Neon EVM: Bridging Ethereum + Solana For dApp Integrations🧞

Since its inception, Ethereum still suffers from high network fees and limited scalability compared to new generation blockchains like Solana. However, Ethereum boasts an extensive dApp ecosystem, deep liquidity, and a vibrant developer community. What if there was a way to harness the best out of both?

Imagine seamlessly merging the high-speed world of Solana with the rich ecosystem of Ethereum, without the usual friction. Neon EVM makes this a reality. With Neon EVM, the barriers that typically separate Ethereum and Solana crumble.

Developers can now deploy their Ethereum-based dApps on Solana’s lightning-fast network, harnessing its speed and low fees while keeping their familiar tools and code. This bridge isn’t just technical; it’s transformational, creating new possibilities for innovation and efficiency in the blockchain space.

This deep dive will explore how Neon EVM bridges the gap between Ethereum and Solana, detailing its innovative features, the technical workings behind its seamless operation, and how developers can leverage it for enhanced performance and scalability. Let’s dive in.

What Is Neon EVM?

Neon EVM is a version of Ethereum's Virtual Machine (EVM) built on the Solana blockchain. It allows developers to run Ethereum dApps on Solana without needing to rewrite their code. 

This integration combines Ethereum’s familiar development environment with Solana’s advantages, such as faster transactions and lower fees. Neon EVM makes it easier to use Solana’s technology while sticking with the Ethereum tools and standards developers already know.

How Does Neon EVM Work?

Neon EVM operates as a smart contract on the Solana blockchain, bringing Ethereum’s Virtual Machine capabilities to Solana. It achieves this by translating Ethereum transactions into a format that Solana can process. 

Here’s a closer look at how Neon EVM operates to bridge Ethereum and Solana seamlessly:

1. User Initiates Transaction

It all begins when a user initiates a transaction via an Ethereum dApp. This transaction is signed in a manner familiar to Ethereum users.

2. Neon Proxy Takes Charge

The transaction is then sent to a Neon RPC endpoint. Here, the Neon API service picks up the transaction and forwards it to the Neon Proxy. The Neon Proxy plays a crucial role in this process:

• Gas Estimation: It estimates the transaction fees needed for Neon EVM.

• Wrapping: It converts the Ethereum-style transaction into a format compatible with Solana.

3. Execution On Neon EVM

The wrapped transaction is forwarded to the Neon EVM program on the Solana blockchain. The Neon EVM program handles:

• Unwrapping: It extracts the original Ethereum-like transaction details.

• Signature Verification: It ensures the transaction's validity by checking the user’s signature.

• State Retrieval: It retrieves necessary account data and smart contract code from Solana storage.

• Transaction Execution: It processes the transaction within Solana’s secure Berkeley Packet Filter (BPF) environment.

• State Update: It updates the Solana state to reflect the transaction's results.

4. State Change and Completion

Finally, both Solana and Neon EVM reflect the state changes from the completed transaction. Neon EVM takes advantage of Solana’s ability to handle transactions in parallel, providing efficient and secure processing compared to traditional sequential EVMs.

The result is a seamless integration where Ethereum dApps can run on Solana’s fast, low-cost network without needing extensive changes to their original code.

Key Features of Neon EVM🚧

Neon EVM merges the best of Ethereum and Solana, offering a powerful platform with unique features that cater to developers seeking high performance and low costs. This fusion brings several standout features:

1. Ethereum Compatibility

Neon EVM supports Ethereum’s development tools and standards, including Solidity, Vyper, and popular frameworks like Hardhat and Remix. This means developers can deploy their existing Ethereum dApps with minimal changes.

2. High Throughput

Utilizing Solana’s infrastructure, Neon EVM offers impressive transaction speeds, with the capacity to handle over 2000 transactions per second (TPS), significantly surpassing Ethereum’s throughput

3. Low Transaction Costs

Transactions on Neon EVM are highly cost-effective. Users benefit from Solana’s low gas fees, with costs as low as $0.003 per transaction

4. Fast Block Times

Neon EVM achieves rapid block times of around 400 milliseconds, thanks to Solana’s efficient consensus and parallel processing technologies.

5. Parallel Execution

Leveraging Solana’s Sealevel parallelization, Neon EVM processes multiple transactions simultaneously, reducing latency and enhancing overall performance.

