Neon EVM is an Ethereum-compatible solution built on the Solana blockchain. The platform allows developers to deploy Ethereum Dapps without doing any reconfiguration.
OVERVIEW OF NEON EVM
1. Neon Crypto opens ICO sale on CoinList
6 months ago, after a series of rumors about insolvency, CoinList is back with the launch of CyberConnect ICO (CYBER) on May 18, 2023. Of course, in the current general market bleak, the return of CoinList raises expectations of a market revival. Overwhelmingly, CoinList recently announced two more ICO projects, Neon Crypto and Archway.
Impressive performance of projects on CoinList. Source: chainbroker
The familiar question is whether projects like Neon or Archway can regain the luster that previous projects have achieved? Is there something special about these projects? Let’s learn more about each of these projects in the articles at BeInCrypto. In the framework of this article, take the time to understand more about Neon EVM and what it has been doing.
2. So what is Neon EVM?
Neon Crypto, or rather Neon EVM, is a solution developed by Neon Labs built on the Solana blockchain and fully compatible with the Ethereum virtual machine (EVM). Naturally, the purpose of these EVM solutions is to allow developers on Solana to deploy Dapps on Ethereum without any barriers or difficulties. In contrast, the Neon EVM also allows Solidity and Vyper-based Dapps to exploit Solana’s network benefits such as low fees, high transaction speeds, and parallel transaction execution.
We can simply understand why the Neon EVM was created:
Firstly, Solana has difficulty finding developers, while Ethereum Dapp creators have traditionally suffered from scalability limitations and high costs.
Second, there should be a technology that is “friendly” to developers and does not force them to rewrite contracts.
Based on these two reasons, Neon EVM builds an EVM that makes it easier for Ethereum-based applications to deploy on Solana. As such, with Neon EVM developers can:
Write applications in familiar languages Solidity and Vyper.
The implementation of Ethereum Dapps is done without any changes in the smart contract engines.
Neon EVM can be easily updated with new features on Ethereum.
3. Neon’s Ecosystem Components
Neon EVM is Solana’s solution for throughput, fast block speed, and low gas prices for contracts on Ethereum. Neon EVM directly interacts with Solana nodes to perform transactions on this network. It is composed of 3 main components including Neon EVM, Neon Proxy and Neon DAO.
Neon Ecosystem. Source: Neon
Neon EVM program: This is a smart contract on the Solana blockchain. It accepts transactions from Ethereum and processes them on Solana according to the rules of Ethereum. Transactions from Ethereum towards the Neon EVM are called Neon transactions. This is a subset of Ethereum’s JSON-RPC Specification that can be redirected to the Neon EVM to be used as input to Neon clients.
Neon Proxy: This component allows Ethereum-based Dapps to be migrated to Neon without too much reconfiguration. Neon Proxy bundles Neon transactions into Solana transactions. Proxies are provided as an intuitive, packaged solution for Operators. These Operators run Neon Proxy servers to help seamlessly execute Ethereum-like transactions on Solana.
Neon DAO: Provide custodial services for the Neon Foundation, support the fund for future research and development. The Neon DAO exists as a series of contracts deployed on Solana to provide a governance layer that controls the functionality of the Neon EVM.
4. How Neon EVM Works
Neon EVM is written in the Rust language and like Solana, it uses the BPF virtual machine. The management mechanism on Neon EVM is decentralized as follows:
A Neon EVM user (user) is any user with an account in Neon with a balance in NEON (later ETH/ERC-20 tokens).
A client is any application with an EVM (Solidity/Vyper…) bytecode contract uploaded to Neon on Solana.
An operator is any Solana account that pays for the execution of a Neon transaction with NEON tokens (later ETH/ERC-20 tokens) and receives payment for its work from the user.
Neon EVM works internally to provide parallel transaction computation.
