustness and reduces the risk of malicious actions.
• “The meaningful distinction between people is who determines the course of the law.” – Tushar Jain
• Consensus among many groups in a fragmented environment leads to greater resilience.
• “Harmony between different groups may take a long time but it is very strong.” – Tushar Jain
• Understanding decentralized governance structures is essential to exploring blockchain security.
• Decentralization plays an important role in improving the stability of the blockchain protocol.
• Governance discussions in blockchain communities are critical to effective decision making.