The search for a good and efficient blockchain network, whether Ethereum vs. Solana or any others, can often be challenging. Each blockchain out there has its pros and cons. Whether it be the number of transactions they can complete or the low cost of transactions. Solana vs. Ethereum are the two most popular blockchain networks that investors often debate between. What are their differences and similarities?
What is Solana?
Solana is a high-performance blockchain system. It is to enable the scalability of user-friendly applications. In addition, it is a fast-growing ecosystem with projects from Defi to NFTs, Web3, and more.
The Solana blockchain technology is known to complete transactions speedily with minimal transaction fees. Transaction fees cost under $0.01 in 400 milliseconds per block. This is not to say that Solana is the best or the fastest blockchain because it also had a rough patch. In September 2021, the network crashed close to three times due to a hack in the system. It was causing 17 hours of the entire network to shut down. A recent crash resulted in a Solana bridge to the Ethereum network hack, which cost the blockchain $320 million of stolen assets.
Proof of History (poh)
The Solana network uses the PoH consensus. The Solana network can create a historical record that proves an event occurred at a specific point in time by using PoH. PoH utilizes a cryptographically secure function written so the outcome cannot be taken from the input. It must be done in the right way to get the correct output.
A centralized network achieves the transaction speeds on the Solana network. This brings with it certain risks that we discussed above.
In addition, Solana uses a Tower Byzantine fault-tolerant, also known as (BFT). Using BFT makes no need for nodes that communicate with one another. This brings with it improved efficiency, which is a great plus. As of right now, Solana can process 50,000 transactions a second.
The Solana network is entirely scalable; this means it does not require layer-two solutions to increase scalability. The Solana network has a method of technology behind it that makes the blockchain what it is. The technology breaks down its data into smaller sections to make it easily transferable.
What is Ethereum?
Ethereum is a community-built technology that stands behind the original crypto ETH, in addition to many applications we use daily. The unique thing about Ethereum is that no matter where you are, you have open access to digital money from their network.
Although Ethereum lacks speed and reasonable transaction fees, it makes up for it with decentralization. Layer-two solutions help provide enhanced scalability and throughput to compensate for the loss of scaling features at the core of its blockchain.
Ethereum uses a Proof of Work (pow) mechanism. PoW allows the decentralized Ethereum network to agree that one party will prove to another that a computation effort is being expanded. How does this help the network? This prevents users from spending ETH that they do not have and makes the Ethereum chain nearly impossible for hackers to attack.
Smart contracts on the Ethereum blockchain are very common. It can support a range of programmability, which helps develop various types of smart contracts. Solidity is Ethereum’s base programming language, and it is used to code these smart contracts.
Ethereum lacks scalability, and therefore the network can only process a maximum of 15 transactions per second. To aid in the lack of scalability, they have added layer two scaling solutions such as Polygon or Validium.
Furthermore, once Ethereum upgrades, the Ethereum creator said that transaction speeds could reach 100,000 transactions per second (tps) with the same level of security.
The Ethereum blockchain has been one of the most successful for NFTs. Even though many blockchains include NFTS, Ethereum is the go-to.
Now that you have read and understood what the two blockchains offer, you can decide which one is better for your purpose. Solana vs. Ethereum have their pros and cons, and we hope you can now decide which blockchain is better for you and why.
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