Can Solana become the next Ethereum?
November was a mixture of cryptocurrencies. The industry soared in the first half of the month, then returned most of its profits, with a market capitalization of about $ 2.5 trillion. Meme coins like the Shiba Inu (up 40% in November) are less important. And investors need to look for assets with technological benefits to sustain long-term growth. Find out why Solana (SOL 9.12%) can take the bill and make huge profits after December.
Why to chose Solana?
Founded in early 2020, Solana has grown by about 25,000% since its inception, with a market capitalization of US $ 59 billion, making it the fifth largest cryptocurrency in the world. Unlike memes coins, which recorded a rapid increase during this period, Solana does not benefit from dog memes or high-profile tweets.
As a programmable blockchain, Solana is designed to host decentralized applications (dApps). These peer-to-peer programs use self-executing smart contracts to run on the blockchain without intervention, enabling everything from on-chain cryptocurrency exchanges to the digital art market. Solana’s dApps use native Sol tokens to pay and execute transactions over the network, which can increase demand and reputation.
Solana currently hosts 500 dApps, well below current market leader Ethereum. However, Solana is ready to catch up with Ethereum because of its technical advantages.
What innovation is there in Solana?
Ethereum uses a tedious Proof of Work (PoW) consensus mechanism that allows miners to solve computational problems, validate transactions, and update blockchains. PoW is slow and uses real energy, which is not desirable. Solana solves this problem with a Proof of Stake (PoS) system that allows miners to verify transactions with existing coins. It also uses a complementary history certification algorithm that speeds up the process by recording time. According to coinbase.com, Solana’s consensus mechanism allows for an astonishing 50,000 transactions per second compared to Ethereum’s 15 or less. This means that Solana can handle more dApps at the same time without suffering from traffic jams or increased transaction fees.
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