I've heard that Solayer is about to launch its own SVM native cross-chain bridge. Honestly, given the constant hacking of cross-chain bridges and the widespread interconnectivity of blockchains, the veryI've heard that Solayer is about to launch its own SVM native cross-chain bridge. Honestly, given the constant hacking of cross-chain bridges and the widespread interconnectivity of blockchains, the very

Solayer launches SVM native cross-chain bridge, what are the highlights?

2025/08/11 11:30

I've heard that Solayer is about to launch its own SVM native cross-chain bridge. Honestly, given the constant hacking of cross-chain bridges and the widespread interconnectivity of blockchains, the very idea of a "cross-chain bridge" always makes one frown. So what's Solayer's approach this time? Here's my take:

1) Unlike traditional cross-chain bridges that rely on multi-signatures or relay nodes, Solana utilizes the native proof-of-stake mechanism of the Solana Virtual Machine (SVM). Simply put, it generates cryptographic proof of asset transfers directly at the Solana Virtual Machine level, rather than relying on the "honesty assumption" of external validators. Specifically, it utilizes a database-free architecture combined with pure PDA (Program Derived Address) logic. Traditional cross-chain bridges typically require a centralized database to record cross-chain states, making them a prime target for hackers. PDA, however, is Solana's unique deterministic address generation mechanism, where all states are stored directly on-chain and derived through program logic. To put it in perspective, this is like changing the combination to a safe from paper to a mathematical formula—even if a hacker obtains partial information, they cannot exploit it without the complete on-chain state.

Solayer introduces a Guardian mechanism, which operates statelessly—Guardians make no assumptions about historical state. Crucially, it establishes an instance bridge cap, limiting losses even in the event of security issues. To address this, the Fuzzland team implemented formal verification of the entire system, using mathematical methods to prove the logical correctness of the code, rather than relying solely on testing. Combined with on-chain replay protection, 24/7 anomaly monitoring, and real-time alerts, this provides a multi-layered defense, at least in theory.

3) Solana supports Cross-Chain Calls and composable Hooks. Using Hooks, developers can automatically trigger on-chain operations like arbitrage and liquidation after a transaction. Combining this composability with cross-chain functionality will open up a host of new possibilities. Of course, this isn't without its challenges. While the lack of a whitelisting requirement lowers the barrier to entry, allowing any token to be bridged theoretically, this undoubtedly presents security challenges and regulatory risks. Furthermore, established cross-chain bridges like Wormhole have long been deeply embedded in the Solana ecosystem, making it difficult for Solana to capture market share. While there are technological innovations, the cross-chain bridge industry ultimately relies on real-world verification of security.

Market Opportunity
SolanaVM Logo
SolanaVM Price(SVM)
$0.00029756
$0.00029756$0.00029756
+6.74%
USD
SolanaVM (SVM) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

FBI says North Korea’s Kimsuky APT uses malicious QR codes to spearphish U.S. entities

FBI says North Korea’s Kimsuky APT uses malicious QR codes to spearphish U.S. entities

The post FBI says North Korea’s Kimsuky APT uses malicious QR codes to spearphish U.S. entities appeared on BitcoinEthereumNews.com. The FBI says Kimsuky APT, a
Share
BitcoinEthereumNews2026/01/10 02:55
a16z targets AI and crypto after $15B fundraising year in 2025

a16z targets AI and crypto after $15B fundraising year in 2025

The post a16z targets AI and crypto after $15B fundraising year in 2025 appeared on BitcoinEthereumNews.com. Andreessen Horowitz (a16z) secured over $15 billion
Share
BitcoinEthereumNews2026/01/10 03:13
Stablecoin Market: Urgent Warning of a Zero-Sum Future

