Solana Was Predicted to Become the Visa of Crypto

Solana blockchain received high praise from Bank of America digital asset strategist Alkesh Shah in his recent research note from Jan 11. Shah has predicted that Solana could easily bite off a fair market share from Ethereum due to its high-speed and low-cost transactions. 

“Its ability to provide high throughput, low cost and ease of use creates a blockchain optimized for consumer use cases like micropayments, DeFi, NFTs, decentralized networks (Web3) and gaming,” Shah wrote in his note, as cited by Business Insider.

The researcher claims that Solana may become the “Visa of the digital asset ecosystem”. The processing speed on Visa is around 1,700 transactions per second (TPS), whereas Solana has a theoretical limit of 65,000 TPS. Meanwhile, a highly secured and decentralized Ethereum blockchain can handle 12-15 transactions per second and such a low throughput pushes up the gas fees that users need to pay on the network – as high as two-digit numbers in dollar equivalent.

Alkesh Shah also commented on recent security issues Solana went through, concluding that as long as Solana prioritizes scalability, its network stays relatively less decentralized and secure. This approach, according to Shah, has tradeoffs, illustrated by several network performance issues since inception.

Alongside Solana, the BofA researcher also mentioned other Ethereum competitors, namely Avalanche, which in his words “attempts to find a middle ground” between Ethereum’s security and Solana’s scalability. 

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