solana

WHY HAS SOLANA BECOME THE BIGGEST ‘ETHEREUM KILLER’ IN 2021

The popularity that cryptocurrencies have gained is unparalleled. Apparently, Bitcoin and Ethereum have taken the world by storm. Recently, a new token in the cryptocurrency market named Solana is gaining the spotlight among the crypto users.

Solana has become one of the most talked-about topics in 2021, owing to the surging price of SOL tokens. Also, the emergence of Solana seems to affect the position of Ethereum substantially by providing solutions to many issues that Ethereum users face. So, is Solana truly the next Ethereum? or what is the reason behind Solana becoming the biggest Ethereum killer?

Let us start with some fundamentals.

What is Solana (SOL)?

Solana is a public blockchain network that has an ecosystem of cryptocurrency. Crypto developers designed the blockchain at Solana Labs, San Francisco. It streamlines quick transactions, provides robust security algorithms, and processes transactions in relatively less fee.

Almost all the features of Solana are similar to the features of Ethereum and Bitcoin. It can deal with about -fifty thousand transactions at one go in a second. Not only that, the transaction’ speed can increase up to 700,000 TPS.

Features of Solana(SOL)

Solana, the fastest blockchain in the world, is presently a solid competitor to all the cryptocurrencies in the cryptocurrency space. Some of the important features of Solana are given below:

Byzantine Fault Tolerance (BFT):

The Byzantine Fault Tolerance (BFT) system is strong protection for the Solana environment.

This guarantees that a particular outgrowth or node blunder will not influence the working of the whole system. The BFT algorithm also encourages the nodes to proceed with working even after several failures.

Cloudbreak:

Solana(SOL) interprets a horizontal scaling technique that ultimately amplifies the scalability. Cloudbreak can also organize a database and is responsible for solidifying a connection of hardware and software.

Turbine:

SOL divides blocks into smaller batches to increase the transaction speed. Usually, the batch size is 64 KB. Hence, to transfer big-sized data up to 128 MB, it will distribute around 2,000 individual 64 KB batches to different validators to complete the transaction quickly.

Other than these, the other features include Proof-of-History (PoH), Gulfstream, Sealevel, and Pipeline.

What is an Ethereum?

Ethereum (ETH) is the world’s second largest cryptocurrency after Bitcoin. Vitalik Buterin firstly introduced Ethereum in the year 2013. It is one of the most influential open-source blockchains.

Ethereum platform allows everyone to install different unchangeable decentralized applications, through which users can easily interact.

Ethereum technology approves blockchain advancement to rebuild the storage of consumer data that includes financial records. Ethereum expert also started working on the PoW and PoS, eventually being published in the coming days. Unlike Bitcoin, the ethereum blockchain is vaster. Ethereum blockchain can build code into the transactions.

It also allows crypto traders to execute all the activities safely and securely.

Why is Solana called the ‘Ethereum Killer’?

The primary and outstanding justification for this could be the elements that Solana(SOL) is delivering. Also distinguishable from Ethereum, Solana(SOL) is both a Proof-of-Stake(PoS) and Proof-of-Work blockchain, and it is more eco-friendly.

SOLANA(SOL) is an open-source project specifically built to host decentralized applications and has progressed in popularity by providing great things to crypto traders.

The ethereum blockchain has been powerless to offer those faster performances with the lowest transaction fees so far. Crypto traders are now shifting towards SOL.

The investment in DeFi, Non-Fungible Tokens/NFT, and others are rapidly growing. We can say that Solana (SOL) is more endurable in the cryptocurrency market.

Facts about Solana:

SOL’s DeFi projects have now crossed over $3 billion this year and are gradually increasing. Moreover, comparatively there are more Solana-based projects (350+) than Ethereum ( 215 projects). This statement is perhaps the reason why SOL has the potential to become the most extensive killer of Ethereum. It is approximately 3800 times faster than Ethereum with a drastic ‘Pocket Friendly’ cost, i.e., $0.00025 per transaction. Ethereum’s cost can range between$10-$65, which is a huge difference.

The drawbacks that were in Ether acted as plus points to the SOL. For example, the most typical weakness or shortcoming of Ethereum was the transaction percentage which is only 30 transactions per second. Apparently, Solana can accommodate 50-60 thousand plus transactions in a single second.

The next aspect that can be a part of Solana is burning tokens that stand similar to Ethereum.

Which is better: Solana (SOL) or Ethereum (ETH)?

No doubt, from the above points we all have a clear chart of how Solana is better than Ethereum.

Solana has directly crossed Ethereum in the speed of transactions executed, an enormous accomplishment for a newly initiated token. The large bandwidth and the incomparable speed of the transactions cause it to stand at a high position in no time.

Unquestionably, Solana will get great feedback if it continues to attract all cryptocurrency traders.

These modern developments today indicate that there will be an increase in the strategy of blockchain techniques, and people are also formulating the aspects that are going on in the crypto area. There is an excellent opportunity for the crypto space to get expanded in the coming years.

Solana cluster

The Solana Cluster plays a significant position in the Solana software.

A cluster is a batch of computers that works jointly.

The computers here assist in verifying the output programs. Besides, we can use the Solana cluster whenever a user needs to maintain unchangeable records or programmatic statements.

Solana’s future

Solana crypto stands up as the 7th cryptocurrency in the global crypto market. Providing sections for some of the most successful projects worldwide is one of the advantages of its achievement, and Solana has achieved it.

The passion and excitement over Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) are the other reasons for investing in this crypto which is most popular and secure.

Though the popularity is increasing day by day, we can say that the future of Solana(SOL) can be outstanding. Many Crypto Traders are finally shifting towards SOL in the year 2021.

