Solana, according to Sam Bankman-Fried, the founder and CEO of FTX exchange, is better than Ethereum since it is one of the few blockchains with a plan for mass adoption.
Bankman-Fried has a net worth of $22.5 billion, thanks to his exchange and venture capital firms making him the second-youngest person to enter the Forbes rich list after Facebook CEO Mark Zuckerberg.
On Tuesday, he spoke at Yahoo Finance and Decrypts’ “Crypto Goes Mainstream” conference on how the Solana network’s primary advantage is its ability to manage a massive number of users and transactions.
“Solana is one of the few currently existing public blockchains that has a really plausible roadmap to scale millions of transactions per second at you know, fractions of a penny per transaction, which is a scale that you need for this.
That is not where a lot of other blockchains have been focusing, including ethereum.”Bankman-Fried said.
Solana was introduced in April 2020, and its token has increased by about 16,000 percent this year. Solana is presently the fifth most valuable cryptocurrency by market capitalization, with a market cap of $73 billion.
Ether, the ethereum network’s native token, was released in 2015, and has seen its value soar by over 500 percent to around $5,000 this year. The network is the second most valuable by market capitalization with a market cap of $519 billion.
Bankman-Fried said that a mass scale application network would need to be able to accommodate hundreds of millions to billions of users and transactions per second.
Solana is a peer-to-peer decentralised finance (DeFi) network that has been dubbed a “ethereum killer” due to its faster transaction speeds and lower fees when compared to its larger competitor.
Solana uses a combination of proof-of-stake (PoS) and proof-of-history (PoH) consensus techniques to improve performance and scalability.
The network can process 50,000 transactions per second with an average cost of $0.00025, making it the fastest and most cost-effective blockchain, whereas Ethereum can only handle 17,000 transactions per second at a cost of $5.80 apiece.