Coinbase makes a lot from Solana trades these days. But the surge in demand also causes some headaches to America’s biggest crypto exchange.
Coinbase receives more Solana Send and Receive requests “than ever before,” An employee said that dusting attacks are becoming more frequent, leading Coinbase’s account to be delayed longer than normal. Solana has an interesting dilemma: The blockchain is very fast, but the places that have to process the data can’t keep up.
Coinbase’s struggle is with data indexing, which is the process of taking blockchain transaction data — which comes as a jumble of bits — and putting it in a format that things like crypto exchanges can read.
This can become expensive when a blockchain generates as much information as Solana.
Dan Smith, Blockworks Research’s data leader, cited an Eigen Labs experiment to illustrate the data capacity of EigenDA. Eigen Labs published every block for 19 blockchains in a time period during September. This represented roughly 20 terabytes, of which 97% was from Solana. Coinbase indexers are currently “can’t keep up” With Solana’s demand, a Protocol Specialist at the Exchange wrote on X.
The dusting of the house has become a nuisance. “constant” On Coinbase, protocol specialist writes.
The term dusting is used to describe the practice of sending small amounts to multiple wallets in order to trace them. While writing this article I was moving SOL on Coinbase and received two dust transactions. It’s a good thing. “dust” It may seem trivial, but the data it generates can be a major strain on Coinbase.
The indexing problems of Solana go beyond volume.
Solana indexing can be difficult in comparison to Ethereum, as the latter lacks an interface that is uniform for the smart contracts (computer programs) which run on the Blockchain.
“[W]hen you look at your transactions across many of these [Solana] programs, the data is just a jumble of bytes which are not human readable,” Tristan Frizza said.
There is currently no way for Dune or other data platforms to understand what Solana transactions actually do.
Helius CEO Mert mumtaz announced that the Solana platform would be releasing three new features within the next two month, which he estimates could resolve 80% of Solana’s issues. “read layer issues.”
But exchanges have to continue indexing a blockchain which is experiencing record-breaking demand until then.
Coinbase: it is time to establish the Battle Stations
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