Reporters raise concerns about the network’s crash-prone architecture. Many of these claims have been refuted by Solana Labs.
DeFi Safety, an independent DeFi rating agency, has ranked Solana the second-worst, according to its technical criteria.
According to DeFi Safety, Axie Infinity’s is the most dangerous play-to-earn platform. Ronin blockchain, a popular gaming platform, has been ranked the worst. In March 2022, Ronin was hack for $600,000,000.
Montreal-based agency has rated more than 240 Decentralized Finance (DeFi), protocols, and 15 blockchains.
According to DeFi Safety’s blog post, DeFi Safety’s Blockchain Reviews include five criteria: node count, diversity, supporting software, documentation as well as security testing and security.
Defi Safety explains that DeFi Safety doesn’t perform code audits. “We instead review the process and documentation behind the code. Audits are only one part.
Why is Solana rated so low?
DeFi Safety’s main reasons for such low ratings revolve around Solana’s poor infrastructure and frequent outages.
Another reason is the improper handling of archival information, poorly designed block-explorers and unaudited client software (software) that has less diversity than other blockchains.
DeFi Safety expressed concern over the insufficient details about the network’s node archive, which is the process of storing all data from a blockchain since its inception.
According to the rating firm, there is not clear documentation about node archival, except for a year-old Reddit Thread from Anatoly (co-founder of Solana). Austin Federa, Solana’s head of communications, stated that this is not necessary.
Federa stated that Solana doesn’t need knowledge back to genesis in order to validate a block.
DeFi Safety claims that Solana doesn’t offer enough node clients. Node clients are software that allows users to connect to a blockchain network to verify and execute transactions.
Solana currently offers one piece of software to its node operators. This has not been audited in 2019 claimed Safety. For example, Ethereum offers six consensus clients and seven execution clients .
Federa stated that only one node has been implemented. This is valid and accurate. “Solana Foundation is trying to diversify validator clientele.”
According the report Solana’s native block-explorer, Solscan leaves much to be desired especially when compared with that of Ethereum’s Etherscan.
Federa stated that “Several top-tier blockexplorers are being constructed by the community, the majority of which are under 18 months old,” Decrypt. “In this time, their UX has greatly improved and the functionality has been enhanced to meet the needs both of users and builders.”
The report also stated Solana validators had started censoring transactions. Solana Labs also denied this and called it synonym for miner extractible worth (MEV). MEV refers to any ancillary income that a miner can make beyond winning block rewards or earning gas fees through changing the order in transactions.
Federa said Decrypt that “the power in any network rests with the validators.” Federa said that DeFi Safety was one of several validators on the discord channel. The foundation does not have the power to ban transactions.
“We are in agreement with Solana about the fact that Solana doesn’t censor transactions. There was some discussion about it,” Nick Sheaf, co-author of DeFi Safety reported to Decrypt.
He concluded, “Solana is amazing and fast and beautiful, but man could things be better.”
What is the reliability of the report?
This report was based on DeFi Safety’s criteria.
Highly rated DeFi protocols include Uniswap (96%), Comppound Finance (93%) and Aave (94%). These DeFi protocols are known for their increased transparency and safety.
Terra’s Anchor Finance was also given a safer product rating (75%) than Solana’s, which fell because of the protocol’s architectural failure.
Defi Safety published a report on Badger DAO claiming it was 99% safe in September 2021. This report was later hacked and sold for $120 million December 2021.
The main reason for the deviation is because the Defi Safety Report is based upon the project’s smart contract. Badger Finance’s interface was instead exploited.
Solana’s price action
Solana (SOL), 9th largest cryptocurrency, has traded at $39.09 over the past 24 hours.
According to data from CoinMarketCap, SOL is still down 85% from its record high of $260.06 in November 2021. Many of the most popular cryptocurrencies have lost significant value since last year’s market crash.
According to data from DefiniLlama, Solana’s total value locked (TVL), is $3.77 billion. This represents an increase of 1.07% in 24 hours.