Solana has enjoyed strong adoption since launching in 2020 with its revolutionary technology, rising to become the fifth-largest cryptocurrency.
Capable of processing up to 50,000 transactions per second while Ethereum struggles at 15-45 TPS, Solana quickly earned the title of the Ethereum-Killer.
Solana combines Proof-of-Stake with Proof-of-History (PoH) to adopt a unique hybrid consensus algorithm – helping it achieve high throughput.
In a research note, the Bank of America (NYSE:BAC) explained to its clients that thanks to its “ability to provide high throughput, low cost, and ease of use,” Solana can become the “Visa (NYSE:V) of the digital asset ecosystem.”
Solana Outperforms Ethereum
The BoA digital asset strategist Alkesh Shah opines that Solana could grab market share from Ethereum because of its “high-value transaction and identity, storage and supply chain use cases.” In the future, the BoA believes Solana might one day beat Ethereum.
The BoA explained that the Solana blockchain is more optimized for consumer use cases such as micropayments and gaming than Ethereum. However, it adds that Solana is relatively less decentralized and secure.
Since its launch in September 2020, Solana has settled more than 50 billion transactions (Visa processed 164.7 billion transactions in the year ending September 30, 2021). Solana has been used to mint over 5.7 million NFTs and has over $11 billion in TVL.
On the Flipside
- Pantera Capital shares a different outlook on the future, projecting that Ethereum could facilitate 50% of all global transactions in the next 10 years.
Why You Should Care
Solana uses a new design (proof-of-history), and experts believe, if improved, could solve the scalability of digital assets.
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