The recent tumultuous rise of cryptocurrency gave everyone thought even for a minute that what will be the future of Blockchain adoption? Which Blockchain protocol would be the best for a certain business or sector? Now to get answers to all these curiosity-generated queries one needs to know about the ground realities of not just cryptos but of these Blockchain protocols.
So, here we will be discussing one of the most top trending Blockchain protocols named Solana Vs other Blockchain protocols which are making up their mark into the top 10 counts.
Solana is one of the fastest-growing open-source programmable Blockchain protocols that is used by developers and institutions around the world to build decentralized applications (DApps) and marketplaces. Solana is an uber-fast, secure, and censorship-resistant Blockchain protocol with some of the unique qualities which led to its mass adoption in building open infrastructure in a flexible manner.
For the development of next-generation DApps and decentralized marketplaces, Solana is perfectly suited due to its fully decentralized nature, security, highly scalable, and high performance.
Solana owes its origin to 2017 when its whitepaper was published by Anatoly Yakovenko, who previously worked at Qualcomm and Dropbox. Solana has an impressive story to tell since its inception that it has been funded $20 million series till mid-2019 and again money raised was $1.76 million.
The computational power of the beta mainnet of Solana has the ability to do basic transactions along with smart contract features, that were launched in March 2020.
The affairs of funding and developing the Blockchain’s community-building initiatives of Solana is taken care of by Solana Foundation that functions as a non-profit organization. In terms of the core contributor, Solana Labs remains at the pinnacle.
Solana’s native token’s price is up by whopping 40 times in a short time of 12 months which astonished everyone and there’s a solid reason behind that appreciation. The average transaction fee over Solana is around 0.000005 SOL, with an average block time is around 400–800 milliseconds. So, it is hopeful that Solana will someday even surpass even Bitcoin for sure.
After an introduction about Solana as an Ethereum killer, now let’s do a brief comparison over various parameters between Solana and competing Blockchain ecosystem–
Ethereum must be a very familiar name for any crypto enthusiast as it has been referred to as ‘Queen of Cryptocurrencies’ by some. Ethereum was the first Blockchain project to install smart contract technology, which eliminates the need for a third party to enter into an agreement. As a Blockchain platform Ethereum has carved out a niche for itself in the blockchain community, but with the entry of newbies, it stands cornered. One of the newest ones to arrive over the horizon is the Solana, which as a Blockchain platform has showcased a great amount of potential in recent times.
The comparison between Solana vs Ethereum is not just hype but reality which brought Solana from nowhere to the top 10 in the cryptocurrency market cap ratings. In fact, many experts and crypto platforms enthusiasts are calling Solana an Ethereum killer due to its advanced technology and high scalability.
Ethereum since its launch in 2015 it is an open-source and Decentralized Finance (DeFi) or DeFi ecosystem, that was introduced by them where, outside the traditional banking system you can borrow, lend and earn interest on your cryptos and all that without the need for an intermediary. In short, it can be said that Ethereum was one of the first Blockchain ecosystems that helped in revolutionising finance.
In terms of mechanism, Ethereum platform uses Proof-of-Work system (PoW) to achieve consensus. There are some issues faced with Proof-of-Work (PoW) mechanism, and one of the major issue is that it consumes a lot amount of power and energy that makes it inefficient.
It is no man’s secret that Ethereum initially was tardily slow in handling just 7 transactions a second, while Solana does around 65 000 a second. In current state, at best Ethereum can do around 30 transaction per second, but still that is not sufficient for any financial institution.
Smart Contracts is nothing but a program, that consists collection of code and data that is stored at a specific address over the Ethereum Blockchain. Like a regular contract, Smart Contract can define rules, and automatically enforce them through the code.
There are mainly two developer-friendly languages for writing smart contracts in Ethereum – Solidity and Vyper. In Ethereum, by having enough ETH to deploy your contract anyone can write a smart contract and deploy it to the network. To deploy a smart contract you need to pay in form of gas fee just like a simple ETH transfer.
Ethereum Request for Comment (ERC-20) is standard token used over Ethereum for creating and issuing Smart Contracts. These ERC-20 tokens are Blockchain-based digital assets, it can hold value and be sent and received. ERC-20 tokens started as a revolutionary system for creating interoperability between tokens built on the Ethereum Network.
As of now, Solana Foundation functions as a non-profit organization that looks after funding and in developing the Blockchain’s community-building initiatives. Whereas Solana Labs remains at the top in terms of the core contributor to the network.
When we go into comparison for Solana Vs Cardano, it is yet another fastest growing Blockchain platform based upon Proof-of-Stake (PoS) protocol that is built through peer-reviewed research. The development of Cardano was started in 2015 by Charles Hoskinson, who is also the co-founder of Etehreum. Later Cardano stood as an alternative to Ethereum which claims to offer scaling solutions, interoperability, and sustainability on their network.
