First cryptocurrencies the world saw were based on the Proof-of-Work mechanism, meaning that to receive one coin, advanced and high technological machines had to complete work and solve math problems. Such equipment costs a lot of money and consumes a lot of electricity, making the mining process more and more complicated over time.
The Ethereum network used to work based on the Proof-of-Work mechanism. Ethereum is a platform offering developers a full set of tools for building decentralised applications, NFT projects, and other products. Over time, the network started to be overloaded with the number of apps running on it. It decreased its throughput and increased fees. That was a prime time for another blockchain that offered the same functions but at much better conditions – Solana.
Solana came to solve all the problems that the Ethereum network had at that time:
- Solana network has a throughput of 65,000 transactions a second.
- Transaction commissions $0.00025
- Solana coin is not mined but staked, which is much easier, affordable to anyone, and does not require expensive equipment.
Solana is the platform where many DeFi and NFT projects are based. You can find many NFT collections based on this network, as well as some metaverses and blockchain games.
Let’s compare other features of these two projects.
Ethereum vs Solana
Here are some crucial factors to compare:
- As of mid-December 2022, the ETH price is $1,212, SOL coin costs $12.08.
- Initially, Ethereum ran on the Proof-of-Work mechanism, but it has recently switched to the Proof-of-Stake consensus. Solana runs on PoS with Proof-of-History.
- Solana has a lower memory consumption compared to Ethereum. Solana is much more scalable.
- Solana used more well-known programming languages such as Rust, C+, and C. Ethereum uses Solidity, Fe, Viper and others.
- Ethereum is more decentralised than Solana.
- Ethereum had much fewer downtimes compared with Solana. Solana, in turn, had many shutdowns connected with attacks.
- Ethereum performs up to 30 TPS, Solana – over 50,000 TPS.
However, since the Ethereum blockchain transitioned to the PoS protocol, its performance indicators are likely to improve in the shortest time, so these two networks will be equal in terms of throughput and transaction fees. Competition drives the crypto industry, making projects do their best to grow and offer better conditions for developers.
Both assets are traded on large crypto platforms such as WhiteBIT. You can also stake them and make a passive income.