A couple of years ago, absolutely no one could have imagined how blockchain technology and cryptocurrency would change the digital world. Today, we have already witnessed new revolutionized business models emerging in the infrastructures of blockchain technology. NFTs and decentralized finance have become the most prominent trends and most talked-about topics in the last years. And as the demand and necessity for such blockchain-based solutions continue to hit the market, the need for blockchain networks to provide such services has also grown significantly.
The Solana vs. Ethereum comparison directly draws its footnotes from such concerns and discussions. Which of these two blockchain platforms is the perfect option for the development prospect?
The following detailed comparison will help you determine the core differences between Solana and Ethereum blockchains based on various factors and identify the optimal pick for you according to their capabilities and features. So, without further ado, let’s begin.
Solana vs. Ethereum Comparison
As we have already learned more about the two blockchains, we can move on to the Solana vs. Ethereum comparison.
From the above-described features and characteristics, we can assume that the Ethereum network is the most secure and decentralized option of the two. At the same time, Solana is the more cost-effective and quick network compared to Ethereum. But is this enough to determine which one is the better? Probably not, because both Ethereum and Solana are worth being examined more carefully. That’s why let’s review some more and see if this battle will have a winner or not.
Solana Vs. Ethereum: Which One is Better?
When determining which network is better out of the two, your personal goals and requirements come to the first plan. For example, do you prefer a more secure blockchain with comparatively high costs? Or do you primarily care about the fast speed and cost-effectiveness? These are the basic questions you need to answer before choosing a suitable platform. And depending on that answer, you can pick either Ethereum or Solana.
If you want to engage your financial activities on the most secure blockchain, confidently choose the Ethereum platform as the most mature option available in the crypto market.
If you care more about low-cost and fast transactions, Solana is the best pick as the most affordable and efficient network.
Solana Vs. Ethereum: Which One is More Popular?
The Solana vs. Ethereum comparison undoubtedly would be incomplete without a proper popularity contest.
The primary factor worth considering while comparing two blockchains is reviewing their market caps. Currently, the market cap of Solana is approximately $28 million. In contrast, Ethereum has a market cap of $354 billion.
Furthermore, according to NFT space preferences, Ethereum wins over Solana, and the proof is that most blue-chip NFT projects are currently built and based on the Ethereum network.
However, based solely on these technical and theoretical aspects, confidently determining the best platform is impossible. Both Solana and Ethereum blockchains have pros and cons at the end of the day. No one can be claimed as the winner. So, if you have a hard time picking the right fit for you, ask yourself what your main objectives are and what you need the most. After finding the answers, the choice will already be apparent.
General Introduction of the Ethereum Network
Ethereum is one of the first representatives of the crypto market with its smart contract programmable platform. The network provides the infrastructure for cryptocurrencies and the core resources for building and developing decentralized applications. Furthermore, Ethereum has successfully created an open and profitable economy.
With its multiple applications and data-effective services, this decentralized network empowers accessibility to anyone around the globe, irrespective of location and background. Moreover, all the programs connected to Ethereum require intensive computing power and are supported by Ethereum Virtual Machine computations.
Ethereum operates with an unlimited supply, actively assisting the growth in demand for crypto assets and digital collectibles. As a result, it has become one of the first choices of service providers specializing in NFT marketplaces development.
Ethereum Blockchain Features Breakdown
Here let’s review the key features of Ethereum and see what it precisely offers.
Proof of Work
The Ethereum blockchain operates through a consensus mechanism known as PoW ( Proof of Work). It enables the decentralized blockchain network to agree by allowing one party to prove that a specific amount of particular computational effort has been consumed. Due to this mechanism, the users don’t need to spend ETH they don’t have and assure that the Ethereum chain’s security system is hard to manipulate or attack.
One of the distinguishing features of the Ethereum blockchain is its smart contract capabilities. Ethereum can support a variety of programming languages, which assist in deploying different smart contracts. In addition, the base programming language of the platform is the popular Solidity language, which is used for creating the codes of these contracts.
Ethereum and NFTs are two correlated terms that always go hand in hand. And even though the Ethereum platform wasn’t the first blockchain to provide and support NFTs, it became the most successful one among other blockchain options and is considered a go-to platform for NFTs and digital tokens.
At the moment, the Ethereum network can proceed with only 13-15 transactions per second. It means Ethereum lacks scalability, and the platform is not that great in this aspect compared to Solana. However, as the Ethereum Mainnet has a deficiency of scalability, later layer-two scaling features such as Validium and Polygon have been added. Furthermore, the founder of Ethereum also announced that the transaction speeds could increase up to 100.000 transactions per second without compromising the current security level with the platform’s upgrade.
