Crypto was a new concept around 2015 but now it is transforming the financial ecology of the world. Bitcoin and Ethereum came out to be the world’s largest cryptocurrencies.
Every day we witness huge fluctuations and new trends in the crypto market. Among the growing popularity of cryptocurrency, there is one hot crypto that is attracting investors. Solana has become very popular among traders, investors and institutions.
Solana has bagged the position among the top 10 cryptocurrencies. It currently has a fully diluted market capitalization of $75 billion. As of October 2021, Solana is trading around $150. At the start of this year, Solana was at $2.
With an overall market capitalization of $44 billion, Solana has become the fastest growing cryptocurrency. Currently, it is in the 6th position according to Coinmarketcap.com.
The growing popularity of the Solana is due to the acceptance of the Defi based crypto into businesses and transactions to make the process simpler. Crypto experts believe that Ethereum will surpass Bitcoin in the near future. However, another prediction states Solana as the Ethereum killer which has the potential to beat Ethereum before it beats Bitcoin.
what is Solana?
Solana was founded by Anatoly Yakovenko in the year 2017. It is a first-tier blockchain network that is capable of hosting smart contracts. Solana can also host applications that have computable bandwidth with modern-day internet.
What surprises us about Solana is that it can handle 65000 transactions per second. This is quite remarkable when you compare it to Ethereum’s 15. This has been made possible due to its fastest fourth-generation network of 50,000 TPS. It has an average block time of 600 milliseconds.
However, this speed is achieved by making the network more centralized. This raises a security concern. But the Solana team assures that no compromise has been made to the security and decentralized network.
What amazes us about Solana is that it is 3800 times faster than Ethereum. While the transaction cost of Ethereum lies in between $10-$15, Solana stands as a cost-effective altcoin. The per transaction charges of Solana is as low as $0.00025.
Is Solana a real ethereum killer?
The success of Solana lies in its capability to overcome the flaws and scalability issues of Bitcoin and Ethereum. The best thing about Solana is that it is an open-source project specially designed to host decentralized applications.
Solana has given the investors and traders the benefit of lower transaction fees and faster processing. All these that Ethereum failed to provide. Nowadays people are more interested in investing in NFTs, Defi, and other smart contracts based tokens and coins. What makes the future of Solana bright in 2022 is its ability to sustain in the changing market trends. Solana, unlike Ethereum, is based on a Proof of stake algorithm which is sustainable to the changing digital asset environment.
Another big advantage that Solana holds over Ethereum is the Proof of History. The PoH protocol or the Proof of History ensures a cryptographically verified historical record of time that has passed between two events. In the PoS system, it becomes difficult for the investors to find out the chronological order of the incoming blocks. This is where Solana’s Proof of History comes into play.
In the Solana Proof of History system, each Solana validator has its dedicated clock. These clocks keep the record of the events and time elapsed. With the help of VDF that is a Verifiable Delay Function, it generates a sequence. The founder of Solana called it a medium to encode time in the form of data.
To put it in simple terms, Solana can handle transactions rather than waiting for a block to be full, which may be a time-consuming procedure. As a result, Solana is more scalable and can handle more transactions than other blockchains.
Solana has 600 nodes and around 100 validators. it is far less when compared to that of Ethereum nodes. However, it is still considered an Ethereum killer because of its innovative mechanisms in the areas where Ethereum lacks.
Solana has come up with a very unique technique to speed up the transaction processing time. The nodes no longer have to employ computational power to validate distinct timestamps. The aforementioned innovative PoH mechanism speeds up transaction verification.
Credit to PoH, Solana promises to be able to execute 60,000 transactions per second. This is something impossible for Ethereum, Bitcoin, Visa, and XRP to achieve.
Solana also includes Turbine, a block transfer protocol that splits critical data into bits and sends it to nodes faster while consuming less bandwidth. In other approved proof-of-stake (DPoS) blockchains, Solana built Tower BFT. It is an upgraded version of the genuine Byzantine Fault Tolerance System (pBFT). PoS is also praised by Tower BFT for serving as the network’s gatekeeper.
The only thing standing in the way for Solana to become the Ethereum killer is its less adoption. Still, a majority of the investors prefer Ethereum. However, a strong NFT market, emerging NFT projects and institutional investors taking interest in Solana is slowly paving their way to win over Ethereum.
Ethereum 2.0 is nowhere in the scene until next year. On the other hand, the Solana mechanism which is based on Moore’s law makes it a sustainable future altcoin. In simple language, it means that in the coming days as technology and computers get faster, Solana will grow exponentially. Huge credit to its adaptable architectural design and impressive scalability it’s a sustainable future digital asset.
We will have to wait and see if Solana will be the ultimate destroyer of Ethereum in 2022.