Solana Could Be the Visa of Crypto Networks. Not So Fast, Says Visa. (2024)

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Solana Could Be the Visa of Crypto Networks. Not So Fast, Says Visa.? ›

Not So Fast, Says Visa. The Solana blockchain is so cheap, fast, and scalable that it could be the Visa of crypto networks, according to a Bank of America analyst.

Transaction throughput at the scale of Visa

While Solana has not executed transactions at the scale of Visa, Solana averages 400 user-generated transactions per second (TPS), and typically surges to more than 2,000 user-generated TPS during periods of peak demand.

Solana could become the Visa of crypto

The network can process around 65,000 crypto transactions per second – about 2,000 times faster than Ethereum, and on a par with Visa. In fact, Bank of America reckons Solana could become the “Visa of the digital asset ecosystem.”

As it is, Solana can process over 5,000 transactions per second. However, some analysts say that theoretically, it can process up to 65,000 transactions per second, although this has only been achieved in test net conditions.

Removing the coordination overhead required by traditional consensus models is the key to Solana's speed. PoH effectively acts as a high-frequency clock enabling validators to locally process transactions concurrently without impacting global consensus.

Transaction Speed And Scalability

Solana currently facilitates transaction speeds of up to theoretically 65,000 TPS through core innovations in its hybrid consensus infrastructure – drastically higher throughput than Cardano's estimated 1,000 TPS limit.

Solana is known for its high throughput due to its unique consensus mechanism, while Ethereum faces scalability issues with network congestion. Solana can handle thousands of transactions per second, surpassing Ethereum's current capacity significantly.

Visa's interest in Solana stems from its exceptional transaction throughput, a key criterion essential for a payment processing giant like Visa. While Solana may not have yet reached Visa's scale, it has demonstrated the capacity to handle an average of 400 user-generated transactions per second.

A closer look at the chart further reveals that Solana has witnessed 15.2% increase in trading volumes in the past weekly timeframe, it leapfrogged Arbitrum (ARB) and Ethereum (ETH) to claim 1st place.

Together, that tells us that markets believe Solana is still not Bitcoin. Bitcoin remains far ahead, both in consumer adoption and potential regulation, and its rising prices reflect that sentiment. If you had to buy just one crypto, it should probably be Bitcoin.

What are the disadvantages of Solana? ›

This combination enables Solana to process transactions at a theoretical peak of 710,000 transactions per second, a feat of engineering that positions it as one of the fastest blockchains in existence.

Mahe, Seychelles--(Newsfile Corp. - March 13, 2024) - Tectum, the decentralized network developed by Crispmind, has made history by becoming the fastest blockchain in the world. This is a significant stride, as the company breaks its own record of 1.2 million transactions per second and extends its streak.

Traders often have to raise slippage limits to accommodate price swings that occur while their trading orders are finalised on the blockchain. Transaction failure can happen in instances where the price swing exceeds the slippage limit.

This speed is achieved through a combination of proof-of-stake and proof-of-authority consensus mechanisms. However, another source states that Polygon's throughput can reach up to 72,000 TPS, potentially making it faster than Solana in terms of transaction speed.

Technical Challenges Slow Down Solana

The Solana blockchain recently experienced some serious congestion issues, leading to a cascade of problems for its users and developers. This congestion resulted in increasing transaction errors and delays, which caused several crypto projects to delay their launches.

This combination enables Solana to process transactions at a theoretical peak of 710,000 transactions per second, a feat of engineering that positions it as one of the fastest blockchains in existence.

While credit card transactions involve many parties, they only take a few seconds to complete. On the other hand, Bitcoin transactions can take 10 minutes or more based on network activity and the network's current hashrate.

The Open Network (TON) proves it is the world's fastest and most scalable blockchain. The Open Network Foundation (TON Foundation) has today announced that, during a successful live-streamed stress test, the TON blockchain has proven that it is the world's fastest and most scalable public blockchain.