Beyond Layer 2s: How Solana Network Extensions Redefine Scalability

Slower transactions, split liquidity, and fragmented user experiences are challenges that limit the scalability of blockchains. Recognizing these issues, the Solana Foundation's Head of Strategy, Austin Federa, introduced the term Solana Network Extensions as a solution to keep the ecosystem unified and optimized within its main network.

Solana Network Extensions lets developers build custom applications directly on Solana’s main network, offering various solutions beyond rollups that enhance functionality without splitting liquidity or adding extra layers. This vision comes to life with Termina, powered by the Solana Virtual Machine (SVM), which simplifies the process of creating these extensions?

Termina: Redefining Blockchain Limitations Beyond Traditional Layer 2

Termina operates directly on Solana’s main network, keeping liquidity unified and ensuring faster, smoother transactions. Using the Solana Virtual Machine (SVM), Termina enables high-speed processing, allowing applications like DeFi and NFTs to run efficiently and at a lower cost. Its close integration with Solana’s ecosystem means developers can rely on native wallets and tools, creating a simple experience.?

Unlike traditional Layer 2 solutions, which depend on off-chain handling that can cause delays and added fees, Termina stays fully within Solana, enabling developers to build specialized applications without the complexities of multiple layers—keeping the focus on performance and ease of use.

The Benefits of Solana Network Extensions Over Layer 2 Solutions

While Layer 2 solutions increase blockchain scalability by handling transactions off-chain, they often fragment liquidity and slow down data flow. Additionally, their reliance on the main blockchain for security can lead to delays in withdrawals due to fraud checks, prolonging transaction times. Extra fees are also incurred for mainchain security, and any vulnerability in the main network can impact Layer 2 security, creating potential risks.?

In contrast, Solana’s network extensions offer scalability within the main blockchain itself, maintaining unified liquidity and high speed without the need for off-chain processing.?

Helium is a great example of how a project can benefit from Solana’s fast and affordable network, allowing it to support a large number of connected devices reliably and at low cost.

Similarly, Neon EVM uses Solana network extensions to bring Ethereum-compatible dApps into Solana’s high-speed environment, enhancing flexibility without the downsides of separate L2 systems.?

How Solana’s SVM Attracts High-Performance Blockchain Projects

Certain blockchain projects that started on virtual machines (VMs) like Ethereum’s EVM are finding a better fit with Solana’s Solana Virtual Machine (SVM) due to its unique capabilities. Optimized for parallel processing, Solana’s SVM supports thousands of transactions per second at minimal costs. Unlike the EVM, which processes transactions sequentially, SVM’s parallel model enhances throughput and reduces fees, making it ideal for applications that need speed and scalability, like DeFi, gaming, and IoT.

An example is MakerDAO, whose team proposed moving to Solana’s architecture, valuing its robust design, efficiency, and ability to support high-speed operations. The SVM’s minimal fees and rapid processing make it particularly appealing for finance and IoT-based applications, where quick, cost-effective transactions are crucial.

This shift isn’t limited to decentralized projects; many institutions are also exploring Solana’s infrastructure due to its performance and adaptability. For organizations that require a secure, regulated environment, Solana Permissioned Environments (SPEs) offer a compelling solution. SPEs provide the speed and efficiency of Solana’s main network but within a permissioned, controlled framework. This approach allows institutions to operate within regulatory requirements, maintaining control over participant access while benefiting from Solana’s high-speed, low-cost architecture.

Real-World Applications: Helium and Jito on Solana’s Network

Helium and Jito demonstrate the practical benefits of Solana’s infrastructure, enabling blockchain solutions to support large-scale applications. With Solana, Helium enables a decentralized wireless network for IoT devices and 5G connectivity, providing low-cost, reliable access that traditional telecom providers often struggle to deliver affordably. This network supports thousands of active hotspots worldwide, connecting devices in real-time and allowing users to earn tokens to share their network coverage. The cost-effectiveness and high transaction speed Solana provides are key to Helium’s implementation.

Meanwhile, Jito’s Node Consensus Networks (NCNs) leverage Solana’s security to enhance data reliability and efficiency for blockchain applications. NCNs are decentralized networks of nodes that confirm transactions and validate information, which is crucial for financial applications and other data-driven platforms. Through Solana’s Restaking framework, Jito’s NCNs can support multiple applications using shared tokens, reducing costs and increasing token utility across the ecosystem.

Termina’s Role in Strengthening Solana’s Network with SVM Rollups

Building custom blockchain environments on Solana has never been easier, thanks to Termina’s Solana Virtual Machine (SVM) network extension platform. Designed to simplify deployment, Termina offers developers ready-made tools like appchains, rollups, and batchers that allow for high-performance applications without the usual technical hurdles. With Termina, developers can set up specialized environments on Solana quickly, focusing on building powerful applications instead of managing complex setups.

A major feature of Termina is its integration with oracles, bringing real-time data directly into SVM rollups. This gives DeFi and gaming projects accurate, up-to-date information, ensuring smoother performance without additional data providers.

Termina also lets developers work seamlessly with Solana’s familiar tools and infrastructure, making customization easy while staying within Solana’s ecosystem. This access removes entry barriers, making SVM extensions a practical and efficient solution for teams aiming to build fast, scalable blockchain applications.

To explore Termina and start building with Solana’s Network Extensions today, read their docs here.