Stablecoin Market: Urgent Warning of a Zero-Sum Future

BitcoinWorld Stablecoin Market: Urgent Warning of a Zero-Sum Future A significant warning has emerged from financial giant JPMorgan, signaling a potentially challenging future for the stablecoin market. This isn’t just a minor blip; it’s a stark reminder that the booming world of digital assets faces a critical juncture, especially for those relying on the stability of stablecoins. JPMorgan’s recent research note suggests that unless the broader cryptocurrency market expands dramatically, stablecoin issuers are heading towards a fierce ‘zero-sum game’ scenario. The Alarming Truth About the Stablecoin Market What exactly does a ‘zero-sum game’ mean for the stablecoin market? Essentially, it implies that for one stablecoin to gain market share, another must lose it. This isn’t about overall growth where everyone benefits; it’s about a fixed pie where new entrants only succeed by taking a slice from existing players. JPMorgan analysts point to a rapidly increasing number of new stablecoin projects vying for attention. Tether recently announced its unregulated stablecoin, USAT. Hyperliquid plans to launch USDH, aiming to reduce its dependence on Circle’s USDC. Even traditional fintech powerhouses like Robinhood and Revolut are developing their own stablecoins. This surge of new issuers intensifies competition significantly. While the overall stablecoin market capitalization has reached an impressive $278 billion, its share of the total crypto market has remained stagnant, averaging below 8% since 2020. This stagnation, according to JPMorgan, is a key indicator of the brewing zero-sum challenge. Why is the Stablecoin Market Becoming So Crowded? The influx of new players into the stablecoin market isn’t accidental; it’s driven by various strategic motivations. Many projects aim to gain greater control over their financial infrastructure and reduce reliance on third-party stablecoins. For instance, Hyperliquid’s move to USDH is a clear example of a platform seeking self-sufficiency and potentially lower operational costs. Furthermore, established fintech firms like Robinhood and Revolut see stablecoins as a natural extension of their existing services. They can integrate these digital assets into their platforms, offering new functionalities and potentially attracting a broader user base. However, this expansion comes with a caveat: if the overall crypto market doesn’t grow proportionally, these new offerings will merely fragment the existing demand, making profitability and widespread adoption harder to achieve for all. The core challenge remains the limited expansion of the total crypto market relative to the growing supply of stablecoins. This dynamic creates an environment where innovation must go hand-in-hand with genuine market expansion, not just internal competition. Navigating the Competitive Stablecoin Market Landscape So, what does this intense competition mean for users and the broader crypto ecosystem? For one, it could lead to increased innovation as issuers strive to differentiate their offerings through better features, lower fees, or enhanced security. However, it also presents potential risks, particularly if some stablecoins fail to gain traction or face liquidity issues in a highly competitive environment. Users should exercise caution and conduct thorough due diligence when choosing stablecoins. For existing giants like USDC, the entry of new competitors means they must continue to innovate and maintain their market leadership. Regulatory clarity also plays a crucial role here. As more entities enter the space, the demand for clear, consistent regulations will only grow, potentially shaping the future landscape of the stablecoin market significantly. Ultimately, the long-term health of the stablecoin ecosystem hinges on the ability of the entire cryptocurrency market to attract new capital and users. Without this broader expansion, JPMorgan’s warning of a zero-sum game could become a stark reality. In conclusion, JPMorgan’s recent warning serves as a potent reminder of the escalating competition within the stablecoin market. While innovation and new entrants are exciting, the core challenge lies in the stagnant growth of the broader crypto market. For stablecoins to truly thrive beyond a zero-sum dynamic, a significant influx of new capital and users into the entire cryptocurrency ecosystem is paramount. The future success of these digital anchors depends on collective market expansion, not just internal rivalry. Frequently Asked Questions About the Stablecoin Market Q1: What is a ‘zero-sum game’ in the context of the stablecoin market? A1: A ‘zero-sum game’ means that for one stablecoin to gain market share, another stablecoin must lose an equivalent amount. It implies that the overall market size for stablecoins is not growing, forcing issuers to compete for a fixed pool of users and capital. Q2: Why is JPMorgan concerned about the stablecoin market? A2: JPMorgan is concerned because despite the stablecoin market’s growth in total value, its share of the overall crypto market capitalization has stagnated. With many new entrants, they believe competition will intensify, leading to a zero-sum dynamic unless the broader crypto market significantly expands. Q3: Which new stablecoin issuers are mentioned in the warning? A3: The warning highlights new entrants such as Tether’s unregulated stablecoin USAT, Hyperliquid’s planned USDH, and stablecoins being developed by fintech firms Robinhood and Revolut. Q4: What could be the implications for users of stablecoins? A4: For users, increased competition could lead to more innovative features, potentially lower fees, and better services. However, it also means a greater need for due diligence to assess the stability and reliability of various stablecoins, especially if some struggle in a crowded market. Q5: How can the stablecoin market avoid a zero-sum outcome? A5: According to JPMorgan, avoiding a zero-sum outcome requires significant expansion of the broader cryptocurrency market. This means attracting new capital and users into the entire crypto ecosystem, thereby growing the ‘pie’ rather than just re-dividing existing slices. Did JPMorgan’s warning about the stablecoin market catch your attention? Share this crucial insight with your network and join the conversation about the future of digital assets. Your thoughts and perspectives are invaluable! To learn more about the latest stablecoin market trends, explore our article on key developments shaping stablecoin market institutional adoption. This post Stablecoin Market: Urgent Warning of a Zero-Sum Future first appeared on BitcoinWorld.
Share
Coinstats2025/09/19 15:45