In the crypto market, there are many different options to choose from. About 12 000 different crypto tokens developed on around 1000 blockchain platforms. But two of the most popular choices are Ethereum (ETH) and Solana (SOL). So, which is the better option? Well, Solana has been referred to as the “Ethereum killer.”
In this blog post, we will compare ETH and SOL to see which investment would be better for you. We will look at their respective prices, market caps, block sizes, and more. So, if you’re wondering which coin to put your money into in the crypto world, read on.
History
Ethereum: The history of Ethereum began in 2013 when Vitalik Buterin, a Russian-Canadian programmer, proposed creating a new platform capable of running decentralized apps. Buterin had been involved in the development of Bitcoin but became frustrated with its limitations. It’s a popular blockchain platform.
He believed that the technology of blockchain had much more potential than just serving as a digital currency. He then sat out to create a platform that would be able to do much more. Ethereum was officially launched on July 30, 2015, with 72 million pre-mined coins.
Solana: The history of the Solana network can be traced back to 2017 when its co-founders, Anatoly Yakovenko and Greg Fitzgerald, were working on a high-frequency trading platform. The team soon realized that the existing blockchain technology couldn’t handle the required number of transactions per second.
This led them to begin work on Solana, which is designed to be a fast, scalable, and secure blockchain protocol.
What Are They, And Why Were They Created?
The Ethereum Virtual Machine (EVM) and the Solana Virtual Machine (SOL) are both virtual machines that offer a way to execute smart contracts on their respective blockchains. The EVM is the runtime environment for smart contracts on the Ethereum blockchain, while SOL is the native machine for the Solana blockchain.
Both the EVM and SOL were created in order to provide a more efficient way to execute smart contracts on their respective blockchains. Ethereum uses a consensus mechanism called PoW.
On Solana, each node follows instructions as soon as they are added to the digital ledger. Solanas blockchain runs on a consensus mechanism called Proof of history.
Price History
Ethereum: Ethereum was first launched in 2015 and quickly became one of the most popular cryptocurrencies. It reached its all-time high price of $1,422 in January 2018 before crashing back down to around $100 in 2019. However, 2020 has seen Ethereum make a strong comeback, and it is currently trading at around $1240.84 (at the time of writing).
Solana: Solana was launched in 2017 and has also seen its share of ups and downs. After hitting an all-time high price of $12 in April 2021, it has since pulled back to around $14.12 (at the time of writing).
Market Cap
Ethereum: At the time of writing, the market cap of Ethereum (ETH) is approximately $155.58 billion.
Solana: The market cap of Solana is approximately $13.5 billion at the time of writing.
Daily Transactions
Ethereum: The average transaction fees for Ethereum are $0.21. This figure can vary widely. This will depend on the blockchain that you are using and the demand for block space at the time. The transactions per day are currently $1.049 million.
There are a few things to consider when looking at the two platforms. First, Ethereum has been around longer and is more established. It also has a larger community and more developers working on it.
Solana: The average transaction fees for Solana is $0.000021. This means that Solana is 1000 times cheaper to use than Ethereum. Solana is a high-performance blockchain that is being developed to solve the scalability issues of current blockchains.
Solana is being built from the ground up to be a scalable blockchain that can support tens of thousands of transactions per second.
Block Size
Ethereum: The Ethereum platform currently has a block size limit of 8 megabytes. This means that each Ethereum block can store up to 8 million bytes of data.
Solana: Solana’s smaller blockchain size also means that it can’t handle as much data as Ethereum can. The block size on Solana is 1oMB, which is much larger than the block size on most other blockchains.
Similarities
- Both Solana and Ethereum use proof-of-stake consensus mechanisms and have their own built-in programming languages.
- Both Solana and Ethereum platforms allow developers to build decentralized apps(DApps).
- Both Ethereum and Solana are Turing complete, meaning they can support any type of computation.
- The Ethereum platform and Solana both aim to provide scalable blockchain solutions that can support a large number of transactions per second (TPS).
Differences
- Ethereum is a decentralized platform. It runs on smart contracts, which are applications that run exactly as programmed. This is done without any possibility of fraud or third-party interference.
- Solana is a high-performance blockchain that enables developers to create scalable decentralized applications.
- Solana uses a unique architecture called Tower BFT, which allows it to process up to 65,000 transactions per second. Ethereum can currently only handle up to 15 transactions per second.
- Ethereum has been around for longer and is more established than Solana. It has the largest developer community and the most active ecosystem of projects built on top of it.
- When comparing Solana to Ethereum, Solana lacks the adoption of the Ethereum network.
Risks
Ethereum: There is a risk that the Ethereum network may become congested and expensive to use if it continues to grow in popularity. There is a risk that the value of Ether could drop if the demand for it decreases. The network could be hacked, which could lead to the loss of Ether or other assets stored on the network.
Solana: The price of Solana could go down as well as up. This means that you could lose money if you invest now and the price goes down. Solana is a new cryptocurrency, and so it is not yet as established as some other more well-known coins. This means that there is more risk involved in investing in it.
Where to Buy
Ethereum: For Ethereum, popular options include Coinbase, Kraken, and Binance.
Solana: There are a few different places where you can buy Solana, but the most popular option is definitely Binance. Another option is KuCoin, which is also a very popular cryptocurrency exchange. You can also purchase Solana directly from the team through their website.
Exchanging Ethereum For Solana
When it comes to exchanging Ethereum for Solana, you have a few options. You can use a traditional exchange like Binance or Kraken or a decentralized one like Uniswap. Let’s take a closer look at each option.
Traditional exchanges like Binance or Kraken offer a variety of features. This includes customer support, security, and liquidity. However, they also require you to go through the KYC (know your customer) verification process to trade.
Decentralized exchanges like Uniswap don’t require KYC verification. This makes them more private. They may be less user-friendly and have lower liquidity than traditional exchanges.
So, which option is best for you? It depends on your needs and preferences. A decentralized exchange is probably your best bet if you value privacy and convenience over everything else. A traditional exchange is probably your best choice if you want the most user-friendly experience and access to the widest range of features.
Future Plans
Ethereum: Ethereum (ETH) has been the leading smart contract platform for some time now. However, it faces stiff competition from Solana, which is a newer platform that promises faster transaction times and lower fees.
ETH is planning to upgrade to a new version of its software, Ethereum 2.0, in 2023. This upgrade will make the network more scalable and efficient. ETH plans to launch a new programming language called Solidity.
Solana: Solana, on the other hand, is planning to launch its own mainnet in 2021. This will allow SOL to process transactions much faster than ETH can currently handle. In addition, SOL plans to offer staking rewards to users who hold their tokens in an SOL wallet.
FAQs
Is it better to invest in Ethereum or Solana?
When it comes to Ethereum and Solana, both have their pros and cons. Ethereum and Solana are both blockchain platforms that offer a variety of features and benefits. Both platforms are popular among investors and developers.
Is Solana better than Ethereum for NFTs?
Overall, Solana seems like a much more user-friendly platform for NFT development.
What is the main difference between SOL & ETH?
The main difference between SOL and ETH is that SOL is a cryptocurrency while ETH is a blockchain platform. SOL is a decentralized currency that can be used to purchase goods and services. ETH, on the other hand, is a decentralized platform that allows developers to create decentralized applications.
References:
https://fortune.com/2022/04/14/who-is-anatoly-yakovenko-solana-labs-building-web3/
https://learn.figment.io/tutorials/explaining-solanas-innovations-without-technical-jargon
https://bitkan.com/learn/how-many-transactions-per-second-ethereum-what-is-the-tps-for-eth-2698
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