Solana – Is the lightning-fast cryptocurrency still worth investing in?

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Solana (SOL) is an open source blockchain platform designed to host decentralized, scalable applications. Since it has smart contract capability, Solana is often compared to Ethereum (ETH). I will analyze Solana and compare it to Ethereum and a new altcoin on the Ethereum platform – Big eyes (BIG) to answer the question: Should you invest in Solana in 2022?

The proof is in the pudding: Solana’s Proof-of-History vs Ethereum’s Proof-of-Stake

Consensus mechanisms are how a blockchain network validates transactions to prevent fraud and remain secure. Blockchains such as Ethereum use proof-of-stake, which achieves consensus through participants (known as validators) using their cryptocurrency to ‘vote’ on legitimate transactions. These stakers are paid in newly created cryptocurrency over time.

Solana uses a proof-of-history consensus mechanism, which is built on the proof-of-stake mechanism used in blockchains such as Ethereum. Proof-of-history uses hashed timestamps to verify when transactions take place, effectively acting as a cryptographic clock. As a result, the network does not need to reconcile and order transaction times sent to it by different nodes on the system. This means that these nodes can focus more energy to efficiently process more blocks, making the network much faster since every node in the network does not need to communicate to validate a transaction.

One of the main advantages of Solana over Ethereum is its lightning-fast speeds and scalability. Solana can process as many as 50,000 transactions per second and its average price is $0.00025. In contrast, Ethereum can only handle less than 15 transactions per second and has transaction fees that average around $1.68. With this information, it looks like Solana would be a no-brainer to invest in over Ethereum. But like anything else, there are some downsides.

Outages and security issues

Solana experienced several outages between 2021-2022. In mid-September 2021, the entire network went offline after a wave of transactions revealed a flaw in the system. It was shut down for 17 hours as a team of engineers worked to fix the problem. A question that might be ringing in your mind – how can a theoretically decentralized network be shut down for maintenance like a centralized network would be? Well, it turns out that the top 5 data centers that have Solana nodes control 47.4% of the nodes. This is a glaring problem for many cryptocurrency investors as many people invest in cryptocurrencies due to their decentralized nature. Although networks like Ethereum (ETH) and Bitcoin (BTC) may not allow for processing a huge amount of transactions and are slower, they are more secure. Bitcoin and Ethereum have only experienced outages a few times each over 10+ years.

Solana’s potential gains

Solana (SOL) has seen incredible gains of 12,000% in 2021, and at one point was the fifth largest cryptocurrency with a market cap of over $66 billion. However, Solana was also another victim of the severe crash, and by early October 2022, SOL had fallen to around $11.71 billion in market capitalization. There is a chance that Solana will rise again in the next bull run, but the gains will not be anywhere near what they were on this initial boom. If you are looking for explosive gains, investing in a meme coin is a high risk, very, very, very high reward investment. Meme coins like Shiba Inu (SHIB) have seen huge gains of 14,044,998% and getting on board early is the key to blasting to the moon with these cryptocurrencies.

Bullish on big eyes

Big Eyes (BIG) is a promising new meme coin focused on giving back to the environment. Unlike its competitors in the meme coin space, such as Dogecoin (DOGE), Big Eyes has gifts and charity built into its tokennomics. 5% of all tokens will be held in a visible charity wallet and donated to charities focused on marine life conservation. Big Eyes has raised over $9 million in its pre-sales and only continues to build momentum.

Should you invest in Solana?

From a user perspective, the decentralized applications (dApps) built into Solana are fantastic. Buying NFTs or other cryptocurrencies running on the Solana network is very simple and has very small commissions. Solana is a solid investment to make, but it comes down to your belief in whether or not Solana can overcome these outage and centralization issues. Solana’s fate will be determined by its resilience in the long run and whether Ethereum will be able to scale and catch up to Solana’s lightning-fast speeds. Also, investing in Ethereum (ETH) and Ethereum-based cryptocurrencies like Big Eyes (BIG) is a great way to spread the risk and get your eggs in more than one basket.

Big Eyes Coin (BIG)
Presale: https://buy.bigeyes.space/
Website: https://bigeyes.space/
Telegram: https://t.me/BIGEYESOFFICIAL

Disclaimer: This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent Bitcoinists. Bitcoinist does not guarantee the accuracy or timeliness of the information available in such content. Do your research and invest at your own risk.

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