From: thepipeline_xyz
This article, based on a podcast conversation with Mt from Helius Labs, delves into the technical development and innovation driving the growth of high-performance blockchains like Solana and Monad. It explores the challenges of misinformation, the elements required to grow a thriving ecosystem, and the fundamental design choices that set these networks apart from existing blockchain environments.
Expert Perspective on Blockchain Development
Mt, the founder of Helius Labs, is recognized as a leading advocate for Solana and an engineer working on blockchain-related problems daily [01:33:00]. His background includes studying applied math and communications engineering with a focus on cryptography, and working in finance across major Canadian banks, fintech startups, and ultimately as a tech lead for platform engineering at Coinbase [01:49:00]. This diverse experience has given him a well-rounded perspective on the industry [03:16:00].
Addressing Misinformation in Crypto
A significant challenge in the crypto space is the prevalence of misinformation and disinformation [03:22:00]. Mt attributes this primarily to non-technical individuals who may lack sufficient domain knowledge, often gaining influence early on from successful coin investments, leading to a “blind leading the blind” scenario [03:50:00].
To combat this, Mt suggests that more “builders” need to speak out and produce content, fostering a “meritocracy of ideas” where the best concepts rise to the top through discourse and checks and balances [05:14:00]. He emphasizes the importance of correcting misinformation without being directly insulting, and the danger of “taboo concepts” where challenging established protocols or figures is discouraged [05:58:00].
Growing a Blockchain Ecosystem
For a blockchain to reach “critical mass,” several factors are crucial:
- Resilience through adversity: Both Solana and Ethereum have faced catastrophic events but emerged stronger, signaling inherent meaningfulness [07:50:00].
- Community and Developers: A strong developer community is essential as they are the ones building applications [08:26:00]. Hackathons, like those Solana hosts and Monad will likely host, are vital for this [09:10:00].
- Shared Values: Ecosystems thrive when there are combined values, such as Solana’s focus on low user costs and product innovation, or Ethereum’s emphasis on node accessibility [08:30:00].
- Community Building: Features like podcasts and strong, funny advocates who create solid memes are “pretty underrated” for building community, as blockchains are fundamentally “community computers” [09:21:00]. When core values are shared across developer and user communities, it creates an aligned group [10:03:00].
Bottom-Up System Optimization
Mt champions the philosophy of optimizing systems from the “bottom up” [10:36:00]. Using the analogy of building a race car, he argues that the engine (the base layer) must be optimized first, with other components supporting it [10:47:00]. This contrasts with Ethereum’s approach, which he suggests tries to compensate for an “okay” engine by optimizing other parts, leading to more fragmented and “duct-tapy” solutions [11:09:00].
Solana and Monad share this “bottom-up” mindset, focusing on optimizing the “base layer” (the engine) as much as possible, including how software leverages hardware efficiently [11:37:00]. This approach makes it easier to build higher layers and results in less fragmentation [12:00:00].
Key features supporting this in Monad include:
- Parallelization: Allowing multiple transactions to be processed simultaneously, even if they don’t overlap, unlike Ethereum’s single-thread execution [12:14:00] [13:39:00].
- Deferred Execution: Decoupling execution from consensus, meaning the ordering of transactions determines execution, which can happen separately [12:29:00] [14:19:00].
- Revamped EVM: Monad aims to eliminate Ethereum’s performance bottlenecks, such as state growth problems, state access issues, and inefficient code [13:13:00] [14:02:00].
These innovations allow builders to focus on product development without worrying about underlying scalability or other complexities [12:46:00].
Coexistence of EVM and SVM
Mt believes the coexistence of EVM (Ethereum Virtual Machine) and SVM (Solana Virtual Machine) is “inevitable” [16:36:00]. Historically, no single tech stack has dominated an entire market; there are always multiple options (e.g., iOS vs. Android, Xbox vs. PlayStation, AWS vs. Google Cloud) because developers desire choice [16:47:00].
Solana and Monad are not merely Ethereum forks; they optimize for different things in meaningful ways [17:26:00]. For example, Solana’s architecture enables features like on-chain order books, which are not feasible elsewhere [17:50:00]. While Ethereum relies on L2s for scaling, Mt foresees a future where both L1 paradigms will coexist, possibly even with a third VM like Move [18:05:00].
Validator Debates and Design Philosophies
The debate around validator costs and throughput highlights different design philosophies:
- Ethereum’s Approach: Aims to make nodes as accessible as possible for anyone to run, optimizing for decentralization in the event of extreme scenarios [20:16:00]. However, this approach can neglect the “demand side”—why someone would want to run a node beyond mere participation [21:05:00].
- Solana’s Approach: Has higher node requirements, primarily for internet connection rather than just hardware (a gaming rig is sufficient) [22:30:00]. This lower accessibility on the supply side is balanced by higher demand and benefits for validators, as they can build and secure applications that are unique to the network (e.g., minting millions of NFTs for $100) [22:50:00]. Businesses like USDC or Circle would run their own nodes regardless of cost because it’s essential for their operations [24:23:00].
