Neon EVM (NEON): Scaling Ethereum DApps on Solana

In the rapidly evolving landscape of blockchain technology, Neon EVM emerges as a trailblazer, ingeniously integrating the scalability and liquidity of Solana with the robust infrastructure of Ethereum. This article will delve into the intricacies of Neon EVM, a platform that has revolutionized the deployment of Ethereum decentralized applications (DApps) by offering a seamless scaling solution on the Solana blockchain.

Key Takeaways:

• Neon EVM is an Ethereum virtual machine (EVM) built on the Solana blockchain. It supports Ethereum DApps without requiring any reconfiguration and accommodates widely-used smart contract languages, such as Solidity and Vyper.
• Neon EVM offers the ease of smart contract adaptation, the opportunity to be a first-mover on Solana and the scalability advantages of Solana’s low gas fees and high transaction speeds.
• Looking to trade NEON tokens? Bybit now offers the NEON/USDT Spot trading page. To celebrate this listing, Bybit is also holding two events for both new and existing users to win from a total prize pool of 75,000 USDT.

What Is the Neon EVM?

The Neon EVM is an Ethereum virtual machine (EVM) built on the Solana blockchain. A beacon of compatibility in the blockchain world, it supports Ethereum DApps without necessitating any reconfiguration and accommodates widely-used smart contract languages, such as Solidity and Vyper. This means developers can continue to work in familiar languages while leveraging the benefits of the Solana blockchain to scale Ethereum DApps. 

The platform's compatibility extends to popular Ethereum-based tools like MetaMask and Truffle, making the transition to Neon EVM even smoother for Ethereum developers.

The benefits of Neon EVM are manifold. It offers the ease of smart contract adaptation, the opportunity to be a first-mover on Solana and the scalability advantages of Solana's low gas fees and high transaction speeds. Moreover, it opens up access to Solana's burgeoning ecosystem, which includes SOL, native Solana assets (SPL tokens) and other bridged assets.

But Neon EVM isn't solely about technical prowess; it also places a strong emphasis on governance. The platform operates on a fee-based economy, with its utility token, NEON, playing a pivotal role in governance. Upon its mainnet launch, governance will be managed by a decentralized protocol known as Neon DAO, providing a transparent and user-friendly process for proposing and voting on protocol improvements.

History of Neon EVM

Neon EVM was brought to life by NeonLabs in Q2 2021. The primary objective of NeonLabs is to merge the scalability and cost-efficiency and high throughput of Solana with the expansive ecosystem of Ethereum DApps, developers and end users. This initiative is driven by the core values of NeonLabs, which include openness, transparency, innovation and diversity.

What Does Neon EVM Aim to Achieve?

Neon EVM aims to bridge the gap between the Ethereum and Solana ecosystems, leveraging the strengths of both to create a more efficient and scalable blockchain environment.

At its core, Neon EVM seeks to achieve its primary objective (described above) by providing a fully Ethereum-compatible environment on Solana, allowing Ethereum DApps to run seamlessly on the Solana blockchain without any need for reconfiguration.

Furthermore, Neon EVM aims to foster innovation and diversity in the blockchain space. By supporting familiar smart contract languages like Solidity and Vyper, as well as popular Ethereum-based tools like MetaMask and Truffle, Neon EVM makes it easier for Ethereum developers to transition to the Solana ecosystem — thus encouraging the development of new and innovative DApps.

How Does Neon EVM Work?

Neon EVM uniquely brings the high throughput, rapid block speeds and cost-effective gas prices of Solana to Ethereum contracts. It communicates directly with Solana nodes to execute transactions on the Solana blockchain. The service comprises three primary components: Neon EVM, Neon Proxy and Neon DAO, each of which play a crucial role within the Neon Ecosystem.

Neon EVM

The Neon EVM program is a smart contract deployed on the Solana blockchain. It receives Ethereum-style transactions and processes them on Solana, adhering to Ethereum's rules. These Ethereum transactions, directed toward the Neon EVM, are referred to as Neon Transactions, a subset of Ethereum's JSON-RPC Specification serving as inputs for targeted Neon clients.

Neon Proxy

Neon Proxy is a key component that enables the porting of Ethereum DApps to Neon with minimal reconfiguration. It packages a Neon transaction into a Solana transaction. Neon operators run these Neon Proxy servers, facilitating the smooth execution of Ethereum-like transactions on Solana. The operators accept payments in NEON and make payments within the Solana Ecosystem in SOL.

