- Velas enhances the utility of its smart contract platform with the recent upgrade coming from an alignment with Solana network.
- The partnership opens up the possibility to interact with Ethereum Virtual Machine that allows smart contract based applications to function.
Velas continues to enhance the utility of its smart contract platform, with the most recent upgrade coming from an alignment with Solana network. With this newest partnership, Velas will be able to leverage Solana’s codebase and many of its features, such as access to one of the most advanced blockchain frameworks in the industry and the addition of Ethereum Virtual Machine (EVM) support on the Velas network.
Since Velas is a high throughput blockchain platform working on growing the decentralized finance ecosystem, the partnership opens up Velas to a lot of new possibilities. This includes the ability to interact with the EVM, the Ethereum Virtual Machine that allows smart contract based applications to function. Ethereum is by far the most widely used defi platform on the market, with the majority of dApps built on the network, so this EVM bridge will allow for those applications to run faster and smoother with Velas’ increased transaction per second (TPS) capabilities.
Defi Keeps on Chuggin’
Decentralized financial (defi) applications have taken the cryptocurrency ecosystem by storm. Innumerable dApps provide value to users through decentralized platforms such as buying or receiving insurance, trading an asset on an exchange, or giving or receiving a loan. The value proposition of this has been made very clear to users, causing defi apps to take off in popularity, with close to $25 billion in total locked value currently, compared to less than $1 billion just 10 months ago. Although the importance of these applications is evident, there are still many bottlenecks experienced by defi users, a problem that Velas is working on fixing.
Although Ethereum has the majority of defi applications and users, a number of deep-seated problems are holding it back from mainstream usability. One of these is the limited transaction processing capacity, with Ethereum currently only able to process about 10 TPS. With the new EVM bridge to Velas, Ethereum-based applications can be wrapped and executed on the Velas platform, allowing for much higher transaction speeds and thus greater usability. Another problem faced by Ethereum defi users is the extremely high transaction fees currently charged on the network. With the current rise in price across most cryptocurrency assets, especially Ether, users have seen a massive hike in Ethereum transaction fees, with Uniswap trades now routinely exceeding $50.
This current iteration of defi is not sustainable with Ethereum’s network conditions, as it simply doesn’t have the ability to efficiently operate at scale. The latest Velas and Solana partnership allows for the mitigation of many of these problems. The new features available for Ethereum users on the Velas network should defi applications a whole lot faster, easier, and cheaper for developers and users alike.
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