Home » Business » Bank of America strategist called Solana an analogue of Visa in the world of cryptocurrencies :: RBC.Crypto

Bank of America strategist called Solana an analogue of Visa in the world of cryptocurrencies :: RBC.Crypto


The bank published a report in which he spoke about the advantages of various blockchains, including mentioning Ethereum and Avalanche

Solana in the future may become an analogue of Visa for the digital asset ecosystem, Alkesh Shah, global cryptocurrency strategist at Bank of America, says Decrypt. In the report, he noted that there are more than 400 different decentralized applications in the altcoin network, from p2p exchangers to NFT marketplaces. At the same time, according to Shah, Ethereum can become a blockchain for expensive transactions, identification, storage and supply chain.

In the crypto industry, the throughput of various blockchains is often compared with that of Visa. The payment system claims that it can process up to 24 thousand transactions per second, while on average this value is 1.7 thousand. For Ethereum, the transaction speed is limited to 15 on average. Because of this, the network often experiences problems under increased load, and commission costs rise exponentially.

At the same time, Solana developers claim that the network can process up to 65,000 transactions per second with minimal fees. According to the creator of Ethereum Vitalik Buterin, after a global update, the speed of the ETH network will reach 100 thousand transactions per second.

“Solana prioritizes scalability, however it is a relatively less decentralized and secure blockchain. Since the inception of the network, there have been several performance issues,” Shah said.

In September, the Solana network experienced a failure, as a result of which the blockchain stopped processing transactions. As a result, new blocks did not come out for more than 16 hours, although they are usually added every 400 ms on average. The developers explained that the network could not withstand the high load, which at its peak reached 400,000 transactions per second.

The Bank of America strategist also mentioned the Avalanche network. Shah claims that the project is “trying to find a middle ground” between the security of Ethereum and the speed of Solana and, if successful, could become the best blockchain for decentralized finance. At the same time, the analyst concluded that there should not be one blockchain, each network can be used for its own purposes.

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