Understanding Solana's Ambition Again from BreakPoint

Author: @ZKwifgut

This is a small essay on observations and thoughts from BreakPoint, assisting investment research. The following are specific viewpoints:

1. PayFi and DeFi are the two legs of Solana's vast crypto ecosystem, and so far, no other ecosystem has such a clear strategy: building an On-chain Economy through DeFi and moving towards Mass-adoption through PayFi.

2. A summary of PayFi-related projects at the BP site shows the density and quality:

• Stablecoins and payments: PayPal PYUSD (merchandise available on-site); SOL debit card by Sanctum; Fusewallet virtual Visa card; Kast bank card; MakerDAO bridging stablecoins to Solana via Wormhole.
• E-commerce: Shopping with stablecoins through Shopify Blinks, accepting Solana stablecoin payments for booking hotels based on Helio Pay/Solana Pa.
• Payment hardware: Solana official second-generation phone Seeker; smartwatch Showtime.

1. Solana's Consumer Crypto sector is already a group effort, with construction reserves far exceeding other public chains:

• Payment-friendly blockchain: high throughput, low gas, fast settlement, and further performance improvements brought by the Firedancer upgrade.
• Payment infrastructure: stablecoins, mobile wallets, on/off-ramp, Solana Pay, Web2 payment integration (bank cards, payment software like PayPal), Cex/Dex, Blinks, payment hardware.
• Payment scenarios: online shopping, social e-commerce, offline events, gaming.
• Supply side of goods: consumer-grade hardware like phones, SIM cards, watches, exhibition tickets, merchandise, e-commerce products (integrated with Shopify), gaming items.

1. Compared to Ethereum's "asset chain" positioning, Solana is solidifying its "payment chain" positioning, currently seen as the optimal blockchain for consumer retail and payment products.

2. "Payment scenarios" and "supply side of goods" are more challenging than infrastructure development, requiring investment in BD resources and workload, such as integrating e-commerce and payment mediums, along with extremely complex supply chain management, like manufacturing phones. All these businesses require significant management complexity and resource investment.

3. The dirty and labor-intensive work mentioned above is far from "issuing assets" and "liquidity," so it's normal for some people to be indifferent to PayFi. What is happening in the Solana ecosystem has a touch of "long-termism."

4. Solana represents a type of L1------corporate blockchain. The governance model is a foundation, the organizational capability model is corporate, with a clear vision, distinct values, focused resources, clear division of labor, and accountability for results.

5. Solana's organizational capability is probably the top in the industry, with only top-tier exchanges being able to compete (to this day, Solana's products still carry the flavor of FTX). From strategic formulation, ecosystem expansion, community building, resource investment, internal collaboration, to the production of promotional videos and creative levels, slogans, promotional rhythms, and BreakPoint offline events, all exhibit the qualities of a top tech company.

6. The term "Solana Killer" is becoming popular in the market, while "Ethereum Killer" is rarely mentioned, as Solana and Ethereum are no longer comparable species. Solana can now move away from Ethereum as a reference frame, becoming a reference frame itself.

7. SVM is beginning to show its potential, with its advanced nature being uncovered like a hidden treasure. We will see more projects emerging around SVM, which are worth paying attention to.

8. Memecoins are not part of Solana's main strategy; in my view, they are merely a fun and investment game for ecosystem users. Memes have been chosen by funds to become Solana's business card, and the chapter of Solana's regular army approach may just be beginning.

9. The community atmosphere of Solana is very engaging—interesting, passionate, smart, and direct. Good products will stand out, and it is the community that respects user experience the most.

10. How to view "the market has nothing new"? We must accept that there may not be any on-chain innovations at the level of DeFi anymore. We must accept that the upcoming on-chain innovations will be micro-innovations and model innovations. Consumer Crypto no longer has any frills; it relies entirely on resources and execution capability.

Investment Strategy Thoughts (NFA):

• Ethereum is irreplaceable. Therefore, the more something resembles Ethereum, the less it is worth investing in (for example, most L2s overlapping with Ethereum's ecosystem), and it is better to allocate to Ethereum.
• The more something resembles Solana, the more it is worth considering for investment, as the success factors of Solana are replicable, even if difficult. It may be time to invest in the next Solana Killer.
• Solana's consensus has moved towards global consensus. Although non-consensus profit opportunities have passed, global consensus ensures a more solid foundation for Solana, capable of supporting larger funds and positions.
• Memecoins have transcended emotions and culture, being a product of the ideology of this cycle, and ideology has always been on par with technological innovation in any historical period. Investors and institutions that understand this will know how to view Memecoins correctly.
• Pay attention to Solana's unlocks in 2024/2025.