6. Security

Each Ethereum smart contract operates in its own isolated environment within Solana, preventing malicious contracts from affecting others. Neon EVM’s architecture is also audited by prominent security firms.

7. Seamless Integration

Neon EVM enables Ethereum dApps to interact with Solana’s ecosystem, including native Solana tokens and NFTs, while using familiar Ethereum tools and interfaces

8. Modularity

The platform separates different operational layers (execution, storage, consensus) to optimize resource use and scalability, offering developers greater flexibility in dApp design and performance.

Neon EVM’s DAO and Governance🏛️

Neon EVM is governed by the Neon DAO, a decentralized body that ensures the platform evolves in a community-driven and transparent manner. The DAO is organized into specialized Assemblies: 

• Ecosystem Focus Area: Drives community initiatives and growth

• Development Focus Area: Dedicated to technical updates

• Security Focus Area: Tasked with safeguarding the platform from malicious threats.

The governance process begins when community members propose changes or improvements via the Neon Forum on Discord. If a proposal garners enough support, it progresses to on-chain governance. Here, NEON token holders vote on the proposal, with each token equating to one vote. 

For a proposal to pass, it must meet the required threshold for "Accept" votes and surpass "Reject" votes. Approved proposals then enter a hold-up period before being executed, allowing time for any final adjustments.

Transparency is at the heart Neon DAO’s operation. All proposals and voting outcomes are accessible on the Neon Governance UI, ensuring that every participant can stay informed and involved. This system of governance not only empowers the community but also maintains the platform's adaptability and responsiveness to new challenges and opportunities.

$NEON Token🪙

The NEON token is central to the Neon EVM ecosystem, serving both as a utility and governance token. As a utility token, NEON facilitates transactions within the Neon platform, covering costs associated with deploying and interacting with dApps. 

Token Parameters

• Divisibility: NEON can be divided into Alans, where 1 NEON equals 1,018 Alans or 109 Galans.

• Stability: The token has no inflation or deflation rates.

• Transaction Fees: Fees are split equally between Solana Validators and the Neon DAO Treasury.

• Dual Role: NEON acts as an SPL token on Solana and a native token on the Neon EVM, similar to ETH on Ethereum.

Token Utility

• Transaction Payments: NEON is used for all transaction fees on the Neon EVM, including those paid to Neon operators.

• Operator Responsibilities: Operators convert NEON transactions into Solana transactions and cover the cost of execution. They pay in SOL to Solana Validators and the Neon DAO Treasury.

• User Payments: Users pay in NEON tokens for transaction execution, covering Solana validation fees, Neon EVM platform fees, and operator commissions.

• Voting Rights: NEON holders can propose and vote on changes to the Neon protocol, influencing future developments.

• Gas Fees: Gas fees are based on the gas amount multiplied by the gas price. Users pay NEON tokens to Proxy Operators, who use SOL to cover validation and governance costs.

Transaction fees are split between Solana validators and the Neon DAO Treasury, ensuring a balanced approach to funding and rewards.

Neon EVM Market Information and Stats📈

The NEON token is currently priced at $0.37 and holds a market cap of approximately $21.6 million. The Neon EVM network has seen significant activity, with over 5.5 million transactions processed to date. 

The network has surpassed 1.4 million blocks, indicating ongoing development and a vibrant transaction flow. Currently,  Neon EVM boasts 31,976 accounts and 1,353 tokens.

NeonPass: Bridging Solana and Neon EVM☀️

NeonPass is designed to streamline token transfers between Solana and Neon EVM, offering a seamless bridge between the two blockchains. Unlike traditional bridges that wrap tokens, NeonPass transforms SPL tokens from Solana into ERC-20 tokens, making them compatible with Neon EVM. 

This approach ensures efficient and direct transfers without creating new wrapped versions of tokens. To get started, you’ll need an EVM-compatible wallet and a Solana wallet, then visit NeonPass.live to connect and initiate transfers, simplifying cross-chain interactions.

Neon EVM Ecosystem🌎

At the heart of the Neon EVM ecosystem lies a robust infrastructure and a suite of essential tools designed to facilitate seamless integration and operation across blockchains:

Core Infrastructure

• Neon EVM: The central smart contract on Solana that processes Ethereum-like transactions with Ethereum rules, enabling smooth migration of dApps with minimal changes.

