Solana and VISA: What They Have in Common

Jan 19, 2022 | Crypto, News | 0 comments

Solana and Visa

According to Bank of America, the Solana blockchain could become the “Visa’’ of the digital ecosystem. The technology behind it has scalability, low transaction fees and it’s easy to use.

The project is booming since its launch in 2020. There are more than 50 billion transactions registered since it was released; for comparison, Visa, one of the biggest payment networks in the world, registered almost 165 billion transactions in one year!

solana

There’s more: Solana has something around US$ 11 billion in locked digital assets to make its blockchain even faster and more secure.

The project is aiming at non-fungible tokens (NFTs). There are millions of tokens currently in circulation.

Customer care

Crypto projects can’t reach the masses if they aren’t sufficiently user-friendly and intuitive. According to Alkesh Shah, an analyst from the Bank of America, Solana is optimized for that matter, too.

Developers can take advantage of these facilities and implement them in gaming projects that involve micropayments of any kind.

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But not everything is working like a charm, it seems. According to Shah, “Solana prioritizes scalability, but a relatively less decentralized and secure blockchain has trade-offs, illustrated by several network performance issues since inception”.

Indeed, Solana is sometimes facing some performance issues — but that’s what usually happens when a promising project starts to boom. In any case, Shah believes that the advantage in using Solana outweighs its disadvantages:

“Its ability to provide high throughput, low cost and ease of use create a blockchain optimized for consumer use cases like micropayments, Defi, NFTs, decentralized networks (Web3) and gaming.”

Solana x Ethereum

Ethereum is expected to release its 2.0 update in 2022 since the testnet is already running with their new consensus (Proof of Stake). At its current state, however, Ethereum is facing a lot of issues like network instability and incredibly high gas fees.

On the other hand, Solana doesn’t face as many performance issues as Ethereum and it’s been successful in granting low transaction fees.

Both platforms have incredible features that make each one of them shine in different places. Users focused on decentralization are most likely to go on Ethereum. Solana is much more scalable and cheap.

In short, Ethereum is a much more developed blockchain ecosystem and Solana is a new project with faster and cheaper transactions. Now, Solana can make up to 50k transactions per second; Ethereum is expected to support up to 100k transactions per second when the 2.0 update is finally released. At its current state, it can’t stand against Solana regarding that matter.

Both platforms have their strengths and weaknesses — so it’s up to you to choose.

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