Neon EVM: Combining the Best of Ethereum and Solana Ecosystems

Introduction

Neon Labs has developed a revolutionary technology known as Neon EVM, which enables developers to execute smart contracts that are compatible with the Ethereum Virtual Machine (EVM) on the Solana blockchain.

By combining the strengths of both platforms, developers can benefit from the advanced features of Solana while maintaining compatibility with the extensive Ethereum ecosystem.

Key Features

Performance: By utilizing the Solana network, Neon EVM can offer unparalleled performance, with block times as low as 400 milliseconds and transaction throughput of up to 65,000 TPS. This makes it one of the fastest and most efficient EVM-compatible solutions available today. It can compute up to 2000+ transactions per second while keeping gas fees to a minimum (0.000015 sol/tx).
Secure Validators: Neon EVM utilizes an innovative consensus mechanism known as "Proof of Stake Sidechain," which facilitates quick confirmations of transactions and guarantees their immutability. This instills a sense of trust among developers who aim to create secure and vital applications.
Cross-compatibility: Developers can seamlessly transfer their current Ethereum smart contracts to the Solana blockchain, utilizing the advanced functionalities of Solana while retaining the familiar Ethereum programming model and tools. Popular Ethereum development tools such as Truffle, Hardhat and Remix can be used by developers to write, test, and deploy their smart contracts on the Solana blockchain.
Native Support: The platform is compatible with multiple versions of Solidity and provides native support for widely adopted Ethereum standards, including ERC-20 and ERC-721. In addition, it offers several Solana-specific functionalities, such as access to Solana accounts and the capability to use SPL tokens.

What is proof of sidechain

Proof of Stake - Sidechain (PoS) is a blockchain architecture that allows for the creation of a separate blockchain network that is connected to a primary blockchain network, such as Ethereum. The primary network serves as the "main chain", while the secondary network, or sidechain, operates independently but is still connected to the main chain.

The benefit of a PoS sidechain is that it allows for the creation of new features and functionalities that may not be possible on the main chain due to scalability limitations or other constraints. For example, a sidechain can be used to create specialized smart contracts or decentralized applications that are optimized for specific use cases.

PoS sidechains offer a flexible and scalable solution for blockchain networks that need to handle a high volume of transactions while maintaining security and decentralization.

By leveraging the benefits of PoS consensus mechanisms and sidechain architecture, PoS sidechains can provide a more efficient and environmentally sustainable alternative to traditional blockchain networks.

The Benefits of Combining Chains

The objective of the project is to merge the strengths of Ethereum and Solana, to create a solution that enables the following:

Solana users can use exclusive Ethereum toolkits for building dApps with Solidity.
Ethereum dApps can be launched on the Solana blockchain, which will attract a large number of Ethereum users to the Solana platform.
Ethereum users can significantly improve transaction speeds and reduce transaction fees by utilizing Solana's technology.

credits: Neon Labs

How it Works: A Deep Dive into Packets and Proxys

The Neon EVM is integrated with Solana and it operates inside to provide parallel transaction computing.

The Neon Web3 Proxy was created to mediate interactions between the Ethereum user (account) and Neon EVM. It is a high-performance middleware layer that sits between dApps and the blockchain network. It is designed to increase the speed of data retrieval from the blockchain by caching frequently accessed data. The workflow for the Neon Web3 Proxy involves integrating it into a dApp's backend infrastructure and providing an API for external clients.

The Berkeley Packet Filter (BPF) is a low-level programming language that allows developers to write custom code that can be executed by the kernel to filter network packets. Developers can integrate additional virtual machines within Solana by utilizing the BPF virtual machine that is installed in Solana. This capability has been leveraged to create the Neon EVM contract in Solana, which is then loaded within the BPF virtual machine.

Once loaded, the BPF programs can filter network packets in real-time, providing developers with granular control over network traffic. Because Solana has a contract update mechanism, the Neon EVM contract can also be updated independently from updates to the Solana node itself. This allows developers to update EVM versions without updating all the blockchain nodes.

As a Solana contract, the Neon EVM recognizes the transaction format in each received batch, and extracts data from each transaction, including original user information. The Neon EVM also verifies the signature in each transaction, and if the signature is authentic, it begins executing the contract code that the transaction is addressed. Once the contract code has been successfully executed, the Neon EVM records a new state.

The state information for each account is stored in a Merkle Patricia tree, which is a type of cryptographic data structure. This allows for efficient and secure storage of account data, as well as easy access to specific pieces of information within the tree.

When a transaction is executed in the Neon EVM, the state of the affected accounts is updated according to the contract code being executed. The updated account state is then stored in the Merkle Patricia tree, which reflects the new state of the network.

Summary

Neon EVM is a promising step forward in the continued growth and development of the web3 ecosystem, offering a powerful and efficient solution for developers and users alike. With Neon EVM, the potential for decentralized applications and services to drive innovation and transformation across industries and communities is greater than ever before.

For more information on Neon Labs, read the whitepaper or explore their docs.

Also, a huge shoutout to Jenny Riess who helped me make this article a much better piece of content. She's an amazing designer and developer documenting her learnings and journey. Go drop her a follow on twitter.

Shriraj Pawar's Blog