Rollups is an expansion technology for blockchain that solves the problem of blockchain transaction processing speed and network throughput. When the number of users of a blockchain increases , transaction fees (gas fees) become higher and higher, and the blockchain network is also under pressure to process a large number of transactions. Rollups reduces the burden on the main chain by "aggregating" multiple transactions into a single transaction, executing these transactions off-chain, and then submitting only the results of the aggregated transaction back to the main chain (Layer 1).
Rollups are mainly divided into two types: Optimistic Rollups and ZK-Rollups (zero-knowledge proof Rollups).
Currently, Ethereum is deploying Rollups . But Solana, known as the DePIN blockchain, has chosen another way - Network Extensions . Network extensions allow developers to create customized execution environments, including consensus mechanisms, transaction logic, dedicated storage, and isolated environments, and these will not compete with the main network's traffic , and will not cause liquidity or composability fragmentation - thus opening up new boundaries of block space dedicated to specific applications without destroying the core network.
Network expansion is seen as Solana’s sidechains or appchains, but Aryan Sheikhalian, head of research at CMT Digital, believes that comparing Solana network expansion to sidechains or appchains underestimates its true potential.
He believes that network expansion is not just a scaling strategy, but also a philosophy about how crypto infrastructure will operate in the future. "Solana's modular, deeply integrated L1 expansion mechanism preserves the security of validators, supports differentiated consensus mechanisms and transaction logic, and provides developers with a larger design space without having to launch new blockchains or be limited to limited Rollup solutions. This is of great significance to anyone who wants to build high-performance applications, from games to DePIN (distributed physical infrastructure network) to real-world financial applications." "In this way, Solana may even completely skip the current competition around Rollup technology."
How DePIN Benefits from Solana Network Extensions
In the field of DePIN (Distributed Physical Infrastructure Networks) and the Internet of Things (IoT), Network Extensions can bring significant optimization and innovation opportunities.
Data processing and integration
Through Network Extensions , data processing will be more efficient, which can provide efficient processing capabilities for the massive data streams generated by IoT devices , including fast data collection , real-time analysis, filtering and aggregation of data . Extensions allow the creation of specialized execution environments to process specific types of IoT data, such as sensor data, device status updates, etc., and can seamlessly integrate this information into the blockchain-based DePIN system.
Edge computing support
Using the customized execution environment of Network Extensions, the DePIN project can perform calculations close to the data source (i.e., the edge), reducing latency and improving response speed. This is very important for scenarios such as immersive virtual scenes in the metaverse and large-scale real-time online interactive games. By allocating dedicated resources to edge nodes, edge computing can more effectively manage computing tasks, ensure that critical operations are prioritized, and maintain the stability of the entire network.
Security and Privacy
The customizable execution environment of Network Extensions also brings security to the project. For example, the project party develops an execution environment that supports zero-knowledge proof or other privacy protection technologies, allowing users to verify transactions or status updates without exposing personal information.
Cross-platform interoperability
Through Network Extensions , the DePIN project leverages Solana’s high composability to make it easier for IoT devices produced by different manufacturers to communicate and collaborate.
Conclusion
Aryan Sheikhalian, head of research at CMT Digital, commented on Solana Network Extensions : As more and more developers try to build specialized execution environments, Solana's infrastructure may evolve into a network ecosystem consisting of multiple "purpose-oriented" layers but with a unified underlying layer. This model is in stark contrast to the "fragmentation" trend that is happening in other ecosystems. Unlike outsourcing the expansion tasks of networks such as Ethereum to independent Rollups or Appchains, Solana tightly integrates these customized capabilities on the core layer.
Broad developer adoption, rich toolchains, and actual deployments will determine the success of Network Extensions.
