Solana
Solana about to change: here’s why
Arman Shirinian
The Solana Foundation takes steps to improve the network
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In order to improve the fairness and integrity of its network, Solana takes major measures. The Solana Foundation’s recent action to remove discovered validators sharing mempool transactions was somewhat unexpected.
This measure is part of a broader initiative to reduce the maximum extractable value (MEV) and preserve an ecosystem that can be of confidence.
Due to sharing of mempool transactions, a number of Solana Foundation delegation program operators have been eliminated. Sharing them can lead to MEV-related actions, such as sandwich attacks, in which a malicious actor surrounds a victim’s transaction in order to profit from price fluctuations.
Enforcement action is still pending regarding the Solana Foundation’s final decision to remove these validators.
What makes this significant?
On blockchain networks, MEV is a crucial problem. By rearranging, adding, or removing transactions within a block, validators can maximize their profits from blockchain transactions. The Solana Foundation seeks to improve network security and ensure fair processing of transactions by opposing validators who engage in such actions.
As a result, Solana becomes a more attractive platform and helps investors and users gain trust. Regarding the impact on the market, it is said that some validators could continue with MEV procedures despite these precautions if they do not have access to specialized tools like Jito.
However, the Solana Foundation and investors provide a significant portion of the funding for Solana validators. These parties have the power to influence the actions of validators, potentially prohibiting them from executing the MEV.
In the short term, the foundation’s decision may seem too erratic, but at the same time, it is clearly a commitment to making the network safer and more secure. The long-term benefits will make the entire ecosystem more transparent and trustworthy. Of course, some can easily argue that this decision goes against the ethics of decentralization.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.