Neon Web3 Proxy was created to mediate interactions between Ethereum users (users) and Neon EVM. This is a high-performance middleware layer that sits between the Dapp and the blockchain network. It is designed to speed up data retrieval from the blockchain by caching frequently accessed data. The workflow for Neon Web3 Proxy involves integrating it into the Dapp’s backend infrastructure and providing the API to external clients.
Berkeley Packet Filter (BPF) is a low-level programming language that allows developers to write custom code that the kernel can execute to filter network packets. Developers took advantage of this to create Neon EVM contracts in Solana, which were then loaded in the BPF virtual machine.
Once loaded, BPF programs can filter network packets in real time, providing developers with granular control over network traffic.
As a Solana contract, the Neon EVM identifies the transaction format in each batch received and extracts data from each transaction, including the original user information. Neon EVM also verifies the signature in each transaction, and if the signature is authentic, it will initiate the execution of the contract code on which the transaction is processed. Once the contract code has been successfully executed, the Neon EVM will record a new state.
State information for each account is stored in the Merkle Patricia tree. This allows for efficient and secure storage of account data, as well as easy access to specific pieces of information in the tree.
When a transaction is executed in the Neon EVM, the status of the affected accounts is updated according to the contract code being executed. The updated account state is then stored in the Merkle Patricia tree, reflecting the new state of the network.
5. So what makes Neon EVM different?
Performance: By using the Solana network, the Neon EVM is able to deliver impressive performance, with block times as low as 400 milliseconds and transaction throughputs up to 65,000 TPS. This makes it one of the fastest and most efficient EVM-compatible solutions available today. It can compute more than 2,000 transactions per second while keeping gas fees to a minimum (0.000015 SOL/tx).
Secure Validator: Neon EVM uses an innovative consensus mechanism called “Proof of Stake Sidechain”, which facilitates quick confirmation of transactions and ensures their immutability. The benefit of PoS sidechain is that it allows the creation of new features and functions that may not be possible on the main chain due to scalability limitations or other constraints.
Cross Compatibility: Developers can seamlessly migrate their existing Ethereum smart contracts to the Solana blockchain, using Solana’s advanced functionalities while retaining the model and programming engine. familiar Ethereum program.
Good Supportability: The platform is compatible with multiple versions of Solidity and provides support for widely adopted Ethereum standards, including ERC-20 and ERC-721. In addition, it provides some Solana-specific functionality, such as access to Solana accounts.
6. Neon EVM’s Development Roadmap
Neon Crypto’s Neon Labs team is in partnership discussions with some of the biggest names in the crypto space. In the future, Neon EVM will introduce user/developer tools like wallet, bridge, oracle, and indexer into Solana. In addition to Neon EVM, Neon Labs also intends to enter the rollup segment and eventually develop a set of solutions to support the integrated blockchain ecosystem.
NEON EVM CRYPTO TOKENOMICS
NEON is the native token of Neon EVM. It is used as a:
Utility Token: Payment method for user transactions (transfers, Dapp implementations, Dapp interactions, etc.) on the Neon platform, similar to how ETH is used on Ethereum.
Governance Token: Represents one vote in the Neon DAO for decentralized community governance.
Some properties of the NEON token include:
There is no rate of inflation or deflation.
Transaction fees will be allocated 50% to Solana Validator and 50% to Neon DAO Treasury.
NEON is an SPL token on Solana and, at the same time, a native token on Neon EVM (just like ETH on Ethereum).
Some information about NEON token
Ticker: NEON.
Type: Utility and Goverment token.
Token standard: SPL.
Token supply: 1,000,000,000 NEON.
Neon ICO token sale on CoinList: 50,000,000 NEON.
With a total supply of 1 billion NEON tokens, they are distributed proportionally as shown below:
EPILOGUE
The Neon EVM is a promising step forward in the continued growth and development of the Web3 ecosystem, providing a powerful and efficient solution for developers and users alike. With the presence of Neon EVM, the potential for decentralized applications and services to drive innovation and transformation across industries and communities is greater than ever.