Neon DAO

Neon DAO assists the Neon Foundation by providing custodial services and guiding future research and development. It operates as a series of contracts deployed on Solana, offering a governance layer to control the functionality of Neon EVM. DAO participants use a web interface to allow the community (i.e., NEON token holders) to suggest and vote on proposals that will affect the functioning of the Neon EVM.

Features of Neon EVM

Neon EVM provides several tools and integrations, including NeonScan, NeonPass and Neon Faucet. 

NeonScan

NeonScan serves as a block explorer and analytics platform for the Neon EVM ecosystem. It allows users to examine and analyze Neon transactions within the Solana blockchain.

NeonScan users can track and investigate mainnet transactions, blocks and tokens associated with the Neon EVM. It provides a transparent view of the network's activity to verify transactions, monitor token movements and understand block information.

NeonPass

NeonPass is a tool that facilitates the transfer of ERC-20 tokens between Solana and Neon EVM. It's important to note that each transaction results in a gas fee, payable in either NEON or SOL tokens (depending upon the originating network). For instance, if you're transferring tokens from Neon EVM to Solana, you'll need to execute two transactions — one on the Neon EVM network (incurring a fee in NEON) and another on the Solana network (incurring a fee in SOL).

To successfully transfer ERC-20 tokens, the following steps must be taken.

Step 1: Ensure you have an account on the network from which you're transferring, with a sufficient balance of the token you wish to move. More specifically,

• If you're transferring from Neon EVM to Solana, your Neon EVM account should have an adequate balance of NEON and the specific token you're transferring in order to cover both the transfer and the gas fee.
• If you're transferring from Solana to Neon EVM, your Solana account should have an adequate balance of SOL and the specific token you're transferring in order to cover both the transfer and the gas fee.

Step 2: Utilize noncustodial browser-based wallet applications, such as MetaMask and Phantom, which are currently compatible with NeonPass.

Step 3: Access the NeonPass page via a browser that has your wallet applications installed.

Neon Faucet

Neon Faucet is a service designed to assist users in obtaining NEON or other ERC-20 test tokens. These tokens are primarily used for testing applications on the DevNet, Neon's development network.

By providing test tokens, Neon Faucet enables developers to test their applications in a risk-free environment before deploying them on the main network. This helps ensure the functionality and security of applications, contributing to a more robust and reliable Neon EVM ecosystem.

To use Neon Faucet, users need to connect their wallet to the service.

Neon EVM Road Map

Neon EVM first debuted in Q2 2021. It launched its pre-alpha Solana DevNet, which introduced Neon EVM proof-of-concept as well as Neon EVM stabilization. A year later, Neon EVM entered its alpha stage, in which it tested key DApps, passed a security audit and offered ERC-20 support. It was also during this stage that NeonPass and NeonScan were launched.

In Q2 2023, Neon EVM was production-ready with early DApps deployment. The Neon EVM team launched a closed beta, Neon EVMβ, on Jun 22, 2023. Neon EVMβ functions just like Neon EVM but with one key difference: the support for fee-free transactions. It rolled out its governance feature with the establishment of Neon DAO and integrated with The Graph, Pyth Network and Chainlink. In addition, it also whitelisted operators.

Moving forward, Neon EVM intends to grow the Neon ecosystem, introduce interoperability with Solana smart contracts, launch the Grants program and have a decentralized operators’ network in place by the end of 2023. Neon EVM then aims to feature full compatibility by 2024 and become one of the top industry ecosystem tools and services. 

NEON Tokenomics

NEON is the native token of Neon EVM. It primarily serves dual purposes, functioning as a utility token and a governance token.

As a utility token, NEON is used to facilitate transactions on Neon’s platform. This includes transfers, DApp deployment and interaction with DApps, mirroring the role ETH plays in the Ethereum ecosystem. 

When a user wishes to execute a transaction, they engage a Neon operator. This operator's role is twofold: they encapsulate the Neon transaction into a Solana transaction for iterative execution on a Solana cluster, and they bear the cost of each iteration of the Neon transaction. This system is designed with the user experience in mind, aiming to streamline the payment process for Neon transactions. 

