A Rush of Activity on Solana Blockchain Raises Concerns
A rush of user activity on the Solana blockchain network is causing challenges and prompting stakeholders to consider major changes. The increased activity includes a significant rise in DeFi (decentralized finance) transactions, which has attracted malicious actors seeking to exploit the network’s low fees. In response to this concern, Jito Labs, the Solana infrastructure developer, announced the shutdown of its mempool service due to repeated bot attacks during periods of high network activity.
Addressing Malicious Attacks on Solana Network
Jito Labs suspended its mempool functionality after it was manipulated to enable bot attacks on Solana users. While Solana itself doesn’t have a native mempool, Jito’s Block Engine created one to allow users to pursue “maximal extractable value” (MEV) on the network. However, negative MEV became a common occurrence during periods of heightened trading activity on Solana.
In a sandwich attack, traders use sophisticated bots to execute transactions before and after a targeted trade. This manipulation artificially impacts the price of an asset being traded by the victim and allows the attacker to profit from the price difference. Due to Solana’s low fees, sandwich attacks have become rampant and affect both large and small traders.
Jito Labs Shuts Down Mempool Functionality
Jito Labs made the decision to suspend its mempool functionality in order to improve the user experience on Solana. The network is currently struggling with congestion caused by thousands of newly minted meme coins and NFTs (non-fungible tokens) being traded daily. This congestion makes operations difficult for projects like Drip, which mints hundreds of thousands of NFTs for its users every day.
Solana co-founder Anatoly Yakovenko acknowledged the network’s issues and polled Twitter followers on whether to “aggressively” increase block space, even if it meant a higher risk of network outage. The majority voted against the proposal, prioritizing network stability over congestion management.
Overwhelming Traffic from Meme Coins
The congestion on Solana is primarily caused by meme coins, although NFTs also contribute to the traffic. Users on the blockchain have been launching a record number of new meme tokens each day, likely inspired by the success of Solana meme coins like Dogwifhat and Bonk. On Sunday, there were 8,630 new tokens created using the SPL token standard, setting an all-time daily record. The following day, that number increased to 9,690 new SPL tokens.
Hot Take: Balancing Network Stability and Congestion
The surge in user activity on the Solana blockchain has led to chain congestion and an increase in malicious attacks. While efforts are being made to address these challenges, there is a need to strike a balance between network stability and managing congestion:
- Jito Labs suspended its mempool functionality after it was repeatedly manipulated for bot attacks during high network activity.
- Solana co-founder Anatoly Yakovenko considered increasing block space but faced resistance due to concerns about network stability.
- Congestion on Solana is primarily caused by meme coins, with users launching a record number of new tokens each day.
As Solana continues to grow in popularity and attract more users, finding sustainable solutions to congestion and security challenges will be crucial for maintaining a smooth user experience on the network.
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