5 reasons to buy Solana instead of Ethereum

There is a big gap between the prices of ETH and SOL, but it might be smarter to buy 15 SOL than 1 ETH. However, whatever you decide to do, be smart, do your research, and average the costs.

While both cryptocurrencies have great value, their values extend beyond being cryptocurrencies to their underlying blockchains. Solana (SOL) and Ethereum (ETH) and serve as native coins for two giant blockchains.

Although they have great similarities, they have some distinct differences. As a pioneer, the Ethereum blockchain has seen massive growth for its responsibility for decentralized applications. Likewise, its involvement in the creation of digital assets (NFT).

However, this created some worthy competitions, one of them being the Solana blockchain. And while the founders of Solana believe there may be some form of beneficial relationship, crypto enthusiasts believe it is the “Ethereum killer.”

Solana was created two years after Ethereum by Anatoly Yakovenko to solve the scalability problem that existed among blockchains of the time. He also sought to overcome resistance to censorship.

The Solana blockchain is a third-generation distributed ledger that promises efficiency using fewer nodes. Its white paper and test network were published in 2018, while a mainnet beta was launched in March 2020.

Unlike its predecessors, blockchain relied on eight key technologies, one of which was a mechanism. proof of history, a BFT tower, a block propagation protocol (Turbine), a transaction validation optimization unit (Pipelining), a storage unit for its ledgers (Archivers), a processing unit smart contract transactions (Sealevel) and a network data sharing protocol (Cloudbreak).

Technologies served as the basis for the innovation known as the Solana blockchain today. However, that alone cannot convince you to choose it over Ethereum; so, consider the following.

1.Consensus mechanism

Unlike Ethereum, the Solana blockchain uses Tower Byzantine Fault Tolerance (BFT) (a modified PBFT) to secure its operations.

It is integrated with a delegated proof of stake (DPoS) which uses a voting and reputation system to secure and manage the network. On top of that, it uses the story proof novel’s approach.

This allows the network to add time to its registers, thus verifying the transaction time. It also links the messages of the nodes between them, allowing a chronological validation of the blocks.

This implies that the consensus process becomes faster and that transaction latency and messaging overload are reduced.

Likewise, each node can independently verify the validity of transactions.

2.Room for growth

Blockchain still has excessive growth potential, given that it can also interact with smart contracts.

It is currently home to several projects covering dApps, DEXs, DeFi platforms and Automated Market Makers (AMMs).

The Solana ecosystem boasts of numerous wallets, oracles, stablecoins and infrastructure.

It entered the NFT space with the launch of the Degenerate Ape Academy. This helped its native token experience a price increase of over 10,000%.

It has more than 400 dApp projects on its network. Notable examples are Serum, Audius, Raydium, Open Ocean, DeFi Land, Metaplex and Francium. Its coin is currently trading at $ 174.35, which is over $ 3,500 lower than Ethereum. Solana continues to grow, in terms of project and value. The ideal would be to invest in it at this stage.

3.Scalability and speed

Blockchain also solves one of the blockchain trilemmas. It has gained popularity and adoption due to its scalability and speed. Unlike Ethereum, it is fast and scalable. While Ethereum still struggles with 15-45 Transactions Per Second (TPS), Solana is already doing 50,000 TPS and can do more.

In the context, it is 4000 times faster than Ethereum. This throughput also gives it an advantage on transaction costs; the more transactions you can execute, the lower the cost of executing them.

So, it charges less than Ethereum for its transactions – around $ 0.000025 per transaction. The various technologies behind blockchain can maintain its speed and efficiency without a Layer 2 blockchain.

It can maintain its target throughput and speed as more projects are implemented in the ecosystem.

Its low processing power and proof of history model are designed to be efficient and secure.

Due to the high fees and congestion of the Ethereum blockchain, this is the best alternative.

4.Environmental impact

The question of how environmentally friendly cryptocurrencies are has hampered their mass adoption. Everyone is campaigning for eco-responsible projects. Bitcoin and Ethereum use a mining (proof of work) model that negatively affects the environment.

However, Solana is expected to be energy efficient with her new consensus mechanisms. Indeed, its mining model requires little computing power.

Validators use their native currency (SOL) to provide compute services and operate the network.

Solana has also developed a bridge that allows the transfer of assets from Ethereum to Solana; this would help reduce the use of Ethereum, thereby reducing its environmental impact. From a distance, Solana is a greener alternative to previous blockchains.

5.GROUND

It is the native token of the Solana blockchain and has several use cases.

It can be delegated to a validator or staked with rewards. It can also be used to make payments, settle transaction fees, access projects on the blockchain, and as a governance token.

Of the SOL initially created, 60.4% is in the custody of the founders, the Solana Foundation, and blocked investors.

1.6% was auctioned and 38% was allocated to the community. Of the total 508.2 million offers, 309.3 million are in active circulation. It is currently ranked 5th with a market cap of $ 53.9 billion. SOL gives an annual percentage return of more than 5% when staked.

Solana has the third largest futures market and leads the TVL, user and derivatives market. In addition, it has some very interesting features. However, it should be noted that the Ethereum blockchain has more decentralized applications and more stability.

This is negated by the speed, scalability, and transaction cost of the Solana blockchain. As investors, developers and crypto enthusiasts, they are looking for an alternative to Ethereum; they turn to Solana because it offers virtually everything the Ethereum blockchain has to offer and more cheaply and at high speed.

There is a big gap between the prices of ETH and SOL, but it would be smarter to buy 15 SOL than 1 ETH. However, whatever you decide to do, be smart, do your research, and average the costs.

Source: thebharatexpressnews