Network Extensions: Beyond Raw Performance

Solana has earned a reputation for speed and scalability, delivering the performance needed for a growing ecosystem of decentralized applications. Yet, as these dApps become more sophisticated, raw performance alone isn’t sufficient to solve every challenge. Developers often need fine-tuned control over how transactions run, data is stored, and security is enforced.

Enter Network Extensions. Rather than building separate blockchains or sidechains, network extensions provide specialized, customizable “lanes” within Solana’s main network. You essentially own a dedicated highway lane free of traffic but are still connected to the larger road system.

How Network Extensions work.

What are Network Extensions?

At their core, network extensions are customized execution environments that sit on top of Solana. They remain deeply integrated with Solana’s validator set, benefiting from the same security and composability. Unlike stock Solana dApps that share the same execution layer, a Network Extension can define:

  • Custom rules: From consensus tweaks to specialized transaction logic.
  • Dedicated resources: Greater throughput or storage tailored to specific workloads.
  • Isolation: A sandboxed environment that won’t be hindered by mainnet congestion or hinder mainnet itself.

You can tailor Solana’s infrastructure to your needs while preserving the network’s reliability.

Why Network Extensions Matter

Addressing Specialized Needs

While Solana is highly performant, one-size-fits-all isn’t ideal for every project. For instance:

  • High frequency trading (HFT) needs ultra-fast processing and deterministic execution.
  • Privacy focused apps rely on sophisticated encryption and data handling to protect sensitive user information.
  • Data-heavy workloads (such as AI training pipelines) require efficient storage, verification, and cost-effective scaling.

Each of these scenarios can benefit from dedicated resources and customizable parameters that a standard L1 environment may not fully provide.

Innovate Securely

Network extensions allow teams to experiment in a safer environment. You can prototype alternative consensus logic or economic models without risking mainnet congestion. Unlike spinning up a new chain where you’d have to bootstrap your own validators and ecosystem, network extensions inherit Solana’s existing qualities, i.e. liquidity, security, and composability.

This is the main differentiating factor between sidechains and network extensions: sidechains often have their own security models, validator sets, and tokens, while network extensions remain directly anchored to Solana’s core validator set and security to preserve the trustless, unified network effect.

Features and Existing Network Extensions

There are various capabilities from network extensions, so let’s dive into some examples and explore how teams are leveraging them:

Examples covered in this blog.

Advanced Data Processing

Data-heavy dApps need reliable ways to process and store large datasets without overloading the mainnet. A network extension can offload both computational tasks and large-scale storage to specialized environments, then verify those off-chain actions on-chain.

  • Compression and off-chain storage: Avoid storing bulk data on-chain by archiving it in the historical ledger or off-chain for lower costs, with verifiable checkpoints or proofs on the main chain.
  • Distributed data scraping: Network extensions enable residential nodes to harness unused bandwidth, contributing to decentralized data collection and aggregation for applications like AI training.

Example: Grass Network

Grass Network is a decentralized platform that rewards users for sharing unused bandwidth to collect and structure public web data for AI training.

The volume of transactions processed by Grass per second is too high to be feasibly ordered and executed on the Solana mainnet, thus operating as a sovereign data rollup becomes the most practical solution for its operations.

  • Users earn rewards for decentralized bandwidth sharing by running lightweight nodes that scrape and relay public web data.
  • Grass uses routers and validators to relay, batch, and verify scraped web data, generating zero-knowledge proofs (ZKPs) that attest to data provenance and accuracy, which are then checkpointed on-chain.

Since most data scraping happens off-chain, the main network stays uncluttered. The on-chain components simply confirm authenticity and track data ownership for Grass.

Grass' approach highlights how network extensions optimize data-heavy tasks by offloading processing while maintaining verifiable and cost-effective AI training data with Solana's security for final proofs.

Private Payments

Efficiency often comes at the expense of user privacy within payment systems. Traditional blockchain solutions may expose transaction histories or balances, which limits their suitability for users who require confidentiality. A network extension for private payments can leverage Solana's throughput to protect user data while executing secure global transactions.

  • Private transaction management: Users retain private access to their balance and transaction history so that their sensitive financial data remains confidential.
  • Batch processing: Transactions are processed through custom sequencing and batching, allowing for greater throughput payments.
  • Private micropayments enable developers to facilitate transactions as small as five cents while maintaining user anonymity.

Example: Code

Code provides a peer-to-peer payment platform that exemplifies the combination of payments and privacy, powered by Solana's infrastructure.

  • Private transaction data: Code ensures that only users have access to their own financial information, such as balances and payment history.
  • Global micropayments: Code facilitates cross-border payments and micropayments while maintaining user’s privacy.

Intent-Based Execution

In high-performance environments, executing complex transactions across multiple ecosystems can create bottlenecks. A network extension can streamline such operations by managing intents, which are user-defined instructions for specific outcomes through efficient routing and execution within the ecosystem.

  • Intent handling: Network extensions let users to define complex transaction workflows that are resolved dynamically without bridging assets across chains.
  • Efficient execution layer: Transactions are matched and executed on a fast, integrated infrastructure, ensuring reliability and minimal latency.

Example: Cube

Cube exemplifies intent-based execution by integrating deeply with Solana to offer frictionless, high-speed transaction processing and cross-chain interactions.

  • Intent resolution: Cube’s system dynamically processes user intents, such as multi-asset trades, without requiring manual bridging or intermediate steps by leveraging Solana’s inherent high-throughput infrastructure.
  • Integrated infrastructure: Cube achieves low latency and high reliability for executing trades and resolving intents efficiently.
  • User experience: Cube combines Solana’s performance with centralized exchange usability, letting users transact across multiple blockchains without compromising speed or security.

Building Network Extensions with Termina

Constructing a network extension from scratch can be complex. Teams often need to juggle specialized consensus logic, ZK modules, data solutions, and more. Termina streamlines this process via a modular infrastructure stack that plugs into Solana:

  • SVM Engine
    • Establish a customized execution environment (“sub-network”) on Solana.
    • Control how transactions are processed, ensuring parallelism and deterministic finality with native Solana integration.
  • zkSVM Prover
    • Add advanced cryptographic proofs like ZK verification to your environment.
    • Securely validate off-chain computations on-chain without incurring huge on-chain costs or lengthy challenge periods.
  • Data Module
    • Manage large-scale datasets via compression and off-chain storage.
    • Maintain minimal on-chain footprints and high data assurance through proof-based verifications.

Termina's Value Add
  • Pre-Built Infrastructure: Avoid the complexities of designing layers from scratch with ready-to-use components.
  • Developer Support: Access detailed documentation, tooling, and best practices to simplify the development process.
  • Time-to-Market: Accelerate project delivery by skipping the design of specialized consensus, proofs, or data frameworks.

Developers can customize network extensions in a modular, Lego-like fashion to suit unique project requirements, such as high-throughput MEV solutions, IoT connectivity hubs, or data-intensive AI pipelines.

Conclusion

Network extensions act as a buff to Solana's existing capabilities. Providers like Termina build specialized modules for computation, verification, and data management, allowing teams to accelerate development. This framework positions Solana to support complex applications in DeFi, IoT, data services, and more, all within a unified, high-performance blockchain network.

Interested in using Termina’s infrastructure? Register for our private network now: https://tally.so/r/wb20D7

References

  1. Grass Network Documentation
  2. Light Protocol Documentation
  3. Code Documentation