While experts predict that Ethereum (ETH) will overthrow Bitcoin (BTC) in the long run, some leading altcoin projects are also challenging Ethreum.
Solana (SOL) Competes with Visa and Mastercard!
Ethereum (ETH) is one of the most popular cryptocurrencies of the last two years and has many advantages. The Ethereum ecosystem has come into focus lately, thanks to decentralized finance (DeFi) projects, NFT markets, and decentralized applications (dApps). However, despite being the leading altocoin, the biggest issue with Ethereum is its speed. Currently, the network can only handle about 13 transactions per second. Lower speed also means higher transaction fees. As a result, developers and users flock to projects that rival Ethereum.
One such competitor is Solana, who shines in areas where Ethereum is underperforming. Like Ethereum, Solana can be defined as a smart contract platform that can host dApps. However, it has speeds of up to 65,000 per second making it one of the fastest networks available. Solana also recently introduced Solana Pay, its latest project, a decentralized payment system. Solana Pay allows businesses to accept cryptocurrencies as a form of payment. Its decentralized nature, no intermediaries, incredibly energy efficient, instant transactions and symbolically small fees make the system attractive. With Solana Pay, SOL not only competes in the dApp space, but also becomes a stronger payment mechanism. This kind of diversity could help Solana excel in many areas, potentially even competing with companies like Visa and Mastercard.
Analyst Reply: Why Solana?
According to experts, as the Ethereum ecosystem continues to grow, its price will become more expensive. If you’re looking for a more affordable investment with similar growth potential, there’s another altcoin to consider, according to Katie Brockman, an analyst at The Motley. Solana is one of the fascinating breakout stars of the cryptocurrency world. While the project has its downsides, SOL could possibly be the Ethereum of 2022.
However, security concerns have come to the fore lately. The network could become an even greater target for attacks as it scales, so Solana will need to work hard to avoid the risk of further attacks.