Solana’s network crashed this week, but developers say the DeFi altcoin is still on track to succeed as an alternative to Ethereum (ETH). Solana has attracted developers as a faster and cheaper blockchain than Ethereum. The founder of a major project based in Solana said he was not discouraged by the network interruption earlier this week. Details Cryptocoin. com.
Solana as a competitor to Ethereum (ETH)
Insider, Solana spoke with a partner at a crypto investment fund who envisions a “multi-Blockchain world” where Ethereum and other networks coexist. Michael Wagner has big ambitions for his blockchain-based multiplayer game Star Adollars. He told Insider he wanted the user base to expand “to the entire global population.” Wagner said that a game that can support this kind of user base needs a scalable and low-cost web-scale, layer one Blockchain protocol. That’s why he and his team chose to build Star Adollars in Solana in August 2020 and participated in nearly 20 projects built on Blockchain.
A year later, Wagner said that there are more than 500 projects built on the network, and Solana’s SOL token has risen to over $150, boasting an annual gain of about 8300%. The gain was driven in part by developers like Wagner, who sought a network that could process transactions faster and cheaper than Ethereum, the blockchain on which most decentralized projects currently reside. While Solana processed 2,000 transactions per second on Friday, Ethereum was only processing about 14 transactions, with each transaction costing about $5 in Ethereum, while Solana has a transaction fee of less than a cent.
Developer interest and activity in Solana has grown so much over the past few months that the network’s compute load peaked on September 14, causing more than 17 hours of outage. The company said on Tuesday that “intermittent instability” had disrupted some services after Solana’s processing load peaked at 400,000 transactions per second. The network is now working again, and Wagner said he was not discouraged by the outage, but rather was impressed by the network’s “relevance of solution.” Wagner says:
Solana was able to process more than 400,000 transactions per second before failing, which was quickly being resolved. This demonstrates the true potential of a scalable Blockchain on the web and increases my determination to build Star Adollars with Solana as the underlying protocol.
Following the outage, investors may be wondering where Solana’s layer one blockchains will fit in the ecosystem, especially as Ethereum stands as the dominant platform for decentralized applications. Seth Ginns, managing partner at investment firm CoinFund, sees a “multi-Blockchain world” where developers examine the exchanges of each protocol and choose to build their projects on the blockchain that best provides what they need. Traditional financial apps that need high transaction speeds are well suited for Solana, Ginns told Insider. Meanwhile, he said that applications that need strong censorship resistance or a more decentralized protocol may be more suitable on Ethereum.
Ginns: “Both from a usage perspective and from an investor awareness perspective, we see Solana really coming to one of the top tiers in the core tiers. “Even if Ethereum goes through upgrades, that will remain the case.” However, he noted that Solana still has a fraction of the Ethereum network value, and the token is unlikely to displace the second-largest cryptocurrency anytime soon. “We have a saying, ‘You never bet on Ethereum,'” Ginns said. It will surprise me if you hear that I have given up on ETH completely. It just has a very vibrant developer community,” he said.