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Bank of America believes that the popular altcoin Solana is a cryptocurrency that can become an analogue of the Visa payment system for the crypto ecosystem.
Bank of America digital asset market analyst Alkesh Shah sees great promise in a cryptocurrency competing with Ethereum. In his report, which was cited by Business Insider, he noted that there are more than 400 different decentralized applications on the Solana network – from p2p exchanges to NFT marketplaces.
Shah explained his position: “Its ability to provide high transaction speed, low cost, and ease of use creates a blockchain optimized for consumer use cases such as micropayments, DeFi, NFT, decentralized networks (Web3) and games.”
However, the popular altcoin has serious disadvantages. “Solana prioritizes scalability, however it is a relatively less decentralized and secure blockchain. Since the inception of the network, there have been several problems with its performance,” Shah emphasized.
Ethereum is a little different: “Ethereum prioritizes decentralization and security at the expense of scalability, which causes periods of network congestion, and transaction processing fees sometimes even exceed the amount of transactions themselves.”
Thus, the two altcoins have room to compete. In the cryptocurrency industry, experts often compare network bandwidth with the Visa payment system. Visa processes an average of 1,700 transactions per second, but theoretically the network can process at least 24,000.
Solana’s developers claim that the network can handle up to 65,000 transactions per second with minimal fees.
The Solana network was launched in 2020 and since then SOL has firmly settled on the fifth line of the cryptocurrency rating by market capitalization (data from Coinmarketcap). The blockchain has been used for over 50 billion transactions and the issuance of over 5.7 million unique NFTs.
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