What is Neon EVM (NEON): the first Ethereum Virtual Machine on Solana

The Ethereum Virtual Machine (EVM) is known to be a foundational element in blockchain technology. It enables secure and automated smart contract execution, underpins decentralized applications (DApps), and provides interoperability across many different crypto projects.

The technology's widespread adoption, security measures, and support for token standards like ERC-20 and ERC-721 contribute to its role in the Web3 ecosystem, particularly among decentralized finance (DeFi) protocols and non-fungible tokens (NFTs).

Neon EVM represents fresh evolution for EVM. The promise of Neon EVM lies in its ability to integrate EVM capabilities into the Solana (SOL) blockchain. This means developers can leverage the familiar EVM environment for deploying and executing smart contracts on Solana, combining the strengths of Ethereum's (ETH) ecosystem with the speed and scalability of Solana's blockchain. Meanwhile, the interoperability enabled through Neon EVM opens up new possibilities for DApps and supports the transfer of Ethereum's projects to the Solana network.

What is Ethereum Virtual Machine (EVM)?

To understand the impact of Neon EVM, let's start with the basics. The EVM lies at the core of Ethereum's functionality, serving as a decentralized runtime environment that executes smart contracts. In other words, it translates code into tangible actions, powering the development of a diverse range of DApps.

What does EVM-based mean?

The term 'EVM-based' refers to blockchain networks directly built using the EVM architecture, incorporating the EVM natively into their infrastructure. This direct integration provides one-to-one compatibility, allowing smart contracts written for Ethereum to execute on EVM-based networks. Ethereum-based projects can migrate effortlessly to these platforms, benefiting from the familiarity of the Ethereum environment.

What does EVM-compatible mean?

When a blockchain is labeled EVM-compatible, it means the chain follows EVM standards without being directly integrated with the core architecture. While EVM-based chains directly replicate Ethereum's Virtual Machine, EVM-compatible chains maintain compatibility with Ethereum's tooling and smart contract standards but might introduce additional features or optimizations.

Similar to EVM-based blockchains, developers benefit from a familiar environment, using Ethereum-compatible programming languages and tools, such as the widely familiar Solidity language. This compatibility also allows for interoperability, providing a smooth transition for projects between Ethereum and EVM-compatible blockchains.

What is Neon EVM?

Neon EVM is positioned as the first EVM on Solana, allowing developers to deploy EVM-compatible DApps on Solana with minimal reconfiguration. The platform enables DApps to process Ethereum-like transactions while embracing Solana's functionalities, including parallel execution of transactions and low gas fees.

With Neon EVM, developers can continue using familiar smart contract languages and Ethereum tools. This includes writing smart contracts in Solidity and Vyper, funding DApps with MetaMask, and deploying DApps on Solana through the Truffle environment, all while taking advantage of the efficiency of Solana transactions. This not only supports the transition for Ethereum developers but also potentially expands their reach by tapping into Solana's user base and accessing the platform's liquidity.

NEON, the native utility and governance token, plays a broad role, from enabling transactions to decentralized governance through Neon DAO.

How does Neon EVM differ from Ethereum's EVM?

One difference between Neon EVM and Ethereum's EVM lies in the execution of transactions. While Ethereum's EVM executes smart contracts sequentially to maintain consistent and predictable outcomes, Neon EVM uses the parallel execution capability of Solana to enable smart contracts to be processed concurrently.

To allow for parallel transaction processing, Neon EVM bundles transactions and sends them to the Solana mainnet. Under ideal conditions, Neon EVM achieves a throughput of 4,500 transactions per second (TPS), surpassing Ethereum's general limit of around 1,500 TPS.

How does Neon EVM work?

Neon EVM serves as a gateway for Ethereum-based applications to access the high transaction speeds and low transaction costs of Solana without changing its codebase. Here's an overview of the platform's key components and functionalities:

Neon Proxy

Neon Proxy allows for the migration of Ethereum DApps to the Solana blockchain. Acting as a bridge, Neon Proxy channels Ethereum-like transactions on the Solana network with minimal friction. This component packages Neon transactions, which represent Ethereum-style transactions, into Solana transactions. These packaged transactions are then processed on the Solana blockchain, leveraging its parallel execution capability and high throughput. Neon operators, responsible for running Neon Proxy servers, support this migration. They accept payments in NEON tokens and manage transactions within the Solana ecosystem using SOL.

NeonScan

NeonScan functions as both a block explorer and an analytics platform designed for users and developers. As a block explorer, NeonScan allows users to inspect and analyze transactions, blocks, and tokens associated with the Neon EVM on the Solana blockchain. This transparency provides users with a comprehensive view of the network's activity, allowing them to verify transactions, track token movements, and understand block information.

NeonPass

NeonPass is a tool that helps enable the transfer of ERC-20 tokens between the Solana and Neon EVM. This tool simplifies the cross-network cryptocurrency transfer process, allowing users to navigate the complexities with ease. Each transaction conducted through NeonPass incurs a gas fee, payable either in NEON or SOL tokens, depending on the originating network.

Neon Faucet

Neon Faucet is a service designed to help users obtain NEON and other ERC-20 test tokens. It's a resource for developers working within the Neon devnet, providing them with the necessary test tokens for application testing in a risk-free environment.

By using these tokens, Neon Faucet enhances the application development and testing processes on the Neon EVM platform before their deployment on the main network. Users looking to use Neon Faucet need to connect their crypto wallet to the service, which then allows them to access NEON and other ERC-20 test tokens for a thorough and secure testing experience.

Who created Neon EVM?

Neon EVM, developed by Neon Labs, operates under the oversight of the Neon Foundation for its development and governance. Marina Guryeva is the founder and CEO of Neon Labs and has been active in the blockchain space since 2015.

Guryeva previously served as the Director of CyberFund, an investment platform for blockchain startups. In 2019, she assumed the role of Director at Commun, a blockchain-based social network. In 2021, Guryeva founded Neon Labs with the aim of integrating Solana's scalability and low transaction fees into the Ethereum ecosystem.

NEON token: powering transactions and governance

The NEON token, native to the Neon EVM ecosystem, serves a dual role. It functions as a utility token, facilitating transactions on the Neon platform including transfers, DApp deployment, interactions within DApps, and more. Beyond transactions, NEON serves as a governance token, empowering holders to actively participate in decentralized decision-making processes through Neon DAO.

The final word

Neon EVM's mission within the Solana ecosystem is clear: to harness Solana's capabilities while providing Ethereum developers with a platform that feels like home. This integration brings forth a new era of possibilities for developers seeking high-performance blockchain solutions. As Neon EVM looks ahead on its roadmap, the promise of continued innovation underscores its commitment to shaping a multi-chain future.