Nitro – Layer-2 Solution for Solana Launches
As competition among Layer-1 blockchains intensifies, finding solutions to scale blockchain networks, speed up transaction processing, and reduce transaction fees has become crucial. Solana, known for its reputation of being "fast and cheap," has faced some challenges. Recognizing the need for additional support, Solana has announced the launch of Nitro – its first Layer-2 solution.
Nitro – Layer-2 Solution for Solana Launches
Solana initially gained traction for its high-speed and low-cost transactions. However, as the ecosystem expanded, user numbers surged, and transaction volumes increased, Solana encountered several issues.
Most recently, on May 1, 2022, Solana experienced a major outage while handling a large volume of NFT-related transactions, resulting in an 8.5-hour downtime. Previously, Solana had suffered from outages due to issues like “transaction spam” and “attacks.”
These recurring issues have highlighted the need for Layer-2 solutions to alleviate the network's burden.
Nitro, developed by Sei Labs—a company founded by Goldman Sachs and Robinhood Markets Inc.—will serve as Solana’s Layer-2 solution. Nitro aims to integrate Solana’s robust execution capabilities with the growing developer community on Cosmos and IBC. It will act as a bridge connecting Solana with Cosmos.
Nitro will be highly compatible with the Solana Virtual Machine (SVM), allowing developers to easily deploy Solana’s decentralized applications (dApps) on Nitro while connecting to the Cosmos ecosystem. In simpler terms, dApps built on Nitro will benefit from both Solana’s high performance and the interoperability provided by IBC.
Additionally, Nitro will support user access through Solana wallets like Phantom, ensuring a seamless and user-friendly experience. Nitro is expected to officially launch in early 2023.
By enhancing throughput and interoperability, Nitro aims to become a key Layer-2 solution supporting the growth of DeFi.
Sei Labs, the developer behind Nitro, raised $5 million in a funding round on August 31, 2022. The investment round saw participation from prominent investors including Multicoin Capital, Coinbase, and FSR.
Pioneering projects often gain early advantages and community excitement. Given Solana's already established ecosystem, if Nitro successfully implements its Layer-2 solution for Solana, it could potentially achieve significant success similar to what Polygon has accomplished with Ethereum.