Final outcome

We can say that one of the massive reasons behind Solana’s advancement is that crypto traders are looking for substitutes to Ethereum.

Ethereum being the first platform in the world to adapt the smart contracts in the crypto space is the 2nd largest cryptocurrency that stands behind Bitcoin. Now, what Smart Contracts are?

Smart contracts are the codes that permit the different blockchain platforms in running decentralized applications along with other programs. The main problem is that Ethereum’s network is heavily clogged, and transactions have become costlier.

As an outcome, the attention is on new platforms with outstanding aspects and less costly and faster.

Not only Solana but there are numerous “Ethereum killers” jiggling for the best position.

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Blockchain Weekly Source

Ethereum vs Solana vs Cardano — who is DeFi's favourite

The general consensus regarding the future of cryptocurrencies is that it lies in the expansion of decentralized applications or DApps as we call them. Even though the hype surrounding the cryptocurrencies are based on their volatility and market capitalizations, it is true that ultimately crypto is a newly emerging software and like any other piece of software, the real worth of cryptocurrencies are also determined by their utilitarian standards.

From that perspective, it can be understood how individuals view the competition amidst the host of cryptocurrencies that are available in the market. However, the competition is perhaps the toughest among the three cryptocurrencies namely, Ethereum, Solana and Cardano, who are battling it out to take over the smart contracts space.

At the very core of these cryptocurrencies, including the three aforementioned ones, lies the individual algorithm which drives them. Actually Ethereum, Cardano and Solana are the names of the Blockchain platforms upon which their cryptocurrencies operate. The Ethereum blockchain uses a crypto token named ETH while the Cardano and Solana chains utilize their respectives tokens by the name of ADA and SOL.

What are Smart Contracts?

Smart Contracts are one of the most talked-about things in the blockchain and crypto community. So what are they? Well smart contracts are that which separates Bitcoin from the rest of the altcoins such as Ethereum, Solana, Cardano or even the Binance coin. Their algorithms contain tiny little pieces of codes which automatically execute themselves when certain conditions are met. To put it simply, these are ‘if, when, then’ statements that are automatically executed at the right time. The parties who are involved in the conducting transactions can put as many of these statements in the form of conditions as they want.

Ethereum: how it started?

Even though Bitcoin will always be remembered for introducing the blockchain technology and the concept of cryptocurrency in the world, it can be said that Ethereum has transcended Bitcoin by revolutionising finance in the world. It was created by a 27 year old Russian programmer named Vitalik Buterin, who named it after Ether, a scientific term from the 19th century.

As soon as smart contracts were made available on Ethereum, it became a revelation in the world of crypto. As Bitcoin was considered to be an alternative to currencies, Ethereum became an alternative to that and everything beyond. Ethereum empowered the developers to utilize the technology of blockchain and build things that would revolutionize the future.

How does Cardano challenge the position of Ethereum in the crypto space?

Ethereum grew exponentially ever since it was launched in 2013, but however, there was a major shortcoming despite all the good things it had to offer, and it was due to the fact that Ethereum was running on Proof of Work system.

Large organisations called miners authenticate crypto transactions through a series of computers. The miners can only provide enough power required to authenticate or validate the transactions. They do not have the capacity to change or modify the blockchain or the transactions carried out on it. By performing this work, the miners are rewarded with new crypto. This is what is generally meant by a proof of work system.

The problem with this system is that, in the case of Ethereum and even Bitcoin, every miner who is involved in a transaction is rewarded and hence, in order to reward every time a transaction is carried out, a huge amount of computing power is required. Here, Cardano makes use of a system called the Proof of Stake (POS), which is a lot more efficient.

In the POS system, the miner is required to strake their own crypto to be eligible to receive rewards in the first place. The platform then automatically points out the top miners, which is always a predefined number of miners and allows them to validate the transactions. As a result the overall computing power and thereby the total amount of electricity required to power those computers comes down at a considerably faster rate. This is one of the most important reasons why it is environmentally much more sound than that of Ethereum or Bitcoin, and in reality the same goes for Solana as well.

Solana and Cardano: the Ethereum killers

The main reason why Cardano and Solana are called Ethereum killers is because of the proof of stake system used by both of them. As of this moment, they are a lot more efficient than Ethereum or Bitcoin and they also provide the answer to the most compelling question from the experts, billionaires and world governments regarding crypto and that is concerned with the environmental footprint of these digital assets.

However, next year Ethereum is planning to upgrade to the Proof of Stake system as well and launch the version 2.0 which is believed to reduce their energy requirements by around 99 percent.

Conclusion: Which one is expected to lead the race?

There are two major points that need to be mentioned at this point. Firstly, Ethereum, Cardano and Solana all are either upgrading or are already providing Proof of Stake system while offering smart contracts. The problem, with Ethereum, is however with scalability.

Every time a transaction is carried out on the Ethereum platform, one has to pay a gas fee or a transaction fee, irrespective of what the nature of that transaction might be. As of this moment, the gas fees can even go up to $150 and owing to the volume of transactions taking place on this platform, the gas charges are volatile.

In comparison, the transaction charges required for Solana and Cardano platforms are quite less, as they cost a dollar or even less at the moment. The Solana platform has addressed this issue of scalability by introducing a cryptographic time-stamping system which can accommodate an astonishing 65000 transactions per second.

On the other hand, the problem with Solana and Cardano is that of adoption. The market capitalizations for both of these crypto currencies are lower than even half of the market capitalization of Ethereum. As a result, the market is speculative for both of them.

Undertaking courses on cryptocurrency trading, attending a cryptocurrency course or even gaining a Blockchain certification provides the necessary and fundamental knowledge for the assessment of the crypto and blockchain ecosystem.