Who do you think would win a WWE Lethal Lockdown Cage Match if Ethereum and Solana were professional wrestlers? Today, we compare Solana to Ethereum, the main challenger and possibly Ethereum’s killer, to determine which is superior. So, I’ll lay out all of the facts, and you’ll be the judge. Isn’t that correct? Let’s get started.
THE CASE FOR ETHEREUM
Generally, people prefer to work with things that are proven and time-tested. Ethereum is one of the proven blockchains with many users and is compatible with other applications or programs. Ethereum is the main stuff here because it has a broader community than Solana.
Unlike Solana, it is compatible with a broader range of applications which makes it the preferred choice for many developers. It is also the blockchain’s token Ether that most NFTs use for transactions, raising its demand. That means that the possibilities with Ethereum are endless.
Due to the age and subsequent wider community of Ethereum, it is a proven blockchain in the crypto world. Though Solana is not proven yet, it sure has recognition. One of the new foci of blockchains is smart contracts. Both Solana and Ethereum are used in the creation of smart contracts.
However, due to the bases of Ethereum’s programing language, Solidity, which is more compatible with several other applications and programs, it can support a significant number of programs. This rapport makes it easier to use Ethereum to create smart contracts. [That’s not all. The Ethereum blockchain is awaiting an upgrade that will make its performance go through the roof. More on that shortly.]
WHAT’S THE CASE FOR SOLANA?
Every blockchain uses a particular mechanism of consensus in its dealings. Ethereum uses Proof of Work (PoW), while Solana uses Proof of Stake (PoS) and Proof of History (PoH). Solana’s PoH cryptographically establishes the passage of time between two events with the available facts.
Ethereum’s PoW requires witnesses and miners to agree to a time for a transaction to take place. The up and down involved in the PoW makes the transaction rate in Ethereum much slower than in Solana. Ethereum has Miners and Solana, Validators.
As a result, the latter requires less energy and is more efficient than the former. The mechanism of Solana makes people argue for its decentralization and the blockchain. They may have a point, but what is your take on this? [How would you feel if you had to pay a fortune to perform a transaction on the Ethereum network? The Ethereum gas fees are now officially more expensive than a vintage Ferrari, no kidding.]
The cost per transaction is a concern to many users in the Ethereum community, and many have raised concerns. In 2021, when NFTs boomed, Ethereum got overwhelmed by developers, but the high cost per transaction made the developers seek better options with a low transaction cost. [Anyway, the costs seem not to deter some users because the total value of the blockchain is growing exponentially.]
Solana, however, has a relatively negligible transaction cost. No blockchain has as low a gas fee as Solana. The gas fee on Solana is so tiny a 2-year-old kid can pay. Many developers then moved on to Solana. Solana doesn’t just have a low gas fee, and it is highly scalable. Scalability is one primary concern of blockchains, but Solana showed up one day with its solution in hand. Just like that.
In addition, Solana uses Gulf Stream, which contributes to its scalability. It pushes transactions to the edge of the network and enables validators to carry out transactions even before the specified time. So as Ethereum could do a maximum transaction of 30 transactions per second, Solana could stretch to 65,000 transactions per second.
Compared to Solana, Ethereum loses the speed and overall cost of transactions, but it compensates with its mature decentralization. The Layer-two solutions will help provide better scalability and throughput to compensate for the lack of scaling capabilities at the heart of its blockchain. It appears the issue of scalability was intense just to prove a point. Because in the words of Ethereum’s co-founder Vitalik Buterin [“You can think of Ethereum 1.0 as a prototype. We had to release something that we knew wouldn’t be scalable to prove you could build decentralized applications.”]
THE MARKET CAP WAR
This wouldn’t be a true comparison article without a popularity fight between Solana and Ethereum. Ethereum currently has a market capitalization of about $253 billion, whereas Solana has a market capitalization of around $18.8 billion, indicating that Ethereum is the clear winner in terms of popularity and market capitalization.
In addition, the NFT community prefers Ethereum over Solana, given that most prominent NFT projects are now running on the Ethereum blockchain.
In the end, both Solana and Ethereum have their benefits and drawbacks. So, if you’re having trouble determining which blockchain is best for you, consider your objectives first. Try both if you’re still stumped because these blockchains glory in their respective domains.
So, if the argument were about which is better regarding smart contracts, usage, compatibility with other programs, or more secure, Ethereum would be pronounced the winner. If it were about scalability, transaction cost, or transaction rate, though Ethereum is working on an upgrade that appears to overtake Solana, Solana would be wearing the golden crown now. I hope you enjoyed this article.
Disclaimer: Please keep in mind that I am not a financial advisor. I’m only giving my personal experience and thoughts. All strategies, ideas, suggestions, and recommendations offered are exclusively for the purpose of entertainment and education. Investing comes with certain financial risks. You must undertake your own research and due diligence, and if required, seek the assistance of a professional adviser.