• Neon Proxy: Translates Ethereum transactions into a Solana-compatible format, ensuring seamless integration between Ethereum dApps and the Solana network.

• Neon DAO: A decentralized governance system powered by the NEON token, allowing token holders to vote on proposals and shape the future of the Neon EVM platform.

Essential Tools and Integrations🤝

• NeonScan: A block explorer offering transparency and detailed insights into transactions within the Neon ecosystem.

• NeonPass: Enables direct, bridgeless transfers of ERC-20 tokens between Ethereum and Solana.

• NeonFaucet: Provides test tokens for developers to build and test dApps within the Neon ecosystem.

• Integrations: Connects with oracles like Chainlink and Pyth, allowing dApps to access real-world data for enhanced functionality.

Neon EVM hosts an array of innovative projects and partnerships. Within this ecosystem, you'll find notable projects such as;

DeFi🏦

• Lumen: Decentralized lending and borrowing protocol

• lendOS: Decentralized, non-custodial protocol on the Neon EVM network that facilitates liquidity provision with lending and borrowing using Solana-based assets.

• Orca: A decentralized exchange (DEX) on the Solana blockchain, focusing on providing fast and efficient swaps between various cryptocurrency tokens.

• Moraswap: DEX enabling users to trade, earn, and win.

• Sobal: DEX that utilises Balancer's powerful and flexible smart contracts, providing an unparalleled DeFi experience for all.

• MYSO Finance: Trust-minimized DeFi protocol that allows users to borrow on Zero-Liquidation Loans.

• LeverFi: Full suite of DeFi solutions that combines on-chain spot swaps with lending and leveraged trading to deliver maximum capital efficiency for both institutional and retail traders.

• CurioDAO: Permissioned DEX where users can trade RWAs.

• Archly Finance: Archly works to empower any user on any chain to engage in seamless cross-chain experiences through our DEX and Rainbow Road platforms.

NFTs🖼️

• Hodooi: Multi-Chain NFT marketplace to Create, Buy, Sell and Re-Sell NFTs.

• Micro 3: Microservices platform designed for Web3 developers, offerring a suite of tools and services to simplify the creation and deployment of dApps

SocialFi💬

• Nomis: Multichain identity protocol that helps users build, manage, and leverage their onchain reputation and web3 projects to make onchain data-driven decisions.

• Jokerrace: A platform that facilitates community contests, allowing users to create, vote, and earn rewards on-chain.

GameFi🎮

• Versus X: Skill-based arcade sports gaming platform with player vs player (PvP) and player vs environment (PvE) modes.

These projects, alongside many others, showcase the versatility and potential of Neon EVM.

Getting Started With Neon EVM⚙️

To begin using Neon EVM, follow these steps:

1. Access Tools and Resources: Ensure you have Ethereum development tools like MetaMask, Hardhat, and Remixready for your development and deployment needs.

2. Port Your dApps: If you have existing Ethereum dApps, you can deploy them on Neon EVM with minimal changes. Refer to the Neon Quick Start Guide for detailed instructions on porting your dApps.

3. Set Up Your Environment: Create a Solana wallet to interact with Neon EVM. This wallet will be used to manage your transactions and deploy smart contracts.

4. Deploy Your Contracts: Use familiar Ethereum development environments to deploy your smart contracts on Neon EVM. Check the Neon Documentation for guidance on deployment.

5. Test and Iterate: Obtain test tokens using the Neon Faucet to test your dApps on Neon EVM and ensure everything functions as expected.

6. Engage with the community: Join the Neon EVM community on Discord to stay updated, seek support, and collaborate with other developers.

7. Earn points: Interact with dApps, remain active & refer people to earn points from Neon EVM. Full details here.

Closing The Story📚

Neon EVM represents a transformative leap in blockchain technology, harmonizing Ethereum’s rich ecosystem with Solana’s blazing speed. As blockchain technology continues to evolve, Neon EVM stands at the forefront, demonstrating how cross-chain innovations can drive efficiency, scalability, and enhanced user experiences. 

Embracing Neon EVM not only aligns with current technological advancements but also positions stakeholders to lead in the next era of decentralized applications.

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