For each iteration of a Neon transaction, the operator disburses SOL tokens to both the Solana validator and the Neon DAO Treasury. The payment made to the Neon DAO Treasury is recognized as the Neon EVM platform fee. Then, in order to compensate the operator for these costs, the Neon user remits payment in NEON tokens. This payment is comprehensive, encompassing the Solana validation fee, the Neon EVM platform fee and a commission for the operator's services.

As a governance token, NEON empowers its holders to participate in the decentralized community governance of the Neon DAO. NEON holders can propose changes to the Neon protocol and cast votes on proposals that impact the Neon protocol.

NEON Price Prediction

The NEON token made its debut on Jul 18, 2023, with an initial price of $0.180649. On the day it launched, it soared to its highest recorded value of $0.244256, only to experience a sharp decline to its lowest point of $0.118762 the following day (Jul 19, 2023).

Analysts from DigitalCoinPrice project a promising future for the NEON token. They forecast that the token's value will ascend to $0.27 by the close of 2023. Further growth is anticipated, with its price expected to double to $0.44 in 2025 and rise to $0.65 in 2028. By 2030, their analysts predict that the NEON token will surpass the $1 threshold, reaching a value of $1.29.

While these predictions paint an optimistic picture for the future of the NEON token, it's crucial to remember the inherently volatile nature of cryptocurrencies. This volatility can make it challenging to fully trust such forecasts. Therefore, potential investors are always advised to approach with caution, conducting thorough research and considering their financial situation and risk tolerance before making any investment decisions in the cryptocurrency market.

Where to Buy NEON

Looking to trade NEON tokens? Look no further — as Bybit has recently listed the NEON/USDT Spot trading pair on its platform. To get started, you’ll need to first create a Bybit account, fund it with cryptocurrency and navigate to the NEON/USDT Spot trading page.

To celebrate this listing, Bybit is also holding two exclusive events that give both new and existing users the opportunity to earn more NEON tokens.

The first event is exclusively for new users, who can deposit and share a 50,000 USDT prize pool. In order to be eligible, you’ll need to complete the following two steps, from now through Jul 31, 2023:

• Sign up for a Bybit account and complete identity verification, and
• Accumulate a deposit volume of at least 1,500 NEON, or deposit 100 USDT and buy NEON via your first trade. 

The first 1,000 new users to complete these two steps will each receive 50 USDT.

The second event is for existing users, who can deposit and share a 25,000 USDT prize pool. 

If you’re already an existing Bybit user before Jul 17, 2023, 10:00AM UTC, you can earn 10 USDT by depositing a minimum of 1,500 NEON, or depositing 100 USDT and buying NEON using your Bybit account.

Please note that rewards will be distributed on a first come, first served basis to 2,500 users.

Is NEON A Good Investment?

Neon EVM is a unique project that aims to bring the scalability and low transaction costs of Solana to the Ethereum ecosystem. It has a clear use case and solves a real problem in the blockchain space, which is a positive contribution. 

Furthermore, NEON, the native token of Neon EVM, serves as both a utility and governance token. It's used to pay for transactions and allows holders to participate in the governance of the platform. Price predictions also show that NEON’s value is likely to grow in the long term. 

However, the price of cryptocurrencies can be highly volatile and often be influenced by broader market conditions. Investors are advised to look at the overall trend in the cryptocurrency market when making investment decisions. 

Closing Thoughts

Neon EVM represents a significant advancement in the blockchain space, bringing together the strengths of two prominent ecosystems — Ethereum and Solana. By providing a fully Ethereum-compatible environment on Solana, Neon EVM allows Ethereum DApps to leverage the scalability, high throughput and low transaction costs of Solana, thereby creating a more efficient and user-friendly blockchain experience.

The project's commitment to openness, transparency, innovation and diversity — as well as its support for popular Ethereum-based tools and languages — positions it as a promising platform for developers and end users alike. With its utility and governance token, NEON, playing a pivotal role in the platform's operations and governance, Neon EVM also offers potential opportunities for investors.

However, as with any venture in the rapidly evolving and inherently volatile world of blockchain and cryptocurrencies, it's crucial to conduct thorough research and consider the associated risks. The future of Neon EVM, while promising, is subject to the broader trends and developments in the blockchain space.

#Bybit #TheCryptoArk