In recent times Blockchain Technology has taken the world by its finesse. Based on blockchain technology and cryptocurrencies, various business platforms have risen as well. These include the non-fungible tokens (NFTs) and Decentralized Finances. As a result, finding the best Blockchain is not the easiest task with the pros and cons associated with each.
The most eminent Blockchains include Solana and Ethereum which have also been making waves since 2020. Both have managed to draw attention to the feasibility of their value proposition, making it difficult to choose. To help you pick out the most ideal investment for 2022, we have drawn a comparison between Solana and Ethereum. Read on to find your pick.
Blockchain platforms allow the development of blockchain-based applications. Thereby assisting individuals in developing and hosting applications on Blockchain. Various platforms like Ethereum, Solana, Hyperledger and Ripple have come to the surface leading to a fluctuating field of investment. These add to the zest of Blockchain and the wondrous curiosity as to which one will be an ideal investment.
Solana has aced itself to be one of the fastest-growing systems globally, with various projects spanning it, including Defi, NFTs and Web3. The consensus mechanism that Solana has integrated is Proof of History (PoH), which is efficient, high speed and assists in low-cost transactions. The transaction speed for Solana is a whooping value under 400 milliseconds per block with inexpensive transactions set under $0.01.
The platform, however, isn’t as picturesque as it may seem. Unfortunately, the high-performance decentralized Blockchain is not much secure compared to its counterparts. Solana recently lost $325 million in funds due to a hack. Despite the drawback, Solana makes stands to have its ground. Solana is scalable at its core, meaning that layer-two solutions are not required. The integrated technology of Solana breaks down its data into smaller chunks which are easily transferred across the network interface, adding to its high-speed transactions as compared to other platforms.
The second most popular blockchain platform after Bitcoin is Ethereum. It is not limited to being the foundation for cryptocurrencies but also the base for decentralized application development. Ethereum has successfully managed to formulate a prosperous and open economy worldwide. The platform has been religiously involved in driving growth for digital collectibles and, as a result, is the first choice for NFT service providers. Before making an investment, you can check for Ethereum’s live pricing here.
Ethereum enjoys the reputation of being “data-friendly” despite the background and location of its users. Although the blockchain platform does not have Solana’s speed or cost-effectiveness, it has well-equipped decentralization at its core. The layer-two solutions add to its scalability and throughput significantly. The consensus mechanism that Ethereum utilizes is Proof of Work (PoW) which allows the decentralized network to come to a consensus. This adds to the security of Ethereum, making it virtually impenetrable.
Solana VS Ethereum – which is the better choice?
Now that we have a brief overview of the system opted for by each blockchain platform, we can easily compare the two. Ethereum by record is safer and more secure given its consensus system and layer-two solution. It is also decentralized, more than Solana, adding to its security.
On the other hand, Solana is more cost-effective and has a lightning speed hold on the transactions. Solana is also equipped with a high-performance protocol related to its scalability, whereas Ethereum has a limited scalability feature. Each has its own set of strengths and weaknesses. So, now the million-dollar question is…
When you sit down to decide which investment is a better option, there are a lot of features that take your notice. Also, the most pivotal of all is your personal choice. Are you looking for a free expressway with lightning speed and low cost? OR are you looking for a secure platform that may charge more?
Ethereum has been around since 2014 and is regarded as the safest bet in the crypto-sphere. The transactions are 13-15 per second, lower than Solana, expensive, yet secure. On the other hand, Solana reached the market in 2020 and has taken the crypto-world by storm.
It is affordable and has shown a tremendous rise in the market. However, you should note that these “parabolic” curves tend to burst. The investors that hop on the bandwagon with the fear of missing out almost always get burned with such investments. The long term performance of Solana is still to unravel, so you can either wait it out or choose to dive right in.