Max emphasized that Anza is committed to reaching an ambitious target of 1 million transactions per second (TPS) by the end of the year. This goal is set high not just for marketing purposes, but as a technical requirement to effectively compete with established players like NASDAQ. The activation of SIMD 207 and the development of Agave 2.2 are steps towards achieving this milestone. Additionally, he mentioned that the focus will remain on doubling the TPS every year thereafter.
2. Pipelining for Reduced Latency
Max discussed the concept of pipelining, which separates execution from consensus in order to achieve lower block times. Currently, Solana operates at around 380 milliseconds, with aspirations to bring it down further to 20 milliseconds. This methodology allows multiple blocks to be processed concurrently, leading to significant improvements in performance. Max believes that these innovations could enable comparable or better latency than established systems.
3. Need for Tighter Bid-Ask Spreads
Max highlighted the importance of having better pricing than NASDAQ, particularly in the context of lower bid-ask spreads. He explained that tighter spreads encourage more retail flow, allowing market makers to tighten their own spreads and offer better prices. This notion is critical for Anza's strategy to lure users away from traditional exchanges. By creating a more appealing pricing structure, Solana can enhance its market competitiveness.
4. Market Structure Improvements
Max addressed the existing market structure challenges on Solana, particularly the current batching and auction mechanisms that hinder the ability of market makers to cancel orders effectively. Illustrating his points with data, he argued that making cancellations more advantageous would empower market makers and improve liquidity. The key idea is to prioritize cancellations in the order book to minimize losses during price jumps, which would ultimately lead to tighter spreads.
5. Multiple proposer System for Enhanced Flexibility
A crucial insight shared by Max was the implementation of a multiple proposer system that would allow for the first-come, first-served order of cancellations and transactions. This feature would not only improve execution efficiency but also enhance applications' abilities to dictate their own transaction ordering, potentially preserving better market conditions. By incorporating flexible rules, developers can create better user experiences while utilizing Solana's blockchain technology.
6. Turbine Protocol Enhancements
Max elucidated the role of Solana's turbine protocol in minimizing latency during the transaction processing. He described how the protocol shreds blocks for distribution, integrating redundancy to ensure failure resilience. Going forward, modifications will allow for a multi-leader system, ensuring quicker consensus and reconstruction of transactions. This alteration aims to protect market integrity and support effective pricing strategies.
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