The Web3 developer and investor Jump Crypto announced this Tuesday a new partnership with Solana (SOL).
This news comes after a long period of turmoil for Solana investors. The SOL Token has seen an increasing decrease in value due to outages and even hacking episodes which caused a loss of over $5 million dollars for SOL investors.
In an initiative named “Firedancer”, Jump Crypto will be assisting Solana in developing a new open source validator client, which will function as a security software for Solana’s blockchain.
These validator clients have a critical role in blockchain proof-of-stake (PoS). These types of software maximize the chances of the blockchain being able to defend against potential hackers.
Jump Crypto will introduce significant updates to Solana’s open-source code network. The Solana / Jump crypto partnership will also introduce a second open source validator to be developed in C++ programming language.
How will this news affect Solana’s value?
This partnership’s main objective is to propel the cryptocurrency’s scalability. Solana went through several downfalls in 2022, and the introduction of a safer and more secure blockchain promises to keep Solana more stable.
Jump Crypto also stated that they will propose significant updates to Solana’s central code.
In a statement, Solana Foundation’s executive director Dan Albert celebrated the news.
“Jump has unparalleled experience with over 20 years of scaling networks and building highly performant software systems,” Dan Albert, said. “Their contributions to the Solana Network will improve mission-critical systems, helping the network scale to billions of users.”
Solana investors are hoping that the news of a partnership with Jump Crypto in order to update and transform the project into a safer and more secure blockchain will aid in helping the Token pick itself up.
Solana’s Security Issues
Solana was once an up-and-coming blockchain network. However, after major outages in June which rendered the blockchain unusable for hours, and a hacking incident that cost over $5 million dollars across several users’ wallets, Solana’s value has dropped significantly over the past couple of weeks.
Perhaps with good reason, the token began to be perceived as “unsafe”, and the lack of proper security measurements for its holders made investors begin to doubt the token’s ability to survive.
This uncertainty reflects in the charts. SOL token is down 75% this year. Meanwhile, Solana’s blockchain competitors are looking to be on the break of a bullish market.
Jump Crypto has a History of Working in Blockchains
Jump Crypto has dealt with security issues regarding blockchains in the past.
Earlier this year, the investment company was working with Wormhole when the blockchain got its system hacked.
To cover the hacking episode losses, Jump Crypto had to spend over $320 million dollars.
To make matters worse, in October, Jump Crypto indexed Wormhole into the Terra blockchain, which caused Terra’s LUNA token to plummet.
Now Jump Crypto will look to regain market confidence by updating Solana’s blockchain security. If successful, this partnership will be able to pick up Solana’s market value and at the same time raise Jump Crypto’s credibility in the crypto market.
