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Bank of America Says Solana Will Be the Visa of Digital-Asset World Ahead of Ethereum

Solana has enjoyed strong adoption since launching in 2020 with its revolutionary technology, rising to become the fifth-largest cryptocurrency.

Capable of processing up to 50,000 transactions per second while Ethereum struggles at 15-45 TPS, Solana quickly earned the title of the Ethereum-Killer

Solana combines Proof-of-Stake with Proof-of-History (PoH) to adopt a unique hybrid consensus algorithm, helping it achieve high throughput. 

In a research note, Bank of America explained to its clients that thanks to its “ability to provide high throughput, low cost, and ease of use,” Solana can become the “Visa of the digital asset ecosystem.”

Solana Outperforms Ethereum

The BoA digital asset strategist Alkesh Shah opines that Solana could grab market share from Ethereum because of its “high-value transaction and identity, storage and supply chain use cases.” In the future, the BoA believes Solana might one day beat Ethereum.

BoA explained that the Solana blockchain is more optimized for consumer use cases such as micropayments and gaming than Ethereum. However, it adds that Solana is relatively less decentralized and secure.

Since its launch in September 2020, Solana has settled more than 50 billion transactions (Visa processed 164.7 billion transactions in the year ending September 30, 2021). Solana has been used to mint over 5.7 million NFTs and has over $11 billion in TVL.

On the Flipside

  • Pantera Capital shares a different outlook on the future, projecting that Ethereum could facilitate 50% of all global transactions in the next 10 years.

Why You Should Care

Solana uses a new design (proof-of-history), and experts believe, if improved, could solve the scalability of digital assets.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Author

    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.