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What is Solana – One of Ethereum’s Biggest Rivals?

Solana is a programmable blockchain

Solana can best be described as a programmable blockchain. It is currently one of the fastest programmable blockchains in the cryptocurrency space. It’s a big competitor to other programmable blockchains like Ethereum and Cardano.

Programmable blockchains are very popular in the cryptocurrency space and beyond because of their massive features and potential. They have the ability to store tiny pieces of code known as smart contracts. Smart contracts can be programmed to take certain actions when the terms of the contract are met.

For example, if you rent a car, the dealership can sign a smart contract that will automatically return your deposit if you return the car in good condition. Ethereum was the first and remained the leading programmable blockchain in the world. In recent years, the Ethereum blockchain has attracted a large number of developers who use it to create decentralized applications (dApps).

However, the Ethereum network still lags behind in some aspects, especially when it comes to scalability. The congestion of the network sometimes leads to high charges. The developers are currently working on ETH 2.0 and are migrating the blockchain from a proof of work to a proof of stake protocol. The ETH 2.0 upgrade is intended to solve the scalability problem and help Ethereum to reduce its carbon footprint.

Due to the shortcomings of Ethereum, new programmable blockchains have emerged that take part of Ethereum’s market share. Solana, Tezos, and Cardano are designed to be cheaper, faster, and more sustainable than Ethereum. Solana is now the fastest of them all.

How is Solana different from Ethereum?

Ethereum is currently the leader in smart contracts with over 70,000 nodes compared to just 1,000 for Solana. However, Solana is considered an Ethereum killer due to its innovation and the way it tackles some of Ethereum’s weaknesses.

Solana is revolutionizing the way blockchains work with its Proof-of-History (PoH) protocol. Having validators responsible for their own clock reduces the transaction verification process, as the nodes do not have to put up any computing power before they can verify various timestamps. This will improve the speed at which transactions are processed on the Solana network. The Solana network processes up to 60,000 transactions per second, outperforming those of Bitcoin, Visa, XRP and Ethereum combined.

In addition to the transaction speed, the costs on the Solana blockchain are significantly lower. As mentioned above, the high gas fees are one of Ethereum’s biggest challenges. Users pay up to $ 50 to complete a transaction on the Ethereum network. Earlier this week, Bitfinex paid $ 23.7 million just to move USDT 100,000 on the Ethereum network. At Solana, the fees are significantly lower, typically around $ 0.00025 per transaction.

How fast is Solana?

Solana is currently one of the fastest programmable blockchains in the world. It can handle more than 50,000 transactions per second (TPS). The developers say the transaction speed can reach 700,000 TPS as the network grows. This is far better than Ethereum, which is currently processing between 15 and 45 TPS.

Solana’s speed and low transaction fee have attracted numerous developers to the blockchain. A wide range of dApps and smart contract projects are now being used in the Solana project. This makes it one of the most widespread blockchains and cryptocurrencies in the world.

Coins supported by Solana Blockchain

The Solana blockchain is becoming home to a wide variety of cryptocurrencies. Some of them include;

  • Chain link
  • The graph
  • waves
  • serum
  • Audius
  • REN
  • Raydium
  • Coin98
  • oxygen
  • Akash network
  • Mango markets
  • Candles
  • citizenship
  • Bonfida
  • Star atlas
  • Hxro
  • Orca
  • relative
  • Solanium
  • ramp
  • Step finances
  • border
  • knowledge
  • Deal with
  • Just 1 and hundreds of others

Why did Solana pump when others dumped?

There’s no denying that Solana (SOL) is one of the top performing cryptocurrencies this year. SOL has battled its way into the top ten cryptocurrencies by market capitalization, outperforming Dogecoin and Polkadot, and also competes with XRP in terms of market capitalization.

Although the price is now slightly above $ 170, Solana hit a new all-time high of $ 213 on September 9. This was at a time when the broader cryptocurrency market was losing most of its value.

While other competitors like Ethereum, including Cardano, Polkadot, Dfinity, Terra, Polygon, and Avalanche, have all made tremendous gains over the past year, Solana’s performance has been exceptional.

A primary reason for its growth is that the Solana ecosystem is supported by FTX, one of the leading digital asset exchanges in the world. FTX has started numerous Solana-based projects in the past few months.

The Solana project is also backed by some of the largest investors in the cryptocurrency space, including Alameda Research, Andreessen Horowitz, and Polychain. Solana also has lower transaction fees than most of its competitors.

Some market experts believe that Solana is at the beginning of its growth cycle and has the potential to keep pace with Ethereum in terms of price and market value over the next several years. As a result, several investors remain optimistic about the medium- and long-term prospects for the Solana project.

Solana – a look into the future

Solana is one of the leading cryptocurrencies in the world. The cryptocurrency and its blockchain are expected to continue to grow and eventually pose further challenges for the Ethereum network.

Sam Bankman-Fried is very optimistic about the Solana blockchain and for good reason. The developers continue to be innovative and push for further developments. While Ethereum remains the market leader, Solana will continue to cut Ethereum’s market share alongside Cardano.

In terms of share price development, many analysts are optimistic that Solana’s share price could exceed the $ 1,000 mark in the coming months. If adoption and growth continues, SOL could hit ETH price of around $ 3,500 in the next few years.

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