Ethereum versus Solana: similarities and differences

Solana and Ethereum are two of the most prominent blockchains in crypto. Many investors need clarification before investing. They’re often compared with each other. However, some things differentiate them. But it only adds to the confusion.

There are over 12,000 crypto tokens launched on nearly 1,000 blockchain platforms. It often leaves investors and crypto users needing to decide which one to use. The choice between Ethereum and Solana needs to be clarified since both blockchains solve the same problem. Not to mention that the solana price has since recovered, leaving many investors even more confused.

This short article will not ask you whether you should use or invest in Ethereum or Solana. Instead, it is a guide for users to better understand their similarities and differences.

What’s Ethereum?

Ethereum is arguably one of the most well-known blockchains. Ethereum’s ether (ETH) enables on-chain transactions via a standalone peer-to-peer system.

Ethereum is similar to Bitcoin but supports smart contracts. As such, its programming language allows developers to write specific code that automates transaction executions.

Ethereum uses a proof-of-stake (PoS) consensus mechanism. Before any transaction is approved, it must be verified by special nodes called validators.

What’s Solana? 

Solana is a fourth-generation blockchain network focusing on fast transactions and high throughput through PoS.

The blockchain also uses the so-called proof-of-history (PoH) innovation to achieve this, which differs from Bitcoin’s proof-of-work (PoW). 

Solana users can pay transaction fees and interact with smart contracts using the network’s coin, SOL.

Moreover, the platform’s scalability ensures that all transactions are cheap and below $0.01. These transactions are also executed as fast as 400 milliseconds per block. 

Is Solana an “Ethereum-killer”?

Some users consider Solana an “Ethereum killer”. Although the blockchain, like many others, recently contracted, it can bounce back to be a powerful competitor to Ethereum and other layer-1 networks.

Solana is optimized for high throughput, minimal costs, and native scalability, features that give it an edge over Ethereum. Its strength could lie in its network activity and the platform’s accelerated development. However, Ethereum still has more active users than Solana.

So, is Solana an Ethereum killer or not? That depends on who you ask. Its proponents insist Solana will replace Ethereum. However, considering Ethereum’s first-mover advantage and on-chain activity, supporters claim the blockchain is superior. 

Should you invest in ETH or SOL?

The answer to whether you should invest in ETH or SOL is flexible: there’s no right or wrong in this regard. 

Like any other cryptocurrency, and investments for that matter, you should explore the benefits and risks with both ETH and SOL. 

In any case, Solana is famous for its fast and cheap transactions. In addition, SOL prices have been recovering in recent months.

However, it’s of utmost importance to invest by being practical and aware of volatility regardless of choice.