General Introduction of The Solana Network
Solana is a high-tier name among decentralized blockchain networks. It was built to enable and upgrade the scalability of intuitive applications. And today, the Solana network is considered one of the rapidly growing ecosystems worldwide, with thousands of various projects spanning Web 3.0, NFTs, DeFi, and beyond.
Generally, the Solana blockchain is famous for its fast and low-cost transactions. Its scalability enables all transactions to remain below $0,01, and the transaction load goes up to 400 milliseconds per block.
However, Solanas isn’t flawless either. The security aspect of this blockchain network is lacking in several ways compared to that of Ethereum. For example, only in September 2021 did the platform go down three times because of the hacking attack. As a result, the entire system was down for almost 18 hours.
That being said, the Solana blockchain also has its share of pros and cons, similar to Ethereum.
Solana Blockchain Features Breakdown
We have already reviewed the features of the Ethereum blockchain earlier, so now it’s time to explore the aspects of the Solana network and find out the critical differences between them.
Proof of History
Unlike the Ethereum network that uses a Proof-of-Work for its activity, the Solana blockchain utilizes a PoH consensus ( Proof of History). Due to PoH, the platform can create a historical record that helps prove that an event has happened at a specific moment in time. Moreover, Proof of History uses a cryptographically secure function, which is written in a way, that output can’t be predicted from the input; instead, it should be executed appropriately to generate the output.
Fast Transaction Speeds
In this aspect, Solana indeed overshadows Ethereum. It is because the Solana network uses a centralized network to achieve efficient and fast transaction speeds.
The Solana blockchain utilizes a Tower Byzantine fault-tolerant, which helps to remove the need for nodes while communicating with each other in real-time, which leads to improved efficiency. At the moment, Solana can process over 50.000 transactions per second.
However, this positive trait comes with a considerable risk of safety incidents because of the lack of proper security measures.
The second well-known and efficient feature after the fast transaction speeds Solana is famous for so far is the enhanced scalability. The network is scalable at its core level, which means Solana doesn’t require layer-two solutions to improve scalability like Ethereum.
The technology behind the platform distributes data into smaller chunks, helping to transfer it across the digital ledger more efficiently. Moreover, Solana also uses a technology known as Sealevelwhich to process financial transactions across SSDs and GPUs, which can bring an efficient blockchain network if combined.
There is no exact answer to this question. If we consider the aspect of security, then Ethereum indeed is better. However, in terms of transaction speed and costs, Solana wins over Ethereum. So, the final answer depends mainly on the goals, objectives, and requirements of the user.
It’s not possible to exactly state whether Solana can surpass Ethereum or not. It depends on many factors and the future development process. Currently, compared to Ethereum, Solana lacks in terms of decentralized applications and DeFi ecosystems. However, the platform’s recent growth of projects shows a huge potential to evolve and bring new innovative solutions that may change the entire system and revolutionize the blockchain space.
This blockchain platform uses SQL protocol and other layer-one protocols. The Solana team combines the Proof of History and Proof of Stake consensus mechanisms to achieve better efficiency. In addition, the network offers multiple smart contracts for decentralized exchanges. However, they entail a significant risk compared to centralized exchanges as they don’t have a proper mechanism for recovering stolen or lost digital assets.
So before taking any investment advice, always do your own research, and check all the pros and cons of the network to avoid troublesome situations.
The Solana network implements a high-speed and permissionless layer one blockchain designed to facilitate decentralized application and the creation of smart contracts. It also uses network validators to address transactions with ledger maintenance. Moreover, it also supports an array of NFT platforms and DeFi ecosystem platforms.
The crypto space constantly introduces new and innovative blockchain networks for the crypto community members. However, the list of most popular blockchain platform options is not that long. So here, let’s review the three blockchain platforms that are considered to be the leaders of the blockchain ecosystem:
Ethereum: It is one of the most secure decentralized networks currently. Due to the decentralized nature of the entire network, its stateful architecture and transparent landscape, and the consensus mechanism of a virtual machine, client transactions are highly protected and safe. Also, Ethereum is the platform where more and more users store their cryptocurrencies, NFTs, and decentralized exchange markets. The only aspect it lacks is the transaction speed, which is lower than other options.
Solana: On the contrary to Ethereum, Solana is famous for its fast transactions and low-cost fees and prefers a stateless architecture. However, its security aspect has many vulnerable points and always entails a high risk of a service attack.
Polygon: The Polygon network is another giant in the blockchain industry. Its distinguishing feature lies in its provided interoperability with the present and future infrastructure situations for ETH. Moreover, it also offers interoperability with the new layer two solutions driving a new economy and borderless society.