SuperEx丨Analysis: Can Solana Become Ethereum’s L2?

superex · November 4

#SuperEx #Solana #Ethereum

With the expansion of blockchain ecosystems in 2024, discussions around Ethereum Layer 2 (L2) solutions have gained momentum. As one of the most popular blockchains, Ethereum has driven the demand for L2 solutions to address scalability, high gas fees, and network congestion issues. This demand has led to the rise of various L2 solutions like Optimism, Arbitrum, and zkSync, which offload computation and data storage from the main chain. Meanwhile, Solana — a blockchain known for its high throughput and low transaction fees — has come under the spotlight as a potential alternative or even a Layer 2 for Ethereum. This article delves into the technical, economic, and ecosystem considerations in determining whether Solana could realistically fulfill the role of an Ethereum L2.

1. Background: Why Ethereum Needs L2 Solutions

Ethereum has solidified its position as a leading smart contract platform, supporting a wide range of decentralized applications (DApps) and services, particularly in DeFi and NFTs. However, this success has also led to issues with scalability and high transaction costs. By offloading some of the transaction load to L2 solutions that periodically anchor back to Ethereum’s Layer 1 (L1), Ethereum can alleviate some of this congestion. Typical L2 solutions include rollups (Optimistic and zk-rollups) and sidechains, which offer scalability while preserving security by relying on Ethereum’s base layer.

In contrast, Solana offers transaction speeds that consistently exceed 4,000 TPS (transactions per second) at very low fees, typically around $0.001 per transaction. Given these characteristics, some argue that Solana could serve as an L2 solution for Ethereum. However, this integration would not be without technical, economic, and structural complexities.

2. Solana’s Technical Edge: Can Its High-Performance Network Align with Ethereum L2 Standards?

Solana’s unique Proof of History (PoH) consensus mechanism is designed to maximize throughput and minimize latency. By introducing a historical record of events to the blockchain, PoH optimizes the transaction verification process, resulting in faster transaction times and lower costs. This makes Solana appealing as a high-throughput network capable of handling DeFi and NFT activities with minimal friction. However, L2 solutions for Ethereum are typically designed to be “stateless,” focusing on data compression and optimizing roll-up efficiency to avoid congestion on the L1 chain.

Solana’s PoH-based structure and high transaction speeds were built to operate as an independent chain, raising questions about how well it could integrate as an L2 without significant adjustments. A direct transition or compatibility with Ethereum’s L2 standards could require Solana to adopt features like roll-up verification and proof anchoring, which it currently lacks.

3. The Challenge of Solana’s Ecosystem Independence

One of Solana’s defining features is its independent ecosystem, which encompasses its native SOL token and uses Rust and C for smart contract programming — rather than Ethereum’s Ethereum Virtual Machine (EVM) and Solidity. L2 solutions like Optimism and Arbitrum are EVM-compatible, allowing developers to deploy Ethereum-based DApps directly to L2 without code modifications. Solana’s lack of EVM compatibility means that Ethereum developers would face a steep learning curve and potentially significant redevelopment costs to deploy on Solana.

For Solana to serve as an Ethereum L2, it would likely need to offer either EVM compatibility or an alternative mechanism for seamless interoperability. Some cross-chain solutions, such as Wormhole, have already enabled limited interoperability between Ethereum and Solana. However, establishing Solana as a full L2 would require enhanced compatibility, potentially by developing an EVM-compatible execution layer or more robust cross-chain protocols, both of which add complexity and security risks.

4. The Economic Model: Independent Chain vs. L2 Incentives

Ethereum L2s are built to integrate directly with Ethereum’s economic structure, using ETH for transaction fees and often incentivizing users through Ethereum-based rewards. In contrast, Solana has its native token, SOL, which powers transactions and staking on its network. If Solana were to operate as an L2 for Ethereum, there would need to be a consensus on whether SOL or ETH would be the primary medium for fees and incentives, as this could impact the tokenomics of both ecosystems.

Moreover, converting Solana into an Ethereum L2 could alter the incentives for users and developers in Solana’s ecosystem. Solana’s existing economic model is designed around its independent structure, and aligning it with Ethereum’s incentives would require rethinking how SOL is utilized and valued in an L2 context. This transition could reduce Solana’s autonomy, potentially affecting its unique ecosystem of applications and user engagement.

5. Feasibility of Cross-Chain Bridges and Integration

Cross-chain bridges like Wormhole have provided a basic level of interoperability between Solana and Ethereum, allowing users to transfer assets between chains. Although this approach does not equate to full L2 functionality, it could provide a foundation for closer integration. A full L2 implementation, however, would demand more than asset transfers: it would need data sharing, smart contract compatibility, and seamless user experiences across both chains.

Future developments in cross-chain technology or an EVM-compatible layer on Solana could offer solutions. However, the technical challenges and potential security risks involved in creating a trustless and efficient bridge remain high. Any vulnerabilities could expose both Ethereum and Solana to risks, as seen in the history of bridge exploits across various ecosystems.

6. User Perspective: Potential Benefits and Drawbacks

From the user perspective, a Solana integration as an Ethereum L2 would offer considerable advantages. Users could benefit from low transaction fees and fast speeds on Solana while maintaining access to Ethereum’s security and liquidity. This could also open doors for developers who seek an Ethereum-aligned experience with Solana’s speed and cost-efficiency.

However, current L2 solutions on Ethereum, such as roll-ups, still involve periodic delays in data anchoring and finality on L1. Solana’s advantage lies in its high-performance architecture, but if it becomes an L2, the dependency on Ethereum’s finality times and verification could counterbalance this speed. Ensuring that users get the expected low-cost, high-speed experience without sacrificing security or decentralization is critical.

Conclusion: Solana as Ethereum’s L2 — Possibility or Impracticality?

While Solana’s high throughput and cost-efficiency make it a strong candidate for Ethereum’s scaling needs, its independent ecosystem and unique technical architecture present notable integration challenges. Fully transitioning Solana to an Ethereum L2 status would require substantial adjustments in both ecosystems’ structures and economic models. The most realistic scenario might be for Solana to continue as a high-performance, interoperable blockchain that complements Ethereum rather than directly serving as its L2.

As cross-chain technologies evolve, Solana may become more interoperable with Ethereum, potentially forming a cooperative ecosystem where assets, liquidity, and applications flow seamlessly. The vision of a “multi-chain, value-sharing” future, where different blockchains contribute distinct strengths, could become reality — placing Solana as a critical pillar in Ethereum’s broader ecosystem without compromising its own unique identity.