When smart contract platforms are being listed, it goes from Ethereum to Solana before you name the others. However, if you are looking for the better one between the two, read this.
Ethereum blockchain is the brainchild 9f Vitalik Buterin. It was launched in July 2015 to rival Bitcoin. Unlike Bitcoin, it came with a lot of pros; one was being the first blockchain that supported smart contracts. Like Bitcoin, it operated on the proof-of-work consensus algorithm.
Solana, on the other hand, was just launched in April 2019 by Anatoly Yakovenko. Like Ethereum, it has smart contract functionality. However, it operated on proof-of-stake and proof-of-history consensus algorithms.
Although Ethereum blockchain made non-fungible tokens possible, they now exist on the Solana platform. Both blockchains are capable of doing almost the same thing, from NFTs to DeFi, DAOs, dApps, and so on. They are both in the top ten cryptocurrencies by market cap.
The edge Solana has over Ethereum is its speed and scalability. It can process over 50,000 transactions per second with 400ms block time. Ethereum still does between 15 and 45 transactions per second.
Its high throughput allows its transaction fees to be lower, way lesser than that of Ethereum. Also, it is 4000 times faster than Ethereum and requires no layer-2 scaling solutions. However, Ethereum has been in the market long enough that it is predictable and somehow has a stable stance.
While it is still faced with the blockchain trilemma, plans are in place to address it. Eth2 upgrade that would see it switch to proof-of-stake consensus algorithm is already in place. This would upscale it and set it up to function as a multi-chain for other platforms.
Right now, 1 ETH (the native token of Ethereum) is worth $2,468 with a market cap of $294.1 billion, and 1 SOL (the native token of Solana) costs $92.12 with a market cap of $29 billion. Asides from this, Ethereum exerts the first-mover advantage over Solana and its peers.
However, SOL still has enormous room for growth. With such a low market cap for such a high-performing blockchain, the more use it gets, the more its value will increase. For a coin that rose from around $50 to over $250, it can do better. Solana is the best buy right now. But before you go ahead and buy, don’t forget to conduct your research and deal wisely.