How Do Ethereum and Solana Differ?
The mechanism of block validation used by Solana and Ethereum differs significantly. While Ethereum continues to employ the PoW consensus mechanism. Which must process blocks one at a time, Solana uses PoH to achieve concurrent consensus. Solana transaction fees are currently less than $0.01, while Ethereum transaction fees are approximately $14.
The Ethereum 2.0 version is anticipated to be able to attain up to 100,000 TPS. Despite Solana currently having a huge advantage in terms of TPS (65,000 to 15). Given that the launch of Ethereum 2.0 has previously been postponed for years. It is unclear when the Ethereum network will switch entirely to proof-of-stake (PoS).The amount of Solana in circulation rises over time since it is an inflationary asset.
With well-known projects like Uniswap (UNI), Curve Finance (CRV), and OpenSea, the biggest NFT market in the world. The DApp ecosystem on Ethereum is quite developed. The total value locked (TVL) in Ethereum DApps is currently $121.3 billion, by far the greatest amount in the entire globe.
In contrast, the Solana DApp ecosystem is still in its very early phases, with only two projects having a combined amount over $1 billion. Raydium, an automated market maker (AMM) created to give traders more liquidity, is the biggest DApp on Solana.
Several media sources misread the Nansen analysis agency’s data. This is when they reported that Solana surpassed the Ethereum network in terms of transaction volume in Q2 2022. first, let’s look at the scale. Divided between 100,000-unit intervals for Ethereum and 5,000,000-unit increments for Solana. Evidently, Nansen made the decision to forego the possibility of the information being misunderstood.
The Solana network had more activity than Ethereum
Solana surpassed Ethereum in terms of transactions back in August 2020. There is a vast gap between them in terms of throughput. ETH can only handle a maximum of 20 transactions per second (TPS), whereas Solana can easily handle over 3000 TPS. It’s also important to note that the pace of the network hardly changed when ETH switched to the proof-of-stake system. Scaling won’t be possible till later versions. Therefore, from a practical standpoint, Ethereum’s Merge didn’t provide any fruitful outcomes. Users pay 500 times more overall to use ETH than Solana due to the disparity in fees.
Solana’s speed and decentralization earned it the moniker “Ethereum killer” at one point. If it weren’t for recurring failures brought on by internal issues or DDoS attacks. Which had an interesting impact on the perception of the coin. The network would already be further up in the overall rankings. The company’s minimal fees proved to be a double-edged sword. Since Ethereum continues to be the most reliable blockchain that supports smart contracts, many projects have already indicated that they would support it in the future. The company behind the well-known collection of Bored Ape Yacht Club NFTs, Yuga Labs, declared that Ethereum is the only network where it will publish its upcoming creations. But more and more fresh initiatives and artists are picking Solana. In September, Solana exceeded the previous record for weekly NFT transactions with more than 842,000.