Why Solana has Replaced Ethereum as the “Bitcoin Killer”
With its blockchain approaching its theoretical peak capacity of 65,000 transactions per second, Solana is poised to give both Bitcoin and Ethereum a run for their money in 2022 and beyond.
Officially launching back in March of 2020, Solana’s founder, Anatoly Yakovenko, designed the blockchain to support smart contracts and the creation of decentralized applications, or dApps. The open-source protocol has since been turning heads for its ability to host scalable, user-friendly apps. After having long been dubbed the “Ethereum Killer,” this incredible network now adds the title “Bitcoin Killer” as it continues to gain steam in the DeFi realm in areas where others have stagnated. With industry-leading transaction speeds, low gas fees, and a market cap of just over $73 billion, it is no surprise that Solana has become the default protocol of choice for DeFi projects.
Solana’s successes have not been limited to their use in third-party projects, either. The blockchain’s native token, SOL, has been soaring steadily for over a year with its price increasing 17,500% from $1.50 to $204. SOL has repeatedly stolen the show by hitting one all-time high after another this past year and being a consistently high-performing digital asset.
In addition to developers and smaller investors, institutional players appear to be flocking to Solana’s open-source blockchain for several reasons, including demand from the much sought-after NFT market. To date, NFTs have traditionally been created and sold on Ethereum’s blockchain, however, it’s high fees and congestion have pushed creators to explore Solana’s blockchain for NFT development and sales. In response, Solana has launched several marketplaces (such as Digital Eyes and SolSea) in an attempt to keep up with this booming market, managing to nab its first million-dollar NFT sale a few months ago.
Meanwhile, Ethereum has been working towards an incremental shift towards Ethereum 2.0 which is set to make the blockchain far quicker and the transaction fees lower.
In addition to the parties above, as well as market analysts, Solana has been gaining praise from the crypto mogul and FTX CEO Sam Bankman-Fried who described its proof of stake (PoS) networks as one of the most compelling in the industry. Speaking at a crypto conference this past November, Bankman-Fried said, “Solana is one of the few currently existing public blockchains that has a really plausible roadmap to scale millions of transactions per second at you know, fractions of a penny per transaction, which is a scale that you need for this”.
With all the buzz (and governmental crackdowns!) surrounding Bitcoin’s energy exhaustive mining process, Solana is also being seen as the more environmentally-friendly choice. Solana’s combination of PoS and Proof of History (PoH) mining models have made transactions far quicker and with significantly less impact on society.
With many players currently in the DeFi marketspace, it is clear that Solana has broken through the noise through its embrace amongst both institutional and retail investors.
For more on Solana and other blockchains currently competing with Ethereum, be sure to check out the video below.
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