There have been several alleged Ethereum killers, but none have managed to outperform the world’s largest altcoin. Is it then possible for Solana to achieve this feat? In fact, according to Kyle Samani, managing partner of Multicoin Capital, Solana and Ethereum could be the iOS and Android of the cryptocurrency world.
What is the Ethereum effect for SOL?
Ethereum’s huge fees and slow transaction speeds gave way to alternatives like Solana, resulting in aggressive growth of the project over the past year. At press time, Solana was ranked 10th in terms of market capitalization following a 69% price hike.
It went up from $ 1.50 at the beginning of the year to $ 76.90, at the time of writing. A significant part of this rally was seen in recent months, with Ethereum problems also playing a role. So far, everything is going well for SOL.
However, it should be noted that these developments are not a threat to Ethereum. Rather, they may be paving the way to a more scalable network. So what? Will Solana’s blockchain be able to compete with Ethereum when “The Merge” is up for grabs?
According to Samani, a recent guest on a podcast, the impact of “The Merge” will be limited to a small percentage of increases in the market and nothing more substantial. Meanwhile, on the question of whether Solana could displace Ethereum, Samani believes that they can actually coexist.
Expecting Solana to realize her full potential in the next 24 to 36 months, Samani noted,
“The interesting thing, (in what) is happening right now, is that both coexist. They both have different growth rates. I think Solana’s growth rate will be steadily higher than Ethereum’s foreseeable future, that is, the next 24 to 36 months. “
Stating that “inertia lasts for several years,” Samani explained that Ethereum is not going anywhere because of the infrastructure it has built. He added,
“I think we are going to see two things coexist. We have iOS, we have Android. And, today, everyone knows that you have to create an iPhone application and an Android application. “
The nature of the competition will be …
While there are still multiple competing ecosystems, the competition will become more intense when Ethereum fully transforms into Ethereum 2.0. However, the offer will be for a more decentralized platform.
Although Ethereum is indisputably more decentralized than Solana, Samani argued that it would be unfair to call it centralized. “Decentralization is a spectrum” and not binary, he said. The question here might be: “Who controls the consensus?”
Solana requires 19 nodes for staking to reach 33%, while for Ethereum, only three of the four mining pools take it to 51%. ETH 2.0, on the other hand, requires seven or eight entities to get consensus on one-third, which is the control metric for PoS systems.
According to the executive, Ethereum is only 3-4 times more decentralized than Solana. This is a minor gap on the spectrum of decentralization.
This is a machine translation of our English version.
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