How does Solana compete with Ethereum if it breaks twice a month?

The self-proclaimed high-performance Solana is broken again.

According to a tweet from Solana Status, the Solana mainnet went down again at around 0:30 this morning and stopped new block production due to an error in the persistent random number function of the blockchain, which caused some networks to consider the block invalid. , no consensus can be formed. Around 5 am, Soalana mainnet validators cooperated to restart the Solana network, disabled the persistent random number function, and now block production has been resumed.

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Solana has grown in popularity in the NFT and DeFi ecosystem in recent years because it is cheaper and faster to use than Ethereum. According to its website, its blockchain processes 50,000 transactions per second, with an average cost of $0.00025 per transaction. Ethereum can only process about 13 transactions per second, and transaction fees are much more expensive than Solana. However, Solana, the so-called “Ethereum killer”, has experienced several network outages and failures over the past year.

On May 27th, the Solana network was half an hour behind real world time due to slower slot times. While the issue will not affect network operations, it may result in a reduction in staking reward earnings.

On May 1, the Solana mainnet Beta suspended block production at 05:00 on the same day, and the network was interrupted for about 7 hours. The reason for the downtime was the crawler of the Candy Machine program. In September of last year, Solana was down for 17 hours due to insufficient memory on the validator; in December of last year and January of this year, it suffered network congestion due to DDoS attacks.

Crypto user @CryptoWhale commented: “The ‘decentralized’ Solana network has been shut down by developers for the 8th time this year. What a joke!”

Insufficient network performance and stability began to put l at a disadvantage in the competition of the public chain camp. According to defillama data, there are only 67 protocols on the Solana chain, which is far behind Ethereum, BSC, Avalanche, and the relatively low-ranking Polygon and Fantom. From the perspective of TVL, Solana ranks fifth in the public chain with a total lock-up volume of US$3.84 billion.

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Also, according to the tokenterminal data, Solana’s overall efficiency doesn’t look too high. While there has also been a noticeable increase in sales, there are key differences with Ethereum. For Solana, protocol revenue is only 50%. For Ethereum, 80-90%, Ethereum can significantly increase protocol revenue.

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Solana Protocol Revenue vs Miner Revenue

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Ethereum Protocol Revenue vs Miner Revenue

From the perspective of the secondary market, although the crypto market continues to fluctuate and decline, with BTC down 57% from the all-time high and ETH down by 63% from the all-time high, solana has fallen by more than 12% in the last 24 hours and 85% from the all-time high.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-does-solana-compete-with-ethereum-if-it-breaks-twice-a-month/
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