Ethereum has been ranked as one of the top blockchain platforms since the beginning of its launch. But with the rise of popular blockchain Solana which is considered the "Ethereum killer" by the crypto world, Ethereum found its top place in jeopardy. Both networks are intriguing because of their diverse ecosystems and unique characteristics. But can we make a detailed comparison between them to declare which is better?
In this article, we have done just that and highlighted the key differences between them. But first, we need to have an idea of what Ethereum and Solana are.
Ethereum is the world's first configurable blockchain which uses its all-purpose smart contracts feature to let developers create decentralized applications. Ethereum was created with the goal of supporting a wide range of specialized applications. The proof-of-stake (PoS) change that Ethereum is presently experiencing will help the network in several ways, notably by reducing carbon emissions
Solana offers a platform for decentralized applications and non-fungible tokens (DApps). Digital artists like 3D animators and VFX creators are really excited about these digital replicas of collectible goods like artwork.
Solana was created to address the scaling issues that the Ethereum blockchain was experiencing. You can read more about Solana blockchain here
Ethereum 1.0 uses the Proof-of-Work(PoW) consensus algorithm. Thus, miners—who employ their computing power to verify blockchain transactions and create new blocks can protect the network. On the downside, PoW's limited transaction speed is a significant barrier to a decentralized network's ability to expand.
The use of Proof-of-History(POH) (or as we call Delegated Proof-of-Stake) distinguishes Solana from Ethereum. To put it simply, figuring out the cryptographic interval between two events necessitates a variety of computational procedures. By adding dates and times to transactions, users can keep records of the chronology in which they were completed.
The overall purpose of decentralization is to dismantle any systems that are significantly influenced by a person or group. Moreover, Power abuse can be avoided, and endurance is increased. As of now, Ethereum is more decentralized compared to Solana.
Ethereum has always focused heavily on decentralization while Solana uses a system in which the most important stakeholders also get the biggest rewards. Governance in Solana may be centralized as a result of this "rich grow wealthier" strategy.
This is an essential segment because most users don’t like paying transaction fees. Solana is renowned for having reasonable transaction fees.
On the Ethereum network, the standard gas fee as of July 2022 was 3 Gwei ($0.09) whereas the cost of gas in Solana is currently 0.0000053 SOL ($0,0000014) per transaction. Compared to Solana, Ethereum has a greater transaction cost.
The largest smart contract support system is Ethereum. Popular sources claim that Solana's TVL(Total Value Locked) is only $2.54 billion while Ethereum's TVL has reached $53.21 billion.
Ethereum 1.0 is capable of 30 TPS whereas Solana has a processing capacity of more than 50,000 TPS. Thus in terms of processing transactions, Solana is totally clear of Ethereum.
Some of the most popular DeFi apps, like MakerDAO, Lido, and Uniswap, use Ethereum as their primary network. It has an upper hand in this section although Solana has issued a series of marketing initiatives, including hackathons and bug-bounty events, in an effort to draw new programmers to the network. Solend and Raydium are two of the DeFi apps most commonly used on Solana.
The native currency of both Ethereum and Solana are needed to pay the transaction fees in the digital space. Ethereum’s token is known as ETH while SOL is Solano’s native currency.
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