Recently, a Bank of America analyst published a report raising the possibility of Solana taking market share from Ethereum and thereby becoming the Visa of the crypto world. Why would this be possible? We tell you!
What is special about Solana?
Bank of America analyst Alkesh Shah published a crypto note arguing for Solana’s potential to take market share from Ethereum.
Shah particularly described Solana as a “Blockchain optimized for consumer use cases by prioritizing scalability, low transaction fees, and ease of use», quoting Lily Liu, a member of the Solana Foundation.
Therefore, Solana is superior to some of its rivals by offering low transaction costs and improved relative scalability. Also, this Blockchain obtains advantages over the rest by using Proof of History (PoH) and Proof of Stake (PoS).
«These innovations allow the processing of 65,000 transactions per second; leading the industry with average transaction fees of $0.00025, while remaining relatively decentralized and secureShah said. Thus, “Solana could become the Visa of the digital asset ecosystem».
Could it really take stake out of Ethereum?
As previously noted in CT, Ethereum’s scalability issues have prompted major solutions to emerge; Solana among them.
One problem that Blockchain technology faces is the inability to meet all three standards: Decentralization, Scalability, and Security. Ethereum prioritizes decentralization and security, but at the expense of scalability.
And this scalability problem is what leads to the Ethereum Blockchain becoming congested and having high transaction fees. Meanwhile, Solana prioritizes scalability.
In fact, an important differentiation between these two Blockchains is the use of PoH and that helps improve the performance of its PoS mechanism by SOL.
An important fact is that, according to a report, Solana turned out to be less harmful to the environment than Google. In fact, a Solana transaction consumes 24 times less energy than charging a mobile phone.
What will be the future of Solana? We want to know your opinion!