The Solana cryptocurrency provides customers with low transaction fees, ease of use, and scalability compared to other cryptocurrencies, according to the digital currency expert.
Bank of America’s cryptocurrency chief and analyst, Alkesh Shah, said on Tuesday that Solana (SOL) “could become the Visa of the digital ecosystem” by comparing the cryptocurrency to the popular credit card system.
In his report to his clients, the expert noted that Solana has over 400 applications in its network, including everything from peer-to-peer transactions to NFT markets.
Shah also noted that Ethereum, for example, will become the cryptocurrency for “high-value transactions and storage.”
”Solana prioritizes scalability, but it is a relatively less decentralized and less secure blockchain. Nevertheless, it has both advantages and disadvantages,” the expert commented.
“Ethereum prioritizes decentralization and security, but at the cost of scalability. Which has led to periods of network congestion and charges that are sometimes greater than the transaction value itself,” he added.
Theoretically, Visa is able to carry out 24,000 transactions per second (TPS), but on average there are about 1,700 transactions.
Ethereum has about 15 TPS, while Solana can reach 65,000 TPS. It is worth noting that Solana has already made 50 billion transactions since its launch.
“Its ability to provide high performance, low costs, and comparatively greater scalability than other cryptocurrencies creates a blockchain that is ideal for uses such as micropayments, gaming, and decentralized networks,” the expert concluded.
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