Jito (JTO) is a blockchain that helps traders and validators increase MEV. Theoretically, Jito helps validators, traders, stakers, and others make money from the Solana (SOL) blockchain.
MEV can stand for “maximal extractable value,” “miner’s extractable value,” and “maximum extractable value.” Basically, means extracting the most value from blockchain transactions.
They claim, Jito Labs’ high-performance infrastructure maximizes the Solana Blockchain’s performance. Jito is the high-performance infrastructure.
Jito-Solana
They call Jito-Solana, the first third party MEV-boosted validator client for Solana (SOL).
Validators can make more from the trades they support by connecting to Jito’s Block Engine, Jito claims. Additionally, they claim validators can share MEV with stakers to attract more stakers. Plus, they claim Jito can reduce Solana Spam transactions.
One hope is that Jito can solve Solana’s Spam problem. Enormous amounts of Spam are slowing the Solana blockchain. For example, validators waste enormous amounts of time analyzing transactions to detect spam.
Solana has a spam problem because it is a continuous blockchain. Thus, Solana tries to transact all transactions. This slows the blockchain because Solana can treat all spam as actual transactions. Consequently, Solana can become too slow to process speculators’ trades.
They claim 43.31% of Solana Validators were running Jito-Solana on 11 December 2023. They claim there were 82 Jito Validators on 11 December 2023.
Jito for Traders
They claim Jito (JTO) can optimize MEV trading strategies. One way Jito increases MEV trading is to allow the sequential execution of transactions.
Jito Bundles supports trading through the Jito-Solana client. A Jito Mempool allows higher rates of transaction delivery. A mempool is a is a cryptocurrency node’s mechanism for storing information on unconfirmed transactions. It acts as a waiting room for transactions waiting for inclusion in blocks.
To elaborate, transactions sit in the mempool until somebody validates them. The hope is that validators will spot fraudulent transactions and spam and throw them out before they can wreak havoc. Ideally, the mempool could act as a spam filter for the Solana blockchain.
Mempools are vital for blockchain operation because they act as a buffer-zone that keeps unvalidated transactions out of the ecosystem. Theoretically, a mempool can reduce spam and keep fraudulent transactions out.
ShredStream increases Jito’s speed by receiving shreds directly. To explain, shreds are partial blocks. Hence, Jito increases speed by processing just part of a block through ShredStream.
Jito (JTO) for Stakers
The Jito Solana stake pool lets users stake Solana (SOL) tokens for a liquid stake pool token (the JitoSOL). Theoretically, JitoSol allows users to earn both staking and MEV rewards.
They claim several security firms have audited the stake pool program. An off-chain agent they call a Delegation Bot redistributes stakes across the Jito network and maximizes censorship resistance.
They claim a single-validator stake pool can provide liquid staking for all Solana validators. Jito claims the single-validator stake pool can provide liquidity with 80% less code. Theoretically, this can reduce risks from transactions.
What Value Does Jito (JTO) offer?
A Jitō was a territory steward in Medieval Japan. The shogun appointed Jitō to manage government properties. Jito Labs wants Jito’s validators to act as stewards for Solana (SOL) and transactions.
Solana (SOL) is popular. It was the sixth largest cryptocurrency, with a $69.89 Coin Price on 11 December 2023. Similarly, CoinMarketCap gave Solana a $29.791 billion Market Capitalization, a $39.466 billion Fully Diluted Market Cap, and a $3.279 billion 24-Hour Market Volume on 11 December 2023. They base those numbers on a 426.247 million SOL Circulating Supply and a 464.532 million SOL Total Supply.
Jito (JTO) is harvesting some value from Solana. For example, CoinMarketCap gave Jito a $2.97 Coin Price, a $342.857 million Market Capitalization, a $2.969 billion Fully Diluted Market Cap, and a $446.593 million 24-Hour Market on 11 December 2023. They base those numbers on a 115 million JTO Circulating Supply, a one billion JTO Total Supply.
There is a strong interest in Jito. Jito (JTO) was CoinMarketCap’s third-most trending cryptocurrency on 11 December 2023.
I think Jito (JTO), and its creator Jito Labs, try to solve an actual problem with Solana. Thus, Jito could be an interesting liquidity mining solution. However, I cannot see how Jito is a better speculative play than the Solana. I think Solana could become one of the most popular blockchains because many DeFi apps use it.
However, I think Jito is a specialized solution for a rather obscure problem. Thus, I think Jito’s value is small. I think Solana (SOL) could be a better choice for speculators than Jito.
*https://chainstack.com/what-is-mev-and-how-does-solana-solves-its-mev-issues/
*https://solana.com/ecosystem/jitolabs
*https://www.jito.wtf/validators/
*https://academy.binance.com/en/glossary/mempool
*https://www.jito.wtf/searchers/
*https://www.jito.wtf/stakers/
*https://spl.solana.com/stake-pool#security-audits
*https://spl.solana.com/single-pool
*https://www.jito.network/
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