The Network State Podcast — Episode #20: Solana
Date: July 16, 2025
Host: Balaji Srinivasan (A)
Guests: Akshay (B), Lily (C), Audience (D, E)
Episode Overview
This episode features an in-depth conversation with Akshay and Lily, senior leaders at the Solana Foundation. They join Balaji to discuss Solana’s meteoric rise, its technological innovations, the growth of its developer ecosystem, and its ambitions as a foundational layer for decentralized finance (DeFi), physical infrastructure (DePIN), AI, and network states. The discussion spans Solana’s global strategy, real world integration, tokenized markets, and the challenges and opportunities of mainstream crypto adoption.
Major Discussion Points & Insights
1. The Rise of Solana and Key Milestones
- [00:00–01:55]
- Solana has rapidly become a top-three blockchain since its launch in 2020.
- Major achievements include:
- Surpassing Ethereum in DEX (Decentralized Exchange) activity.
- Growth to over 7,500 developers (2024).
- Corporate partnerships: Visa, PayPal, Google Cloud.
- Token extensions (confidential transfers, on-chain hooks).
- Technical upgrades like Fire Dancer validator for higher TPS (transactions per second).
- Initiatives in DePIN (Decentralized Physical Infrastructure Networks), DeSci (Decentralized Science), and AI agents.
“The thing that's nice about Solana is you can just blast events on chain. You don’t need bridges and backs and forts... just hold all the relevant state on chain.” — Balaji (A), [04:40]
2. DePIN: Decentralized Physical Infrastructure Networks
- [01:55–08:24]
- Concept: Using crypto incentives for participants to own/build physical networks (e.g., Hive Mapper, Helium).
- Hive Mapper Example:
- Drivers install dashboard cameras to crowdsource real-time mapping; participants are paid in network tokens.
- Alternative to venture capital—participants accept ownership and risk in building networks.
- Skepticism Addressed:
- Balaji raises concerns about mapping on-chain tokens to offline, real-world assets (e.g. gold).
- Lily and Akshay clarify that DePIN's value is in incentivizing and coordinating infrastructure providers, not tokenizing ownership of physical goods.
“One of the awesome things about crypto is it allows for a multiplicity of participants... you don’t need to join a company to work on the network.” — Akshay (B), [08:46]
3. The Value Proposition of Solana’s Architecture
- [04:40–05:40]
- Solana’s single-chain, high-throughput architecture simplifies user and developer experience—no need for layer 2s or bridges.
- Analogy: Upgrading from dial-up to broadband internet—one seamless high-bandwidth system vs. a patchwork of slow modems (L2s).
“It's like having a whole stack of 56k modems... that one's for chatting, that one's for watching videos... but that's just not the way it worked out.” — Lily (C), [05:02]
4. Community Building: Superteam & Network School
- [08:26–10:32]
- Superteam: Regional Solana communities worldwide (India, UK, Nigeria, Germany, etc.) for developers, marketers, founders.
- Philosophy: Earn your first crypto by building/participating, not buying—develop deep expertise, encourage contribution via hackathons, bounties, and grants.
- Collaboration with Network School for “Ignition Month”: Hackathons, physical meetups.
5. Pop-Up Crypto Cities: Forma
- [10:37–11:27]
- Forma: Temporary pop-up villages in pro-crypto jurisdictions (Argentina, Sri Lanka), integrating crypto into local economies via regulatory and business involvement.
- Vision: Show how crypto rails can bootstrap local economies.
6. Global Orientation and International Growth
- [11:27–12:05]
- Solana’s expansion has been internet-first and international, with the US being “the last spot,” reflecting the borderless, decentralized ethos.
7. Democratizing Capital Markets & Tokenization
- [12:07–16:17]
- Future vision: Companies “go public” on the Internet, lowering issuance/investor barriers globally.
- Example: Stablecoins make USD instantly accessible worldwide without heavy KYC hurdles.
- On-chain equities can democratize capital by opening up ownership to non-accredited investors and small businesses worldwide.
- Critical of current systems that restrict top investment opportunities to the wealthy.
“Taking equities on chain is not merely tokenizing it; it is changing the very fundamental nature... democratizing access to ownership and creating a cap table you can scale infinitely.” — Akshay (B), [13:15]
“To have access to the better investment assets, you already have to be rich… Part of this is enabling the supply of these things to come on chain... and broadening capital markets access.” — Lily (C), [14:03]
- Ownership vs. income:
“Actually, the solution should be something where it's universal basic ownership versus income…” — Akshay (B), [16:17]
8. AI & Crypto Integration
- [17:17–18:36]
- Trend: Increasing number of crypto-native AI agents for payments, e-commerce, and automation.
- Balaji and Lily note that each wave (e.g., GPU/Rander phase) comes with hype and partial realization—seeds eventually bear fruit, even after cyclical busts.
9. Crypto's Mobile App Challenges
- [18:36–19:48]
- Audience question about the lack of mobile-first crypto apps.
- Responses:
- Solana already has some of the best mobile apps (Phantom), but adoption is constrained by App Store regulations.
- Traditional fintech companies are likely to start integrating stablecoin capabilities.
- Crypto's evolution is both technical and cultural; most incumbents are slow to adapt.
“Apple is very small-c conservative… their culture is not a crypto culture.” — Balaji (A), [19:48]
Notable Quotes & Moments
-
Crypto as a Talent Magnet:
“One of the awesome things about crypto is it allows for a multiplicity of participants as opposed to just—you don’t need to join a company to work on the network.”
— Akshay, [08:46] -
Vision for Public Internet Capital Markets:
“In five years... if you’re taking your company public, you’re just going to say, I’m going public online. Where are you listing? On the Internet—what do you mean?”
— Akshay, [12:17] -
Ownership vs. Income:
“The solution should be something where it's universal basic ownership versus income, where you can have the ability for people to own assets at the push of a button.”
— Akshay, [16:17] -
Bridging to the Future:
“It’s a mindshare shift... a backend shift... a revenue model shift… so many different shifts at once, most people can’t flip that many parts of their experience.”
— Balaji, [19:48]
Key Timestamps
| Time | Segment | |------------|----------------------------------------------------------------------------------------| | 00:00–01:55| Solana’s trajectory and recent milestones | | 01:55–08:24| DePIN: Decentralized physical infrastructure, real-world mapping, incentive models | | 04:40–05:40| Solana’s technical & conceptual simplification for developers/users | | 08:26–10:32| Community: Superteam model, earning vs. buying crypto | | 10:37–11:27| Forma and the pop-up crypto city concept | | 12:07–16:17| Internet-based public capital markets and democratizing investment | | 17:17–18:36| AI + crypto: Current trends, agent-based automation | | 18:36–19:48| Mobile app adoption challenges, Apple’s conservatism, and crypto industry mindset shifts|
Final Thoughts
This episode demonstrates how Solana is positioning itself not only as a technological leader among blockchains, but also as an enabler for global, borderless economies and new public markets. The discussion highlights the intersection of crypto, physical infrastructure, and emerging applications in AI, making it an essential listen (or read) for anyone following the evolution of decentralized networks and network states.