Frankly speaking, the new generation of Blockchain technology like Solana and Cardano are Ethereum killers due to their computing power. Cardano considers itself as another form of an updated version of Ethereum, which is a second-generation platform, while Cardano claims to be a third-generation platform. Cardano is the first Blockchain to use a purely functional programming language named ‘Haskell’ This programming language is generally used in high-level software development, while many consider this language to be more precise, formally verifiable, and better suited to applications that require high assurance.
Presently Cardano is being built over five different phases or parts to achieve its goals of developing the network into a decentralized application (DApp) development platform. Those parts are named after different historical figures.
In terms of licensing, Solana vs Cardano fares are almost the same. As Cardano is an open-source Blockchain protocol under the custodianship of the Cardano Blockchain, the Cardano Foundation is a Swiss not-for-profit organization.
Solana too is an open-source programmable Blockchain protocol that is used by developers and institutions around the world to build decentralized applications (DApps) and marketplaces. It functions as a non-profit organization that looks after funding and in developing the Blockchain’s community-building initiatives.
Solana comparison to Cardano in terms of consensus-building mechanism is a bit different due to their functioning. The protocol used by Cardano is known as the Ouroboros consensus protocol, which was created in its foundation phase. Under the Ouroboros mechanism, each node has the chance to be elected as a slot leader to validate a block, further, the chance of becoming a slot leader increasing alongside the amount of ADA staked to their pool up to the pool saturation point. If validation happens successfully then stake system pools receive rewards and further these rewards are distributed to delegates of the stake pool, providing an opportunity to earn ADA for taking part in consensus.
Whereas, Solana uses the Proof-of-History (PoH) mechanism, which is a cryptographic clock that enables nodes to agree on the time order of the events on the chain, without having to talk to each other — since each node has its own clock.
Various blocks are divided under the name of ‘epochs’ in the Ouroboros mechanism and, they last for five days. Further, these epochs are subdivided into smaller increments by the name of slots which last for 20 seconds.
Cardano with ADA cryptocurrency offers much cheaper and quick transactions compared to other older Blockchains. Due to the usage of the Proof-of-Stake (PoS) algorithm, it can be stated that Cardano is one of the most reliable compared to other Blockchains. The need for extra machines within the system is not felt under the PoS algorithm, as the nodes will be responsible for throughput and the system will be less susceptible to interference as a result.
Cardano functions very much similar to Ethereum, where the Blockchain model is used together with Smart Contract and tokens. Cardano comes with a two-tiered structure – Cardano Settlement Layer (CSL) and the Cardano Computational Layer (CCL). The CSL enables the transfer of the native Cardano (ADA) cryptocurrency between other blockchain participants. The CCL consists of multiple components that enable tokenization, smart contracts, and dApps.
Just like Solana has its own crypto named SOL, Cardano’s native currency is known as ‘Ada’ Cardano’s native currency Ada is named after Ada Lovelace, who is a 19th-century countess and English mathematician who is recognized as the first computer programmer.
Solana’s SOL and Cardano’s Ada both are doing exceptionally well by trending at their all-time highs with their native cryptocurrencies enjoying fully diluted valuations of $85 billion and $105 billion respectively.
Cardano was initially funded through an Initial Coin Offering (ICO) and as of now raised $540000. Cardano has a community support forum and for that, you need to sign in to their official website where you get an opportunity to interact and engage in an open discussion about the Cardano project. Apart from that, there are community pages over various social media like Facebook, Twitter, Reddit, GitHub, and group over Telegram.
Polkadot makes itself into the top 10 cryptocurrencies recently and is relatively much new like Cardano. Polkadot is a heterogeneous multi-chain Blockchain platform built by Web3 Foundation by commissioning around 100 developers and five teams. It has been built for scalability, on-chain governance and one of the main features is the interoperability that lets it connect different Blockchains through a central platform. Polkadot aims to make it easier than ever to create and connect decentralized applications, services, and institutions.
Polkadot is an open-source Blockchain protocol just like its other counterparts. In the Polkadot codebase, anyone can contribute or run a code or even build a service. It is built to connect various private and public, consortium chains and permissionless networks.
Polkadot functions as a shared security protocol by running over the Nominated-Proof-of-Stake mechanism to achieve consensus. Due to its interoperability nature, the projects connected to the relay chain share the common consensus mechanism. The individual parachains can communicate under this mechanism and there is no need for additional state indicators in the network. Through via bridges Polkadot can do interoperable communication with external Blockchains and to do this exchange of information special parachains are responsible.
