The Bank of America gave the highest possible praise that a leading United States bank could bestow on cryptocurrency. The bank compared Solana to the largest credit card network in the world.
Alkesh Shah, the global digital asset and crypto strategist of the Bank of America penned down in the research note, which was publicized on Tuesday that:
“Solana could become the Visa of the digital asset ecosystem.” Shah referenced not less than 400 dapps on the Solana network. Ethereum could become the blockchain for “high-value transactions and identity, storage and supply chain use cases.”
Also, Cryptocurrency experts have long drawn comparisons between transactions per second (TPS) feasible on blockchains to those actualized on the credit card networks. Visa reveals it can theoretically handle not less than 24,000 transactions per seconds but averages about 1,700.
It is noted that the TPS most regularly bandied about for Ethereum is 15. This, however, is not so much. This is due to the demands of dapps (decentralized applications), which are constantly “on-chain.” With a few spots, the network’s transaction fees are usually scaled in double digits, and in dollars.
Several projects are striving to resolve the scalability woes of Ethereum —this includes rollups on Arbitrum and via sidechains on Polygon – congestion may not reduce significantly until Ethereum 2.0 has been completely rolled out. Ethereum creator and founder Vitalik Buterin, in June 2020, assumed that the upgraded network might achieve 100,000 TPS.
Solana blows out both Visa and Ethereum out of the water with its own estimates. It has a theoretical limit of about 65,000 transactions per seconds at fractions of a penny. However, Bank of America’s comparison isn’t entirely flattering.
Shah penned, when making reference to some issues and a network outage that happened in September.
“Solana prioritizes scalability, but a relatively less decentralized and secure blockchain has tradeoffs, illustrated by several network performance issues since inception.”
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Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.