Ethereum and Solana are two of the biggest blockchains for decentralized finance (DeFi) and non-fungible tokens (NFTs). Both networks are appealing because of their diverse ecosystems and unique characteristics. But how precisely do you contrast Ethereum and Solana? In the cryptosphere, some are saying that Solana just might be the “Ethereum killer.” But is it the case? Can Solana compete with Ethereum to that level?
The primary distinctions between the two blockchains will be covered in this essay. We’ll examine each blockchain’s underlying technology, key characteristics, and developing decentralized application (DApp) ecosystem.
With its all-purpose smart contracts feature, Ethereum is the first programmable blockchain that enables programmers to create decentralized apps.
The Ethereum blockchain can be used for decentralized financial (DeFi) apps and non-fungible tokens (NFTs). Ethereum was created to support a wide range of specialized applications and be everything to everyone. And that’s exactly what it accomplishes. It provides security and a full set of resources for creating any type of decentralized application.
Ether (ETH), a native asset of the blockchain, is also utilized to cover transaction gas costs. However, Ethereum is in the process of switching to proof-of-stake (PoS), which will have several advantages for the network, including decreased costs.
To address the scaling issues the Ethereum blockchain was experiencing, Solana was developed. This is brought on by the rising demand for cryptocurrencies and the bandwidth restrictions that prevent everyone from using a specific blockchain from completing transactions quickly. Solana employs cunning technical strategies to come up with solid answers to issues that other blockchain systems are unable to resolve.
Solana offers a platform for non-fungible coins and decentralized apps similar to Ethereum (DApps). Digital artists like 3D modelers and visual effects artists are excited about these digital replicas of collectible goods like artwork. Degenerate Apes was one of Solana’s early projects in this manner. More than 10,000 portraits are available for purchase in this collection, which is exclusive to SOL.
Understanding the Differences
Before responding to the question ‘Why is Solana better than Ethereum’ or vice versa, we will first need to understand the relevant differences between these two blockchains. Both blockchains have their supporters and a vast number of applications already using them.
However, Ethereum is the most well-known DApp platform since it provides a more advanced and transparent ecosystem. It is impossible to ignore some distinctions between the two. We will compare and contrast these blockchains from ten distinct angles.
The blockchain of Bitcoin uses a PoW consensus algorithm, and Ethereum 1.0 also uses this algorithm. By using their computing power to verify blockchain transactions and create new blocks, miners safeguard the network. This is the fundamental idea behind a decentralized network, and it helps to make the system more secure. The PoW system, on the other hand, can only handle a few transactions per second, which is a significant barrier to a developing decentralized network.
Because Solana uses proof-of-history, it differs from Ethereum in this regard (POH). In essence, calculating the cryptographic time between two events involves several computational operations. By adding timestamps to transactions, you can keep track of the sequential order of each transaction. In contrast to Bitcoin or Ethereum, where transactions are not immediately placed, this order sequencing is fundamentally different.
Since Solana has a “stateless” architecture, Ethereum and Solana also differ significantly in this regard. This decreases the consumption of memory. Transactions can be carried out sequentially since the status of the entire network does not need to be changed for every single transaction. Because of this, Solana is very scalable.
Using decentralized blockchain networks’ smart contracts, programmers can build new applications. Each node on the network contains its virtual computer that executes instructions as they are added to the digital ledger.
The programming languages and virtual machines that a smart-contract platform supports have an impact on the security of smart contracts. The programming language being used is crucial because developers who are more familiar with it will be less likely to err. As a result, an older virtual machine may be more reliable and have fewer faults.
The specially created Ethereum Virtual Machine is used by Ethereum (EVM). Its smart contracts are mostly written in proprietary languages like:
- Solidity (inspired by C++),
- Fe (based on Rust and Python),
- Viper (Pythonic Language),
- Yul/Yul+ (intermediate language to EVM).
Decentralization is at the core of blockchain technology. And when contrasting Solana with Ethereum, it serves as one of the key differentiators. Eliminating systems where a person or group has significant influence over them is the ultimate objective. As a result, resilience is increased and power misuse is prevented.
However, decentralization can also represent a hurdle in blockchain systems, especially with decentralized storage. Mining pools were made possible by PoW networks, which paved the way for multiple organizations to have centralized control over the blockchain.
The highest stakeholders in PoS, on the other hand, likewise profit the most from the system. This “rich grow richer” arrangement can allow for the consolidation of power.
The majority of Ethereum’s problems have been fixed since the network’s launch. Ethereum is the first programmable blockchain. Despite occasionally experiencing congestion, it never goes down since it is vastly more decentralized than other chains. In actuality, it contributes to Ethereum’s scaling issues. Every cryptocurrency user should be able to run an Ethereum node on any hardware, according to the project. Ethereum has never had downtime since its creation.
However, Solana is still having trouble with some of the difficulties involved in building a completely decentralized network. Since the chain’s inception, there have been several outages.
The first Solana outage occurred in December 2020. No money was lost during the five hours it lasted. In September 2021, the second Solana outage occurred. The duration was 17 hours. A distributed denial of service (more details) assault was the reason for this outage.
When a bad actor tries to overwhelm a network, it is called a DDoS attack. What came out of it? Despite losing some of its investors and being stopped for several hours, Solana did not lose any money.
This is essential because a lot of individuals detest paying transaction fees. Solana is renowned for having reasonable transaction fees. Compared to Solana, Ethereum has a greater transaction cost.
On the Ethereum network, the standard gas fee as of July 2022 is 3 Gwei ($0.09). Gas costs in Solana are now set at 0.0000053 SOL ($0,0000014) for each transaction.
The Solana blockchain features a block time of 0.4 seconds and a block size of 20,000 transactions, compared to Ethereum’s block time of 13 seconds and block size of only 70 transactions.
In Final Words
When comparing Solana and Ethereum, it’s critical to identify the precise features or requirements for your blockchain actions. When comparing Ethereum with Solana, the underlying technology is the key point of discussion.
Although Ethereum has a considerably bigger trade volume and is more popular in the cryptocurrency market, Solana is the fastest blockchain. In the end, the answer will greatly depend on the reason for your usage.