1/ A thread explains why I’m so into @solana and @ProjectSerum

Based on An Ultimate Vision For Serum from @SBF_Alameda

2/ People often said the goal of DeFi is to replicate or even outperform the financial system on-chain. But how?

Let’s go to some rough calculations of how much value DeFi has could theoretically bring on-chain!

3/ What would NYSE + ARCA + … make if they were decentralized and charged 0.25bps/trade?

Daily trading volume is around $10T. If 20% of the volume moved to a decentralized venue it will be $500B/day

>> That would result in $3B/annual revenue, and valuation likely around $100B

4/ How about social media
#Twitter:
Valuation of $56B
#Facebook:
Valuation of $870B

Consider 30% of this could be move on-chain. It could be $300B value

5/ How about structured products?
Most of this is really easy to put on-chain
#Blackrock alone has $126b valuation
So this could hit $500b total

6/ How about credit cards?
VISA handles ~2k-50k TPS; scalable blockchains can handle this and has a $500b valuation
So we could have $1T valuation of credit card companies on-chain

…and this is just the start.

7/ The market is huge and the potential is limitless but what will DeFi and blockchain need to handle all of that value on-chain?

Basically
1) One million TPS
200k per shard for a single industry
2) $0.001 gas
Much more makes sending orders, posting updates, etc. too expensive

8/
3) Scaling with Moore’s law
Specifically, scaling total computational capability via parallelism
4) Decentralized and open
5) 100ms block times

9/ Which blockchains that exist today could get there?

Almost none.

200k transactions per second in a single shard blows out every blockchain right now.

But even more worrying, it blows out almost every blockchain’s long-term vision.

10/ Most chains, even most faster chains, aren’t planning to focus on further increasing their throughput; rather they’re resting on the laurels of being able to handle the current 100k user DeFi ecosystem cheaply.

11/ @solana meets these criteria. It can handle ~50k TPS right now; scales with Moore’s law; and has a detailed set of plans that could 10x over the next couple of years in throughput by optimizing various parts of the system. Its gas is cheap, too. https://twitter.com/solanians_/status/1385553465003315201

12/ Blockchain is the necessary base but how DeFi can scale? People have to choose to use that blockchain. Lots of people.

Once it grows to 10m users, the rest can be self-propelled.

#Ethereum has this. Currently, no other chains do.

13/But @ProjectSerum presents a path towards adoption. Already, it has the world’s most powerful fully on-chain DEX, and the ecosystem is growing quickly.

The structure of @Serum is also unique and can bring multiple benefits to the ecosystem. https://twitter.com/solanians_/status/1373134520363347973

14/ The whole ecosystem is growing, and it is growing fast. https://twitter.com/solanians_/status/1382297882049400834

15/ With all the hard work behind the scenes, support and products and liquidity, and funds. The coalition of groups building on Serum is massive in scope. https://twitter.com/solanians_/status/1385812736043470850

16/ Surely there are still some drawbacks at the moment, UI/UX can be improved more. But the vision of Solana and what they were and doing is what makes me into @solana so much and looking forward to the future ahead.

#SOL #SOLSZN #SOLSUMMER