Updation on Ethereum blockchain has given fresh weapons to new cryptocurrencySolana for challenging a much popular crypto and replacing its place or position of pride.
It’s update is named as ‘ London Hard Fork’ based on Ethereum blockchain, wherein it holds five Ethereum improvement proposals (EIPs).
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Ethereum Mining
Miners of Ethereum were rewarded with brand new coins, each time they validate a block. But they get compensated with the transaction fees which was paid by its users. No limit was set for mining with Ethereum and the problem of paying transaction fees would be fixed by London Hard Fork, where this issue of receiving transaction fees would be fixed.
Effects of Upgradation
The upgradation of Ethereum would improve Ethereum blockchain and the manner in which it is being priced as limitations would be there on supplies. The consequent effect of it, would be to have increased transaction speed per second, which would thereby reduce fees and would provide lesser congestion.
Therefore, its consequent effect would be on the miners cause a portion of fees would be burnt which is generated on blockchain and this would gradually reduce revenue thereby, migrating few of them. Here ‘Solana’ would be upmost benefited from migration as transactions could be processed by it at a faster rate, even when compared with upgraded Ethereum.
Solana isn’t prominent successor alone cause it is having many other competitors as well like Cardano, Algorand, Tezos and Polkadot, etc. as mentioned by Crypto experts. As Solana was launched in April 2020 so it is not so developed but has gained attraction and its USP is large transaction speeds on the blockchain network with low fees.
Since crypto has made its place in the market, means since its start it has surged to 4500% and in 2021 till now, the return of this token has been 2200%. At present it is holding value of $34.5 which is 40 per cent down to its value, it was having in May 2021.
Features of Solana
Yes the most prominent competitor of Ethereum is Solana as Solana’s transaction speed and scalability are high which make it different from other cryptos. In addition to this it is also having capacity of holding more than 50,000 transactions per second, making it cost efficient also. Although comparison was made between Internet Computers(ICP) and Solana, but drop down of prices of ICP recently and rumours of dumping it by its founders had lowered the moral of various ICP investors. This was the reason why many of the investors had switched to Solana.
Even the crypto guru (Hitesh Malviya) was in favour of Solana blockchain.
In addition to Solana’s individual features; fundraising will give a spark to the price of this token and that has effected it with a rise.
Ethereum vs Solana
Ethereum and Solana have diffferent blockchain technology. Ethereum is community based technology-powered cryptocurrency and on the other hand Solana is for those investors who desire secure, fast and censorship resistant blockchain which entails open infrastructure.
Ethereum integrates with more than 88 softwares whereas Solana doesn’t supports integration with Meta mask, Binance smart chain, Rarible and various other services.
Basic difference as discussed earlier between them is, transaction per second and cost efficiency. This makes them different from each other at basic ground.
Conclusion
The most challenging crypto for Ethereum is Solana as it is having the potential of making it big play and taking the place of Ethereum by becoming the preferred blockchain amongst DeFi applications and NFT offerings.
Although Solana is having superior technology but it’s still in initial phase for adoption by many, despite of the fact that Ethereum is having network congestion issue, also higher transaction fees and also unable to meet the demand of DeFi products.
But inspite of all such features, Solana would face certain problem in replacement with Ethereum as the latter is already having a static hold over the market. In addition to this Ethereum is also having higher brand recognition.
People are rigid with adaption of new technology and this is also a reason why Solana won’t get acceptance soon by people.
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