This may be because the Solana blockchain is very cheap, fast and expandable.
Visa Crypto networks, such as a
Bank of America Analyst
Solana competes with Ethereum and other “Layer 1” blockchains to market and launch digital assets such as platforms, DeFi applications and business protocols. It is rich in NFT, or non-volatile tokens. And since its inception in March 2020, the network has accumulated more than $ 50 billion in transactions, with $ 10 billion worth of crypto now locked in, ”said Defi Lama.
Solana is a threat to existing financial networks due to its speed, cost and scale. The network is built on a “stakeholder authentication” system that does not require as much computer power as the current version of Ethereum, which agrees to authenticate transactions such as Bitcoin.
Solana can handle 65,000 industry-leading transactions per second or TPS. (It currently handles 1,954 transactions per second.) The fee is low — on average $ 0.00025 per transaction. And according to Solana, the scale ensures developers and users stay on less than $ 0.01 per transaction. Ethereum, on the other hand, is so congested that it currently handles 16 transactions per second at an average of $ 14, according to Iterskan.
Alcash Shah, head of digital asset strategy at the Bank of America, said in a statement issued Tuesday that “digital assets can be an ecological visa,” given the low cost, speed and scalability.
Shah Solana introduced “history verification” algorithms and other innovations that could improve performance and expand usage. More than 400 projects are under construction on the network, including Serum, a high-frequency trading platform and Metaplex, an application to create and host NFT store front-end applications, he wrote. The music streaming platform Odius is also being built on Solana, which will allow song owners to take ownership of some of their work, Shah said.
Solana is facing a major setback. The Swiss-based Solana Foundation-based network has experienced some disruptions and performance issues. Its network is now decentralized to Ethereum, and that makes it more vulnerable to security issues or hacks.
Ethereum, in addition, has a wide pencil. The $ 397 billion token is the second largest blockchain network after Bitcoin, recently worth $ 3,320. Ethereum is a giant trading and lending giant with more than $ 150 billion in assets locked on the network. And the developers are planning a major overhaul this year to transform the network into a stock certification system. That can significantly reduce transaction fees and increase settlement times.
But as Shah says, this is not a zero-sum game. Solana can grow for micro-trades and NFTs, he said.
Investors appear to be playing a key role in Solana. His native SOL now has a market value of $ 49 billion and has risen 6,140 percent from $ 2.50 to $ 156 in the last 12 months.
Visa Tracker V, on the other hand, aims to be a player in crypto. Visa’s chief financial officer, Vasan Prabhu, said in a recent interview. BaronThe network can handle 65,000 transactions per second. “Real cryptos are not fast enough for shopping transactions,” he said. “The transaction cost using fiat currency on the Visa network is relatively small compared to the cost for Bit Coin and Ether.”
Visa also sees itself as a link between banks, cryptocurrencies and retention platforms. “We are trying to be a bridge not only between the fiat world and the crypto world but also in the crypto world,” Prabhu said.
Solana, Ethereum and others are building bridges connecting the traditional payment and financial networks to the new decentralized blockchain world. Investors who do not want to take sides should distribute their bets to players in the system – such as Visa,
PayPal Holdings (PYPL), and
Block (SQ) – and beginners are buying their tokens and planning to evict them.
Write to Daren Fonda at email@example.com