Is Solana The Real Etherium Killer?
If you're a crypto fan or investor, you've probably heard of Solana (SOL). Solana, the so-called killer of Ethereum, promises low transaction costs and high speeds. SOL has been a very trending topic in recent weeks due to rising prices. Over the past 24 hours, capitalization has increased by 35%, making Dogecoin one of the most valuable cryptocurrencies on the market.
Ethereum's main competitor has grown by more than 800 percent in the last two months. It's a growing ecosystem that has lived up to all expectations since July, and many analysts say growth will continue.
What is Solana (SOL)?
Solana is an altcoin created in 2018 by Anatoly Yakovenko. The first model was launched that year after living in San Diego at the time and was named after Solana Beach. SOL cryptocurrency was launched in March 2020 and has been named the world's fastest blockchain. From the beginning, Solana's goal was to get rid of Ethereum and its blockchain, which is now working very well.
Of course, there is much to be done to win Ethereum in court. The current market value of ETH is over $400 billion, which is eight times more than SOL.
Yakovenko claims that the technology for using the SOL token is different from the blockchain architecture. In a late 2017 book, Solana's White Paper, he explains how "Historical Evidence" technology works. This historical evidence leads to a greater number of operations (transactions) per second. When used on a gigabit network, Solana can handle up to 710,000 transactions per second. Also, the more users there are on the network, the faster the Solana network will run.
For developers and users, the transaction cost will remain below $0.01. The average cost transaction is only $ 0.00025, which is much less than the ETH network fee and can cost more than $ 50 per transaction. These are the main reasons why Solana's reputation has soared, and it will continue to grow.
Break The Record
Until July 2021, SOL was a relatively unknown cryptocurrency by the average of cryptocurrency investors. Since the start of the project, Ethereum has promised lower transaction fees and faster speeds, but the market has been worth $6 billion for some time. As of July 20, the market capitalization was $ 6.1 billion. So far, it has exceeded $41 billion, and some people hope the bull run will continue.
In early September, SOL's valuation rose by $56 billion, due to an 800% increase in value in two months. These results surpassed Dogecoin, becoming the seventh-largest coin in the market capitalization. Currently, the price is around $160, which is just a few percent lower than the $194 token price on September 7.
Thanks to this fame, the Solana hackathon will be held worldwide on October 5 and will award more than $ 5 million for the best projects developed on the SOL blockchain. Some of the sponsors include Standard Chartered, Jump Capital, and Microsoft, so it's backed by some of the biggest software giants, and that says something.
Is Ethereum A Killer?
All the noise surrounding SOL has led to comparisons with Ethereum. Many media outlets and experts call it the "Ethereum killer" and compete with other coins such as Polkadot or Binance Smart Chain. As a platform, Solana uses smart contracts like Ethereum, which addresses the scalability of both ETH and BTC.
Thanks to the PoS structure and the PoF (Historical Evidence) protocol, Solana validators process transactions in chronological order and hash them over time. This is usually done instead of waiting for the block to complete, which takes some time.
It also uses a unique block distribution protocol called Turbine, which breaks down data into bits and transmits it faster. It eats less bandwidth while maintaining and improving the features of other coins.
Most NFT is done on the Ethereum network, but Solana supports NFT and will get the NFT market cake. The current rise in NFT is one of the factors driving the rise in prices, and Solana's price is likely to rise further as more investors join the competition.
If it can live up to expectations by the end of the year, we might really see Ethereum's killer.