While the market is still debating the performance bottlenecks of Layer 1, Solayer's InfiniSVM has already provided the answer with measured data - achieving millions of TPS, unlimited scalability, and sub-second latency through customized hardware acceleration. This not only redefines the technical boundaries of public chains but also gives institutional applications of on-chain finance the technical foundation to take off for the first time. The logic behind this is simple: while Ethereum is still entangled in sharding technology and Solana's conventional architecture is constrained by physical limits, Solayer chose to directly reconstruct the underlying virtual machine with hardware acceleration. Could this dimensionality reduction strike become the standard for the next generation of public chains?
Hardware acceleration: from laboratory to the wild growth of millions of TPS
The core breakthrough of InfiniSVM lies in offloading compute-intensive tasks to FPGA (Field Programmable Gate Array) and ASIC (Application-Specific Integrated Circuit) hardware layers. This design enhances smart contract execution efficiency by over 50 times, with measured network throughput stabilizing above 1.2 million TPS and latency controlled within 300 milliseconds—this figure is already close to the response speed of the NASDAQ exchange. In contrast, Solana's mainnet peak TPS is around 4000, and Ethereum L2 generally hovers between 2000-5000 TPS. The performance advantage of InfiniSVM is not incremental improvement, but an order of magnitude crushing.
More critically, its horizontal scalability. Through dynamic sharding technology and hardware resource pooling, InfiniSVM can automatically allocate computing resources based on demand. In stress tests on the testnet, as the node scale expanded from 100 to 10,000, network performance maintained linear growth, with gas fee fluctuations less than 3%. This feature gives Solayer a natural advantage when handling high-frequency trading, real-time derivatives clearing, and paves the technical road for large-scale on-chain RWA assets.
Why do institutions need to reassess Solayer?
The dilemma of traditional DeFi is that when daily trading volume exceeds $10 billion, on-chain congestion and slippage issues can amplify exponentially. In 2023, Solana's Jupiter trading aggregator experienced significant user losses exceeding 15% of expected returns due to instantaneous traffic. InfiniSVM's hardware layer natively supports transaction parallel processing, and in simulated tests, even when faced with three times the daily trading volume of Uniswap, its success rate for capturing arbitrage opportunities remains above 98.7%.
This stability is attracting the attention of traditional finance. The Solayer team revealed that two top market makers are testing dark pool protocols based on InfiniSVM, with their key requirement being sub-millisecond order matching and zero MEV (Miner Extractable Value) characteristics. More intriguingly, the payment solution of the Emerald Card—this entity/virtual card deeply integrated with InfiniSVM—settles each transaction in real-time as on-chain liquidity certificates, allowing users to earn 0.5%-3% LAYER token rewards upon consumption. In pilot programs in Brazil and Southeast Asia, the average settlement time of the Emerald Card is only 0.4 seconds, while the median for Visa's network is 1.2 seconds.
The value capture logic of the LAYER token
As the governance and utility token of the Solayer ecosystem, LAYER's design is clearly pragmatic. Its tokenomics includes two key mechanisms: first, 40% of protocol revenue is used for buyback and destruction; during the testnet phase, tokens equivalent to 1.7% of the circulation have already been destroyed; second, stakers can earn part of the computing power leasing revenue from InfiniSVM hardware clusters. This design gives LAYER both deflationary properties and cash flow support, contrasting sharply with public chain tokens that rely solely on staking inflation.
From a valuation perspective, Solayer currently has an FDV (Fully Diluted Valuation) of about $800 million, which is only 1/4 of the $30-50 billion valuation range of top LST protocols in the Solana ecosystem. However, considering that its technical solution can directly serve the $200 billion on-chain derivatives market, as well as the potential entry into the $40 trillion global payment market with the Emerald Card, this valuation clearly has enough margin of safety. When the InfiniSVM mainnet fully opens in Q4 2024, the real value reassessment may just be beginning.
When AI meets hardware-accelerated chains
InfiniSVM's ambition goes beyond finance. Its hardware layer's optimization for matrix operations reduces the gas cost of running AI inference tasks by 80% compared to general-purpose virtual machines. Teams have already deployed distributed AI prediction markets on the testnet, reducing the inference time of a single model from 12 seconds on Ethereum L2 to 1.8 seconds. More notably, Solayer's collaboration with the modular blockchain Celestia—by breaking down AI training tasks into InfiniSVM's parallel computing units, training efficiency in certain specific scenarios has increased by 20 times.
These use cases may explain why Solayer's development activity index surged by 400% in the past three months. While other projects are still depicting the vision of 'blockchain + AI' in PPTs, InfiniSVM has already provided quantifiable solutions with hardware accelerators. In today's deep-water competition among public chains, perhaps the real breakthroughs have never been about incremental optimization, but about revolutionary changes in underlying architecture like Solayer, making millions of TPS the starting point of infrastructure rather than the endpoint.