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Table of contents

Introduction

The term "on-chain automation" describes the use of smart contracts and decentralised applications (D-Apps) to automate various operations and activities on the blockchain. It enables the construction of self-executing contracts that can be brought about by specific circumstances or occurrences. In contrast to web2 automation technologies, on-chain automation is decentralised, transparent, and immutable.

The following are some significant distinctions between Web2 (conventional web applications) automation solutions and on-chain automation technologies:

  1. Security and faith: On-chain automation makes use of the security and inherent trust offered by blockchain networks. Smart contracts, which are self-executing agreements with predetermined norms and conditions, control how automated activities are carried out. Since these smart contracts are stored and performed on the blockchain, they are transparent, unchangeable, and impervious to fraud. Trust is frequently placed in centralised entities in Web2 automation technologies, which may result in vulnerabilities and single points of failure.
  2. Decentralisation: On-chain automation utilises blockchain networks that are dispersed over numerous nodes, resulting in a decentralised mode of operation. The network participants check and verify the execution of automated tasks, ensuring consensus and removing the need for a centralised authority. Contrarily, Web2 automation solutions frequently rely on centralised servers or services that may go offline, be vulnerable to censorship, or be under the control of a single party.
  3. Composability and Interoperability: On-chain automation can communicate with different blockchain protocols, enabling communication across distinct decentralised apps. Smart contracts enable the development of intricate automated workflows by initiating operations and exchanging data across various blockchain networks. Integrations in Web2 automation technologies are often restricted to particular APIs and services offered by centralised platforms.
  4. Transparency and Auditability: Task execution using on-chain automation is transparent and auditable. The blockchain contains a complete history of all transactions and activities taken by smart contracts, enabling verification and auditing of the automation procedures. The fundamental operations and logic of Web2 automation tools are frequently opaque, making it challenging to verify the execution or track the actions taken.
  5. Tokenization and Rewards: Tokens or cryptocurrencies are frequently used in on-chain automation as a mechanism of value exchange and incentives. Token transfers and decentralised finance (DeFi) protocols can both be initiated by automated processes. The majority of Web2 automation technologies lack native tokenization and rely on conventional financial systems to trade value.

However, the following materials might be useful if you want to understand more about on-chain automation and how it functions:

  1. What are the "web3-features-and-challenges" according to xenonstack: https://www.xenonstack.com/blog/web3-features-and-challenges
  2. "What is Cross Chain" by Chainlink: https://chain.link/education/cross-chain

Ecosystem Map

Due to its scalability and quick transaction processing, Solana is a high-performance blockchain platform that has attracted a lot of attention in the cryptocurrency market. While Solana itself offers a solid foundation for creating decentralised applications, the Solana ecosystem for automation consists of numerous tools, protocols, and initiatives that promote automation and expand the network's capabilities.

The number of automation projects being developed on the blockchain of the Solana ecosystem has increased significantly. On Solana, major automation initiatives include:

  1. Raydium, an automated market maker (AMM) that enables decentralised token trading and liquidity provision. The link of the Project is **https://raydium.io/**
  2. Mango Markets, a decentralised platform for margin trading, enables users to trade leveraged futures and perpetuals on Solana. The link of the project is **https://mango.markets/**