Mt emphasizes that neither approach is inherently right or wrong; they are simply different design paths [23:28:00] [24:37:00]. He also notes that both networks share the same long-term endgame: block production by high-hardware machines and verification by lighter client machines [25:32:00]. Furthermore, ongoing developments like Jump Crypto’s Fire Dancer client for Solana are already showing reduced hardware requirements through software optimization [26:17:00].
The Role of L1s vs. L2s
Mt expresses a nuanced view on L2s, acknowledging their utility for specific cases, especially where global state is not required and finality needs are less strict (e.g., small games) [27:30:00]. However, he dislikes the narrative that L2s are the only way forward or a panacea for all problems [27:52:00].
He argues that L1s are generally more flexible and, while they might be worse in some cases, both L1s and L2s have their uses [28:19:00]. The idea of thousands of L2s for every website is unrealistic due to fragmentation and Ethereum’s inability to handle such scale [29:50:00].
Monad’s decision to launch as an L1 is seen as a “no-brainer” from first principles [30:42:00]. The goal is to build decentralized applications that solve problems for users, and while L2s are improving, they are currently still permissioned and centralized [30:48:00]. Building the best possible products requires a scalable, decentralized L1. Furthermore, Monad could easily add L2s in the future or even be forked to create app chains [31:41:00].
Attracting Developers and Future Outlook
While EVM chains are often touted for their existing developer base familiar with Solidity, Mt notes a growing influx of developers into SVM [33:11:00]. Solidity is generally easier to write than Solana’s Rust + functional programming, especially for most skill sets [34:24:00]. The responsibility for attracting developers falls on the teams building on these networks, like Infura for Ethereum or Helius for Solana [34:45:00].
Mt identifies two developer segments:
- Crypto-native: These developers will remain dispersed across SVM, Move, and EVM [35:06:00].
- Web2 builders: These individuals prioritize building scalable products and businesses. They will choose the best tool for the job, opting for a globally shared, composable state machine like Monad or Solana when needed, or L2s for simpler applications [35:20:00].
A significant advantage for Monad is its compatibility, allowing developers to “copy and paste” existing EVM applications, potentially bringing performance advantages to those apps [36:33:00]. This could generate significant momentum and prompt the Ethereum community to re-evaluate its L1 scaling strategy [37:16:00].
Beyond technical aspects, the “economic and social stuff” — attracting people who build valuable applications, fostering a community with distinct shared values, and retaining users — will be crucial for Monad [38:30:00]. Timing and market conditions also play a role [39:21:00].
For the next one to two years, Mt predicts increased competition among builders as capital shifts from AI back to crypto [41:01:00]. With blockchains finally scaling, they can now enable “delightful UX” and solve real-world problems [41:33:00]. The emergence of innovative applications that “change how we think about certain dynamics” will drive a flywheel effect, attracting more users and builders [42:43:00].
Real-World Problems and Use Cases
Mt emphasizes the need for crypto to focus on solving “real problems that people have” [45:08:00]. While DeFi still needs to address security and latency, it must offer a distinct benefit to users [45:53:00].
Key areas identified for the next step of blockchain development include:
- NFTs and Collectibles: Their success, exemplified by NBA Top Shot, stemmed from solving a real problem (collecting) and integrating into digital personas [46:25:00].
- Real-World Assets (RWAs): Tokenizing assets for more efficient and accessible finance [47:00:00].
- DePIN (Decentralized Physical Infrastructure Networks): Bootstrapping physical networks with tokens to create companies that couldn’t exist before, like Helium (mobile sector) or High Mapper (competing with Google Maps) [47:34:00]. GPU rendering is another application within this [48:05:00].
- Payments: The “OG use case,” where stablecoins offer a significantly easier way to send money internationally than traditional banking [48:15:00].
- Digital Identity: Another interesting area for development [48:55:00].
- Finance: Monad’s goal of enabling fully on-chain order books is a “noble goal” that could lead to better capital efficiency [49:05:00] [49:25:00].
Helius Labs’ Contributions
Helius Labs was founded to address the lack of useful applications in crypto, stemming from the historical difficulty of building fast, cheap, and scalable applications [50:23:00]. The company’s thesis is to provide developers with the tools to focus solely on product, without worrying about the underlying infrastructure [50:56:00]. While currently focused on Solana, Helius aims to improve the developer experience on high-performance L1s [51:19:00]. Mt sees potential for collaboration and sharing lessons between Solana and Monad on high-performance RPC and infrastructure [51:29:00].
Conclusion
The discussion highlights the ongoing technical innovation in the blockchain space, driven by projects like Solana and Monad that prioritize fundamental architectural improvements. The future of crypto lies in building scalable, decentralized applications that solve real problems, fostering strong communities, and embracing collaboration across different blockchain ecosystems. The upcoming Monad testnet and mainnet are highly anticipated as they aim to bring these innovations to the EVM landscape [54:52:00].