The power of cheap transactions: Can Solana grow more than Ethereum?

Year-to-date, Solana has grown by nearly 13,000%, and the adoption rate has been increasing, which may be far beyond people’s imagination.

As the industry matures, the top-ranked cryptocurrencies by market capitalization continue to change over time. So far this year, the value of Solana ( SOL ) has soared and has been processing more than 2,500 transactions per second.

Solana is a blockchain platform that aims to achieve high transaction speeds at low cost without sacrificing decentralization. Solana can handle about 50,000 transactions per second, and Bitcoin is 7 pen, Ethernet Square is 15 pen.

Is Solana a threat to Ethereum?

Solana focuses on maintaining its decentralization while providing near-instant transactions at low cost, which is a way to attract users.

In an interview with Cointelegraph, Adrian Kolody, the founder of Domination Finance, stated that he believes that “Ethereum has too many users” to be surpassed by Solana. For Kolody, Ethereum is “a truly decentralized network, and Solana belongs to the SpeedFi category.” For him, some idealists refuse to interact with any ecosystem outside of Ethereum.

For Humiston of Kraken Intelligence, “If Solana maintains its momentum and develops its developer and user community, then it is possible for Solana to trade with Ethereum during this cycle.”

Humiston added that it is reasonable for the price of Ethereum to increase further in this cycle. For analysts, this potential price increase is a point worth considering on “why diversification among the largest smart contract platforms”.

Markus Bopp, CTO of the NFT platform Unifty, told Cointelegraph that he believes Solana “has great potential in technology.”

“That said, Ethereum cannot compete with the transaction speed on Solana, which developers may be paying more and more attention to.”

Jack McDonald, CEO of digital asset custody company Standard Custody & Trust Company, told Cointelegraph that Ethereum will “always occupy a prominent position in terms of market value” due to its first mover advantage and “significant network effects”.

Solana out of power for 17 hours

On September 14, the Solana network went offline for approximately 17 hours after being interrupted by a denial of service. At the time, the Twitter account Solana Status explained that the transaction load increased significantly to 400,000 times per second, which overwhelmed the network and caused the network to start bifurcation.

After Solana’s engineers were unable to stabilize the network, its verifier community coordinated a restart to bring it back to full speed. On the same day, Arbitrum One, the second layer of Ethereum aggregation network, reported that its sequencer was offline for approximately 45 minutes.

The attack failed to affect the Ethereum network, which was expected for Korody of Domination Finance. Kolody pointed out that Ethereum is “completely decentralized, and it is basically impossible to completely shut down the network”, which is “the reason why gas fees will become ridiculously high”.

He said that the resilience of Ethereum is part of the reason it “always lets users and developers build on it.” Humiston of Kraken Intelligence pointed out that the incident was the result of “demand” and did not scare off investors.

Internet problem?

Although most experts seem to agree that Solana’s 17-hour outage is a minor issue in the nascent network, others believe it may represent an issue that needs to be resolved before further outages occur.

According to the Solana web browser, the network has processed more than 39.6 billion transactions and currently processes more than 2,300 transactions per second. However, part of these transactions may be “thousands of key consensus messages” owned by all blockchains but not processed as transactions.

Justin Giudici, head of Telos Blockchain’s product, told Cointelegraph that these processes “usually are handled separately from on-chain transactions through different communication channels-for good reason.”

Giudici regards Solana’s 17-hour outage as a “serious problem” for the network because he believes that if Solana sees “enough real transactions”, he said that he estimates that “only 200-300 transactions per second” can be “due to There is a lack of separation of concerns in the network architecture, so priority is given to the functions of the core processes of the network.” 

Growing interest in Solana

The interest in Solana has been steadily growing, as evidenced by its growing DeFi ecosystem, which has been steadily supported with the launch of the new NFT market and collection. Its low transaction fees make it an attractive option for retail investors, although institutions are also paying close attention to it.

According to McDonald of Standard Custody & Trust Company, institutional investors are not the only ones interested in Solana. According to him, the company has “huge institutional interest” to host and pledge SOL.

Oscar L. Andrade, the founder of Bancambios, a Solana-based DeFi platform, pointed out the high-profile projects built on Solana: Reddit co-founder Alexis Ohanian has partnered with Solana Ventures to launch Web 3.0 and social project investment funds, and Brave founder Brendan Eich announced that it will integrate with Solana on privacy-enabled browsers.

Solana’s features do attract a large number of users, but this does not help it stand out. Its booming DeFi space allows retail investors to explore new financing options, decentralized exchanges and NFTs at affordable prices.

It remains to be seen whether Solana will maintain its position as the platform of choice due to its features, or whether Ethereum 2.0 and ETH ‘s second-tier scaling solutions will grow to exceed it.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-power-of-cheap-transactions-can-solana-grow-more-than-ethereum/
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