Solana Could Beat Out Ethereum to ‘Become the Visa’ of Crypto: Bank of America
- Solana boasts high transaction speeds as well as hundreds of decentralized applications on its network.
- A recent BofA research note says it could have many use cases for consumers.
Bank of America gave perhaps the highest praise a major U.S. bank could bestow on a cryptocurrency: It compared it to the world’s largest credit card network.
“Solana could become the Visa of the digital asset ecosystem,” Bank of America global crypto and digital asset strategist Alkesh Shah wrote in a research note published Tuesday. He cited the more than 400 decentralized applications on Solana’s network, which host everything from peer-to-peer exchanges to NFT marketplaces.
Ethereum, meanwhile, could become the blockchain for “high-value transactions and identity, storage and supply chain use cases,” he wrote.
Crypto veterans have long compared the transactions per second (TPS) possible on blockchains to those performed on credit card networks. Visa says it can theoretically handle at least 24,000 TPS but averages around 1,700. The TPS most frequently bandied about for Ethereum is 15. Which isn’t a lot, given the demands of decentralized applications that are constantly “on-chain.” With limited spots, transaction fees on the network are typically measured in double digits — in dollars.
While plenty of projects are trying to solve Ethereum’s scalability woes — including via sidechains on Polygon and rollups on Arbitrum — congestion isn’t likely to significantly reduce until the full rollout of Ethereum 2.0. Ethereum creator Vitalik Buterin posited in June 2020 that the upgraded network could get to 100,000 TPS.