- What is Ethereum?
- What is Solana?
- Ethereum vs Solana: Comparative Analysis
- ETH vs SOL Price Trends
- Should you buy SOL coin or ETH coin
- How to Invest in Ethereum(ETH) and SOL coin
What is Ethereum?
Ethereum, the second-largest cryptocurrency by market capitalization, is an open-source blockchain system that has its own native cryptocurrency called Ether. Ethereum (ETH) works as a cryptocurrency platform for several other cryptos and helps in the execution of Decentralized Smart Contracts.
Vitalik Buterin, the founder of Ethereum cryptocurrency described Ethereum in 2013 on a white paper along with his co-founder and secured funding for the same in a public crowd sale in 2014. The official launch date of the Ethereum blockchain was July 30, 2015. It has undergone several updates since its launch, the recent being the London Hard Fork update.
The primary goal of Ethereum is to become the global platform for decentralized applications (Ethereum Dapps) that would allow the programmers and coders across the globe to run and write software that are censorship, fraud, and downtime free. It was the pioneer of the frequently used term today in the blockchain space, smart contracts. The principal innovation of Ethereum was designed to allow the execution of smart contracts via blockchain. As described by the co-founder, Gavin Wood, Ethereum was designed to become “one computer for the entire planet”.
The Ethereum blockchain is capable of hosting other cryptocurrencies called “tokens” through its ERC-20 standard. This in fact is the most common use for the platform. Ethereum coin price started at $3 while Ethereum price today stands at $3952.30. This rise in price has been in a span of only six years.
Additional Read: Deep dive into How Ethereum Works
WHAT IS SOLANA (SOL)?
Solana is an open-source project that utilizes blockchain technology’s decentralized nature to provide DeFi solutions that majorly focus on speed and low cost. Though the initial work on the project started in 2017, the crypto community finally got a glimpse of Solana when the Solana Foundation officially launched it in March 2020.
The Solana protocol is designed in such a way that it enables the creation of a decentralized app also known as DApp via deploying smart contracts onto its blockchain. Solana aims to improve scalability by presenting a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain. As of today (2 March 2022), the SOL crypto price is $104.69 with an ATH of $260.06 achieved on 6 November 2021.
Because of its speed and low-cost model, it is possible to verify payments sent on the Solana chain within seconds and costs an average of $0.00025. This also functions as the USP for Solana, as most of the issues surrounding crypto involve transaction fees and speed. Solana’s innovative hybrid consensus model makes it possible for both small-time traders and institutional traders to enjoy the platform equally. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale.
Additional Read: Solana vs Polkadot
Key differences between Solana vs Ethereum:
The unique features of Ethereum (ETH) cryptocurrency are:
- Ethereum is the pioneer of the smart contract concept.
- Ethereum blockchain is able to host various other cryptocurrencies using its ERC-20 standard.
- Ethereum’s latest update, London Hard Fork was implemented to reduce the high transaction fees and enhance its scalability.
The unique features of the Solana Coin are:
- SOL’s consensus mechanism is known as PoH (Proof of History) which enables every node to have its own clock and take decisions, without consulting each other.
- The Byzantine Fault Tolerance (BFT) algorithm of Solana makes sure that a particular node failure does not impact the working of the entire system.
- The Solana ecosystem enables multiple smart contracts to work at the same time.
Not sure about the basics of Crypto? Get all your answers at > Crypto Basics by CoinDCX Blog
|Comparison Basis||Solana (SOL)||Ethereum (ETH)|
|Founders||Anatoly Yakovenko and Greg Fitzgerald||Vitalik Buterin and Gavin Wood|
|Blockchain Protocol||Solana Protocol||Ethereum Blockchain|
|Use Case||Faster transaction with minimal fees||To host various cryptocurrencies and other decentralized applications (DApps)|
|Circulation Supply*||319,775,447.63 SOL||119,985,548.12 ETH|
|Consensus Method||Proof Of History (PoH)||PoW but soon to move to Proof-of-stake (PoS)|
MarketCap* and Circulation Supply** as of March 2022.
Solana (SOL) vs Ethereum (ETH): Price Trends (Monthly)
Solana (SOL) or Ethereum (ETH): Which is the better investment?
With the volatility of the crypto market and the recent multiple resetting of the same, the crypto giants have been a major interest for investors that are mostly institutional or tech giants who have recently been acquiring the native crypto tokens. As for the mass crypto investors, tokens that are newer and have wider use case examples have crawled up the portfolios. Given we take that lens, Solana and its community are driving pretty big possibilities in the near future whereas the native Ethereum has undergone various updates in the past years with the latest update being the Ethereum London Hard Fork Upgrade and the Altair upgrade; increasing the efficiency of the blockchain.
To put it simply, analysts suggest including a little percentage of the native crypto tokens like Ethereum in your portfolio to enjoy the passive income in the long run while also stating that if your own research points towards newer tokens like Solana, you should support the community and its causes.
Therefore, there is no pointing out the best token among the array of coins available in the crypto ecosystem. It is always choosing the coin that you believe in.
How to invest in both Solana (SOL) and Ethereum (ETH) coin
Investing in crypto has never been simpler, safer, and more secure with CoinDCX. It doesn’t matter whether you want to invest in the SOL or the ETH coin, we have got you covered. CoinDCX, India’s safest and simplest crypto investment app is here for you to buy a Solana coin.
All you need to do is follow these 3 simple steps to buy your first crypto with the CoinDCX app.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].
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