Solana, the blockchain platform that claims to offer fast, scalable and low-cost transactions, has announced a new initiative to support the development and launch of projects on its network. The Solana Incubator, which is backed by some of the leading venture capital firms in the crypto space, aims to provide technical guidance, funding and mentorship to startups that want to build on Solana.
The incubator is part of Solana’s broader strategy to attract more developers and entrepreneurs to its ecosystem, which competes with other smart contract platforms such as Ethereum, Binance Smart Chain and Cardano. Solana claims that its network can process up to 50,000 transactions per second (TPS) at an average cost of $0.00025 per transaction, making it ideal for applications that require high throughput and low latency.
According to Solana’s website, the incubator will accept applications from projects that are focused on one of the following categories: DeFi (decentralized finance), NFTs (non-fungible tokens), Web3 (decentralized web applications), gaming, social media and metaverse. The incubator will also consider projects that are exploring new use cases for blockchain technology or that are leveraging Solana’s unique features such as its Proof of History (PoH) consensus mechanism, which enables faster synchronization and verification of transactions.
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Proof-of-history is a way of encoding the passage of time into the blockchain, by using a verifiable delay function (VDF) that produces a unique hash every fixed interval. This hash is then used as an input for the next hash, creating a chain of hashes that can be verified by anyone. By doing this, Solana creates a trustless and decentralized clock that can be used to order transactions and events on the network.
Proof-of-stake is a way of securing the network by requiring validators to stake some number of tokens to participate in the consensus process. Validators are randomly selected to propose blocks and vote on them, based on their stake weight and the PoH sequence. Validators earn rewards for producing and validating blocks and lose stake for behaving maliciously or going offline.
By combining PoH and PoS, Solana achieves a high throughput of up to 50,000 transactions per second, a low latency of 400 milliseconds, and a low fee of 0.00001 SOL per transaction. Solana also claims to be able to scale to millions of transactions per second in the future, by using techniques such as sharding, parallel processing, and compression.
The incubator will offer a range of benefits to the selected projects, including:
Up to $500,000 in seed funding from Solana’s strategic partners, such as Alameda Research, Multicoin Capital, Jump Capital and CMS Holdings.
Access to Solana’s core developers and engineers, who will provide technical support and feedback on the projects’ architecture and design. Mentorship from experienced entrepreneurs and investors in the crypto industry, who will share their insights and advice on product development, marketing, fundraising and scaling.
Exposure to Solana’s global community of users, developers and investors, who will help test, promote and adopt the projects’ products and services. Participation in exclusive events and workshops hosted by Solana and its partners, where the projects will have the opportunity to network with other innovators and influencers in the crypto space.
The incubator is currently accepting applications for its first cohort, which will run from January to March 2024. The deadline for submissions is December 15, 2023. The incubator plans to select up to 10 projects for each cohort, which will last for three months. The incubator expects to run four cohorts per year.
Solana’s announcement comes at a time when the platform is experiencing rapid growth and adoption. According to data from CoinGecko, Solana’s native token SOL has surged by over 10,000% since the beginning of 2021, reaching an all-time high of $214.96 on November 7, 2022. Solana’s market capitalization currently stands at over $60 billion, making it the fifth-largest cryptocurrency by market cap.
Solana’s popularity has also been driven by the launch of several successful projects on its network, such as Audius, a decentralized music streaming platform that has over 6 million monthly active users; Serum, a decentralized exchange that facilitates cross-chain trading of crypto assets; Star Atlas, a metaverse game that features NFTs and DeFi elements; and Degenerate Ape Academy, a collection of NFTs that sold out in eight minutes and generated over $96 million in sales.
Solana’s incubator is expected to further boost its ecosystem and attract more talent and innovation to its platform. By offering a comprehensive package of support and resources to aspiring founders, Solana hopes to foster a vibrant community of projects that can compete with rival chains and deliver value to users and investors alike. Solana is one of the most promising blockchain platforms in the market, with a growing ecosystem of applications and partners. It aims to provide a fast, secure, and scalable solution for decentralized applications that require high performance and low costs.
DCG says it was ‘blind-sided’ by NYAG as Fireblocks taps former New York regulator
DCG, the parent company of Grayscale Investments and CoinDesk, has released its third quarter shareholder letter, in which it addressed the recent lawsuit filed by the New York Attorney General (NYAG) against it and its affiliates. The letter, published on October 27, stated that DCG was “blind-sided” by the NYAG’s allegations, which accused the company of violating New York’s Martin Act by offering unregistered securities to investors and engaging in fraudulent conduct.
DCG claimed that it had cooperated fully with the NYAG’s investigation, which began in July 2019, and that it had provided “voluminous” information and documents to the regulator. DCG also said that it had “repeatedly” tried to engage in a dialogue with the NYAG to resolve any concerns, but that the regulator had “refused to engage in any meaningful discussions” and instead “chose to file a meritless lawsuit without warning or notice.”
DCG asserted that it had “acted in good faith and with transparency” throughout its operations, and that it had complied with all applicable laws and regulations. DCG also said that it had “always put the interests of its investors first” and that it had “provided them with valuable products and services that have helped them gain exposure to the digital asset space.”
DCG said that it was “confident” in its legal position and that it would “vigorously defend” itself against the NYAG’s claims. DCG also said that it would “continue to execute on its strategic vision” and that it was “excited about the future of the digital asset industry.”
DCG’s letter also highlighted its achievements in the third quarter, such as launching new products, expanding its global presence, growing its assets under management, and acquiring Luno, a leading digital asset platform in emerging markets. DCG also expressed its optimism about the long-term potential of digital assets, especially as more institutional investors enter the space.
Fireblocks taps former New York regulator to step up compliance.
Fireblocks, a platform that provides digital asset custody and transfer services, has hired a former New York State Department of Financial Services (NYDFS) official as its new chief compliance officer.
Michael Mosier, who served as the deputy superintendent and deputy counsel for financial crimes at NYDFS, will oversee Fireblocks’ global regulatory and compliance strategy and lead its engagement with regulators, law enforcement agencies, and industry groups.
Mosier brings over 20 years of experience in the public and private sectors, working on anti-money laundering (AML), counter-terrorism financing (CTF), sanctions, cybercrime, and other financial crime issues. He has also held senior positions at the U.S. Treasury Department, the Financial Crimes Enforcement Network (FinCEN), the White House National Security Council, and the Department of Justice.
In a press release, Fireblocks CEO Michael Shaulov said that Mosier’s appointment reflects the company’s commitment to “the highest standards of compliance and security” as it expands its global footprint and customer base.
“Michael is a recognized leader in the field of financial crime and compliance, and we are thrilled to have him join our team. His deep expertise and insights will be invaluable as we continue to navigate the complex and evolving regulatory landscape of the digital asset industry,” Shaulov said.
Mosier said that he was impressed by Fireblocks’ vision and technology, which he believes can “transform the way financial institutions interact with digital assets.”
“I look forward to working with the Fireblocks team to ensure that we operate with integrity and in compliance with applicable laws and regulations, while also fostering innovation and growth in this exciting space,” Mosier said.
Fireblocks was founded in 2018 and provides a secure platform for institutions to store, transfer, and issue digital assets. The company claims to have over 500 customers, including banks, exchanges, fintechs, and hedge funds, and to support over 400 tokens and cryptocurrencies. Fireblocks has raised $310 million in funding to date, valuing the company at $2 billion.