Can Solana live up to its title of “Ethereum Killer”? Let’s see.
Ethereum has always been the go-to DeFi platform for investors over the years. But its high gas fees and less energy efficiency have made investors look for an alternative option. Although several coins have given it tough competition in the market, the crypto that would likely be Ethereum of 2022 is Solana.
Solana is arguably the most popular cryptocurrency with strong potential for growth. In early 2021, SOL was just one among several dozen altcoins buoyed by a bullish crypto market. But a few months later, SOL started rising high, garnering investors’ attention worldwide and being taken seriously as a challenger to Ethereum.
Key Points
- Solana’s third-generation blockchain architecture helps in simplifying the development of decentralized applications.
- The Solana ecosystem facilitates the working of multiple smart contracts at the same time.
- Solana has solidified its position as the best go-to smart-contract platform for NFTs, gaming, and DeFi.
How Does Solana Compare To Ethereum?
Solana has been the best performing crypto in 2021 and could be the Ethereum of 2022.
Solana performs similar functions to Ethereum and offers many of the same features. The emphasis is on the facilitation of smart contracts. Currently, the biggest problem that plagues Ethereum is speed and higher transaction fees. Solana leverages Ethereum’s slower network and achieves efficient transaction speed by utilizing a centralized network.
Crypto enthusiasts believe that Solana could be the Ethereum of 2022 as it has a technical advantage in transaction speed. Ethereum can currently process 14 transactions per second (TPS), whereas SOL can support 50,000 TPS, and the developers are working continuously to enhance the speed. It offers the fastest blockchain network with nominal transaction fees, which is why developers have been flocking to the network. The crypto also offers vastly superior scalability.
With its Ethereum 2.0 update, Ethereum would convert from a Proof-of-Work consensus algorithm to a Proof-of-Stake making it highly scalable and less energy efficient. But since the update is still in the pipeline, SOL has the edge on transaction speeds and costs.
The Solana network also employs a unique Tower Byzantine fault-tolerant (BFT), which removes the need for nodes to communicate with each other in real-time. This eventually results in improved efficiency. The network also uses a Proof-of-History (PoH) consensus mechanism that allows the Solana network to create a historical record. It proves that an event has occurred at a specific moment in time and secures the network.
Solana is also most widely used for decentralized applications (dApps), including decentralized finance projects and non-fungible token (NFT) marketplaces. Solana, like Ethereum, offers a basis for non-fungible tokens with digital versions of collector's items, like artworks. This has generated great excitement among digital creatives like visual effects artists and 3D modelers.
Crypto assets are a highly volatile unregulated investment product.
Why Choose Solana?
Thanks to applications coming to the blockchain in 2022, Solana could be a good buy for future returns.
Solana is built with the goal of enabling the scalability of user-friendly applications. It is a high-performance decentralized blockchain with one of the fastest-growing ecosystems, with thousands of projects spanning DeFi, NFTs, Web3, and beyond.
Moreover, the Solana crypto computing platform was initially developed to achieve fast transaction speeds while also preserving scalability. As a result, anybody can use Solana’s open-source, high-performance, and permissionless platform to construct crypto applications.
Yet another reason why experts say that this crypto will be the Ethereum of 2022 is that it has jumped on the bandwagon to have a share in the NFT market. Since the NFT industry has gone wild over the last year, the market has become a high-growth industry opportunity followed by epic sales hosted by eminent digital artists. As a result, Solana is gaining its market share, leveraging this expanding industry with Solanart, the NFT marketplace running on the network. One key feature that makes Solana the best buy for NFT fanatics is the platform’s minimum fees and transaction speeds.
Read Also: Solana (SOL) Price Prediction
Should You Invest In Solana Right Now?
Thanks to its rapidly growing ecosystem, Solana could be the Ethereum of 2022.
Solana could face stiffer competition in the future, especially as Ethereum completes its upgrade. But the team behind Solana is also working continuously to enhance its network fundamentals, eventually driving adoption. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale and promote mass adoption.
Moreover, Solana’s innovative hybrid consensus model makes it feasible for both small-time traders and institutional investors to enjoy the platform equally. Adding to its popularity, Solana has introduced a new, decentralized, peer-to-peer payment platform called the Solana Pay, making SOL one of the best cryptos to invest in now. Solana Pay offers merchants a simple framework to process transactions directly to consumers for low cost and no middleman.
However, with its plans to capitalize on the growing play-to-earn market, Solana looks all set to begin its bullish rally in 2022, placing a greater focus on NFT-based gaming.
Crypto assets are a highly volatile unregulated investment product.
The Bottomline
The Solana crypto will be the Ethereum of 2022 as it is all set to mature into a fully-fledged ecosystem, with GameFi taking center stage in their plan. Given Solana’s low transaction costs and fast transaction speed, the possibilities are limitless for developers to build new applications on top of the Solana blockchain.
Solana’s consistent growth and market potential differentiate it from the other cryptos in the market. However, every investment journey is unique, and when deciding which blockchain is better, Ethereum or Solana, it partly depends on your personal goal.
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Open an account with eToro, deposit some funds with USD, and finally – buy Solana from just $10.
Virtual currencies are highly volatile. Your capital is at risk.
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