There are many different types of blockchains for NFTs available today. While each offers certain perks, 2 of them are leading the way very fiercely. And so the whole Solana vs Ethereum debate gained momentum globally.
Some would say that Ethereum has peaked, and it is time for its downfall making space for Solana to take over as a more user-friendly option.
Thus, it is ideal to bid them against each other. In this analysis, you will get a full comparison between the two to know where you should invest next.
The Short Overview – Solana Vs Ethereum
If you’re looking for a short version, the difference is in the consensus mechanism.
Ethereum is all about proof-of-work (PoW) mechanisms. This leads to increased processing but a highly decentralized network. It ensures the best security protocols, which are not easy to hack into.
Meanwhile, Solana uses Proof-of-history (PoH). It records the history of everything on the blockchain, but that’s about it. This leads to higher speed and better transactions. But, there is a significant lack of security when compared to Ethereum.
As for the cost, due to high demand, Ethereum is far more valuable. At the time of writing this piece, 1 ETH was worth 2,017.68 USD, while 1 SOL was sitting at 51.5 USD.
Before getting deep into the Solana Vs Ethereum discussion, we’ll go over both briefly.
Ethereum – The Giant Of the Blockchain
If you’ve been an active participant on blockchain, you would know about Ethereum. Over 90% of all NFT projects exist on Ethereum. It is a community-developed blockchain that uses proof-of-work. More importantly, Ethereum has fantastic decentralization aspects.
However, it has notable drawbacks. For instance, high traffic results in slower transactions. The cost of these transactions also becomes significantly higher.
Now, developers are working on upgrading the Ethereum blockchain with layer-2 protocols. Which should decrease gas fees or transaction fees on Ethereum big time.
As it uses Proof-of-work, which ensures that a certain level of computing power was invested, Ethereum is able to maintain its value.
Ethereum is highly scalable, user-friendly and community-driven. You can mold the blockchain to use almost any project or application. Moreover, Ethereum offers smart contracts and phenomenal security.
Solana – A Hardworking Underdog Of the Blockchain Industry
Solana is growing in popularity with with every passing day. Many NFT projects are shifting to the Solana blockchain for the right reasons. It is faster with fairly affordable transaction fees. The transaction speed is phenomenal, making it easier for users to transfer anything.
Solana uses a proof-of-history mechanism that shows users specific data about the history of creation and ownership of an NFT.
Solana’s primary objective is to be user-friendly and highly scalable. As it already offers remarkable speed and low-cost transactions, there’s no need for layer-2 protocols.
Unfortunately, Solana is more unstable than Ethereum and it has faced significant downtimes in the past.
Solana offers up to 400 transactions per millisecond. The cost of transfer is around 0.01$, but it could vary.
A Fight Shaping The NFT Space
Now, let’s bid them against each other by considering various market aspects. The NFT world relies on multiple factors like scalability, transaction cost, number of successful NFT projects, etc. Here is a quick overview.
The Gas Fees
Gas fees are the major problem for anyone trading on the blockchain. Ethereum is known for being brutally costly. So much that an NFT transaction often costs way more than the actual NFT. The transaction time can also be exhaustive, even taking hours at times.
Succession Of NFT Projects
There’s no doubt that Ethereum has launched thousands of NFT projects. These range from Metaverse games to NFT art and PFP collections. Secondary marketplaces like OpenSea are also available on the Ethereum blockchain. So, it has a compelling profile of successful NFTs.
However, it also has equally bombing NFT projects. These failed miserably due to the shortcomings of the Ethereum. Solana has maintained stable growth in this segment. So, you could say it will be a victor.
Ethereum Downtime – The Bad News
Unfortunately, the recent Yuga Labs’ sale for Otherdeed NFT Lands exposed the weakness of ETH. It can’t withstand the traffic and has already faced something similar to a downtime. The transactions were extensively delayed and cost way extra.
This problem has led to the downfall of many NFT projects, including games, on Ethereum. They need to work on and implement the Layer-2 protocols faster to maintain dominance.
Lack Of Layer-2 For Solana
Solana is scalable and user-friendly, but it doesn’t show any need for layer-2 protocols. The time to shine is now for the Solana blockchain. Most other blockchains and NFT projects are busy adding burn mechanisms and layer-2 protocols. So, this seems like a great time for Solana to if Solana rises now, that is excellent news. Otherwise, it could fail and fall out of the league once layer-2 protocols arrive. To keep up with that, even Solana will need layer-2 upgrades, which could be revolutionary.
The Verdict – Solana Vs. Ethereum
According to the sources, once Ethereum launches the Layer-2 protocol, it can offer 100,000 transactions per second and will be able to reduce the transaction costs considerably. If that happens soon, Ethereum will get a stronger hold on the faster, Ethereum will reign supreme, and Solana won’t stand a chance.
However, Solana possesses a lot of untapped potentials and user-friendly scalability. If it improves security and works on layer-2 protocols, it can outmatch all the other blockchains.
For affordable or budget-friendly projects, Solana is a better choice. However, Ethereum shows us why it is the leading blockchain with its sheer dominance.