• The Solana blockchain is allegedly raising $450 million in a new round of funding as it plans to take on Ethereum.
• The Solana blockchain has always been on course to improve its utility and functionality.
• In other developments, Ethereum’s upgrade to ETH 2.0 is set to launch soon, further improving Ethereum’s scalability.
• Experts laud the push from blockchains for scalability as it is to the overall benefit of the cryptoverse.

The launch of the first cryptocurrency in 2009 solidified the push for DeFi (Decentralized Financial) solutions. Over the years, there have been a number of DeFi solutions springing up across all sectors, coupled with widespread adoption, which has led to higher blockchain transaction fees and slower transaction times. Reports are permeating through industry circles that Solana is raising between $300 and $450 million to develop a faster blockchain.

Solana, which became a blockchain through its whitepaper, released in 2018 and initially launched on Mainnet Beta in 2020, proved to be a more scalable blockchain compared to the earlier launched Ethereum. It can process up to 50,000 transactions per second, making it widely considered as an ETH killer.

A $450 Million Investment: Solana Means Business

FXT backed blockchain Solana Labs has raised $314 million in token sales to develop a faster, more efficient scalable blockchain. The funding period was expected to close, but later extended through March as it chased new investors to secure the project.

FXT CEO Sam Bankman-Fried has praised the Solana project, stating: “I’m excited and impressed to see the recent growth of Solana’s business. They’ve had industry-leading tech for a while, and it’s gratifying to see reality catching up.”

In 2020, the FXT team opted to launch its decentralized exchange, Serum, on Solana because of its low fees and other utilities. The Solana Blockchain promises more scalability than Ethereum through its new ‘proof of history’ mechanism, much to the delight of traders.

The potential of the Solano blockchain seems far-reaching, and the company is pushing to cement its place as the ETH killer. Solana recently announced its plans for a $20 million fund for the ecosystem in South Korea.

On the Flipside

• Ethereum is the home of dApps, with over 3000 already on its platform, which will make it very difficult for Solana to displace it.
• The launch of ETH 2.0 may stifle the popularity of Solano as it will provide a significant upgrade to the Ethereum platform in terms of speed, cost, and security.

The Battle for Scalability

The battle for scalability has been a staple in the cryptoverse since the mass adoption of DeFi solutions. Proliferation of DeFi solutions leads to congestion on the blockchain as the number of transactions to be processed becomes too much, thereby creating a backlog. Blockchains are now in the process of upgrading to develop the perfect environment for both developers and users.

The massive success of Ethereum has led to a scalability problem for blockchains. The Ethereum blockchain is now plagued with high fees and slow processing, making other blockchains term themselves “ETH killers” as they offer more utilities.

Cardano’s Alonzo has been at the forefront of ETH killers with Avalanche, and now Solana, following suit. Solana securing funding and developing its blockchain to tackle ETH may be a long shot, but it is definitely worth the effort.