Blinks and Actions: The Key to Crypto Mass Adoption

Photo - Blinks and Actions: The Key to Crypto Mass Adoption
On June 25, 2024, the Solana Foundation announced the launch of two innovative solutions, Actions and Blinks, developed in collaboration with Dialect Labs. These tools are designed to simplify user interactions with the Solana blockchain.
Cryptocurrency adoption is closely linked to how easily users can interact with these technologies. For widespread adoption, users need solutions that simplify blockchain interactions to the level of standard app usability. 

The initial approach to this was through CEXs—centralized cryptocurrency exchanges—which facilitated easy purchasing, selling, and trading of crypto assets, while also managing users' funds. 

However, CEXs do not fully address all user needs. For instance, many don't support the purchase of NFTs, and the newest meme coins are often not listed. These limitations necessitate users learning to navigate decentralized solutions like non-custodial wallets, DEXs, and cross-chain bridges.

However, interacting with DeFi (Decentralized Finance) can be complex. For example, purchasing a token on a DEX requires finding the right exchange, connecting a crypto wallet, selecting a trading pair, and authorizing the transaction. Moreover, the purchased token may not automatically appear in the wallet, prompting the user to manually add the token's address. This complex process can be off-putting for newcomers. 

Blinks and Actions facilitate on-chain transactions directly on websites, social media platforms, or through physical QR codes. These new tools enable functionalities such as making donations, buying NFTs, staking tokens, and voting directly where the actions are initiated.

For example, using Blinks and Actions requires integrating with corresponding projects within the Solana ecosystem—Sphere for donations, Tensor for purchasing NFTs, and Jupiter for token swaps. This integration means that users do not have to navigate away to different sites to perform these actions. 
Using Blinks and Actions for NFT purchases, token transactions, and voting. Source: x.com

Using Blinks and Actions for NFT purchases, token transactions, and voting. Source: x.com

Here's an explanation of how donations work with this technology:

  • Users can make a donation request on X and include a Blink—a specialized link.
  • This link converts into a simple user interface that displays transaction buttons.
  • The user then selects an amount to donate and only needs to authorize the transaction in their crypto wallet, avoiding the need to navigate away to DEXs or other decentralized apps (dApps); everything is processed directly within the X interface.

As of July 2024, Blinks and Actions are available exclusively on X. However, they are technically capable of being implemented on any website, including platforms like Discord and Reddit.

These tools were developed by Solana and are compatible only with native crypto wallets like Phantom and Backpack. Users must activate their support in their wallet settings.

Blinks and Actions: What's the difference?

In simple terms, an Action is a mechanism that interprets blockchain interactions, whereas a Blink provides a user interface to facilitate these Actions easily.

Actions are essentially APIs or specifications that allow users to view, sign, and send transactions directly with the Solana blockchain in various contexts, such as QR codes, buttons, and web widgets. They integrate blockchain actions directly into the development environment without leaving the website.

Blinks, or blockchain links, transform Actions into URLs. They enable client supports, like crypto wallets and Telegram or Discord bots, to display enhanced functionalities for the user, such as:

  • Providing a widget for blockchain transactions directly on websites, eliminating the need to navigate to dApps;
  • Expanding Discord bot capabilities by creating interactive transaction buttons.

Consider Actions as the backend (the server-side of the solution) and Blinks as the frontend (the user-facing part of the system). While this comparison might be simplified for non-technical users, it helps in understanding the purpose and functionality of Blinks and Actions.
Creating a user-friendly interface for donations with Blinks. Source: dialect.to

Creating a user-friendly interface for donations with Blinks. Source: dialect.to

It also spreads on-chain interactions across any web platform that can display a URL. This approach removes the need to redirect to another resource like a DEX, thus simplifying and broadening cryptocurrency usage.

The naming of Solana’s new solutions also carries marketing implications: 'Actions' implies integrating blockchain activities directly into traditional web spaces, while 'Blinks' suggests that blockchain operations are now as quick as the blink of an eye.

The Downside of Blinks and Actions

The advantages of Blinks and Actions are clear: they simplify on-chain transactions, onboard new users into the world of cryptocurrency operations, and offer flexibility for use across various platforms. 

Fewer clicks → more convenience → higher likelihood of engaging with the initiative (donations, NFT purchases, etc.).

However, community concerns about these features are growing. One concern is that famous people might find it easier to launch celebrity coins, which are typically involved in pump-and-dump schemes.
Conceptual illustration of the promotion of celebrity coins after the implementation of Blinks and Actions. Source: substack.com

Conceptual illustration of the promotion of celebrity coins after the implementation of Blinks and Actions. Source: substack.com

A more pressing concern is the potential creation of phishing links disguised as Blinks and Actions. Fraudsters could exploit the Blinks' UI design or the Blinks themselves to deceive users into providing access to their wallet assets. Consequently, many advise using a separate crypto wallet when interacting with Blinks for added security.

Acknowledging the potential for abuse, the Solana team has taken preventive measures by establishing a "whitelist" of Action URLs. Creators must register their URL with Dialect—the company that co-developed Blinks and Actions—and provide necessary details such as:

  • The name of the Action and the project name;
  • Email, Telegram, and Twitter of the project;
  • A brief explanation of the registered Action;
  • Action API URL and Blink URL.

As of July 2024, Dialect has registered 168 trusted Actions. Users are warned when interacting with non-whitelisted Actions, which could be fraudulent.

Farcaster and Frames

Solana is not the first project to launch a solution like this. Blinks and Actions bear a close resemblance to Frames from Farcaster—an X-like social media platform on the Ethereum blockchain.
Solana Blinks does what Farcaster Frames does, but better. Source: x.com

Solana Blinks does what Farcaster Frames does, but better. Source: x.com

Frames transforms a cast (a post on Farcaster) into an interactive application. Instead of simply posting a link, Frames can turn it into a widget with an image and buttons, allowing users to initiate specific actions directly.
Examples of Frames on Farcaster. Source: substack.com

Examples of Frames on Farcaster. Source: substack.com

However, the implementation of Frames is restricted to applications within the Farcaster ecosystem, like Warpcast. This limitation means content creators cannot share a Frame on other social networks, reducing the visibility of their posts.

On the other hand, Blinks and Actions meet users where they spend most of their time—on web2 social networks. This approach enables Solana to access a vast user base on platforms like X, Instagram, Facebook, and SocialFi projects such as Farcaster, Lens, and others.

Comparing Onboarding on Solana and Other Blockchains

Studies suggest the average human attention span has dwindled to just 8.25 seconds. For marketers, this indicates that any initial inconvenience when interacting with a product could deter a user forever. Hence, marketers, including those in crypto, are keen to make the onboarding process as seamless and quick as possible.

Here’s how this is executed on other blockchains:

  • Bitcoin. There are no significant solutions to enhance user onboarding. Development is mainly driven by enthusiasts like Casey Rodarmor.
  • Ethereum: Develops various browser-based web3 extensions (crypto wallets, DEX exchanges), L2 protocols, and social media platforms such as Farcaster.
  • The Open Network (TON): Integrates Mini Apps with the Telegram messenger and its features.

Unlike the solutions mentioned above, Blinks and Actions offer greater versatility. 

While Ethereum improves onboarding by reducing fees and speeding up transactions, Solana focuses on meme coins and simplifies interactions with them. The Open Network attracts users from Telegram (which boasts about 900 million users), while Solana aims to capture the broader web2 social environment, potentially reaching around 5 billion people registered across social media platforms.

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Vlad Vovk
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Writes about DeFi and cryptocurrencies from a technological perspective.