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.
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.
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.
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 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.
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.