Polkadot is a sharded multichain network, due to shard chains it does not get bottlenecked like isolated Blockchains, and it overcomes those issues that happen usually over legacy networks. Polkadot can process parallel, which conveniently improves scalability greatly, thus creating the right conditions for increased adoption and future growth.
In terms of security, it is worth mentioning that Polkadot runs on a Nominated-Proof-of-Stake mechanism that translated to shared security, where all DOTs staked in the stake system are essentially backing all of the projects in the ecosystem. Due to this pooled security of NPoS mechanism the security costs are greatly reduced on all projects those are built over Polkadot.
So, speed, security, and scalability are well addressed in Polkadot and in case any business wants additional security then they can bootstrap their own security with their validators, nominators, etc. to beef up more.
Smart Contract is actively not supported in Polkadot Relay Chain, however with the help of parachains Smart Contracts can be deployed.
In the Solana vs Polkadot series of comparisons in crypto portfolio, Polakdot too has its native token by the name of DOT that can be used for several functions over Relay Chain. DOT token is needed by developers to start a new project and couple it to the Relay Chain as well as it is used for system-wide governance.
In Solana vs Polkadot comparison, here Polkadot too has an active forum of community, where you can discuss with like-minded people and developers Polkadot. There are also other mediums like Twitter, Reddit, GitHub, and an active Discord community.
Polygon or Matic network is known as an open-source Indian Blockchain protocol that strives to provide an interchain scalability solution that is intended to bring the adaptability and scalability of alt chains along with Ethereum’s security, liquidity, and interoperability.
It can be said that compared to older Blockchains like Ethereum, the cost in the adoption of Polygon is comparatively much lower as it smartly contracts as a POS (Proof-of-Stake) framework. The Polygon system comprises several members right from block creators, developers, clients, and stakeholders. To execute and cooperate with different Ethereum-based decentralized apps Polygon uses Sidechain.
As mentioned and like other majority Blockchains, Polygon Matic too is an open-source decentralized Blockchain platform, having contributors from all over the world.
Polygon follows the Proof-of-Stake (PoS) consensus mechanism where developers are expected to use the Matic network. This Matic network solves many problems by building a decentralized platform with the help of an adapted version of the Plasma framework. This network framework with finality on the main chain can provide solutions for faster and extremely low-cost transactions fees.
In the Polygon Blockchain protocol single sidechain, the high throughput of up to 100000 transactions per second can be achieved. While multiple chains too are be added for horizontal scaling which can increase its computing power.
Fast, low cost, and secured transactions are possible on sidechains with finality achieved on the mainchain and Ethereum as the first compatible Layer 1 base chain. The Proof-of-Stake (PoS) system enables the Polygon chain operators to be stakers.
Polygon Matic offers Smart contract functionality as a Proof-of-Stake (PoS) framework. Polygon Matic is a Blockchain protocol that is used for connecting Ethereum-compatible blockchain networks, but there is a difference. Here in Polygon Matic when a contract gets verified, tokens get automatically stored over the MATIC Sidechain. In this process, a specific smart contract by the name ‘RootChainManager’ now activates the ‘ChildChainManager’ which is also a smart contract. This further creates the proper measure of bolted or stored tokens over the MATIC network.
Whenever the client accepts tokens over the MATIC Sidechain, they can pass through the network with minor expenses and in this way, the client’s cost is minimized by using Polygon’s smart contract.
The native token of Polygon is known as MATIC that serves as the base resource of the Polygon system. This native token is utilized for exchange payments and is also used to store tokens to protect the Polygon network.
Polygon’s MATIC token has received an incredible cost surge following a tremendous increase in use. MATIC tokens can be found over most well-known decentralized as well as centralized-based trading exchanges. To make the purchase of MATIC tokens easier the whole crypto world is taking initiatives by making them accessible with both fiat and crypto.
Like other Blockchains, Polygon too has a large number of people forming their community base in form of GitHub, Discord, Community forums, Reddit, and also over Twitter and YouTube.
The release of the latest updates and their plans gets broadcasted over their forum and certainly one can interact with like-minded people over there.
Tezos is just another Blockchain cryptocurrency protocol that is scaling heights. Tezos was co-founded by Kathleen Breitman and Arthur Breitman, which they had been building since 2014 with a team of developers. Like Ethereum, Tezos is a smart contract and dApp platform that run on a decentralized network and use protocols that do not require trust between two parties. What makes it unique from other platforms is its self-amending cryptographic mechanism that prevents hard forks and thereby links the entire community.
Tezos is built to address various barriers that Blockchain adoption is facing like open participation, long-term upgradability, and smart contract safety. Tezos allows the network to implement new technological innovations as they emerge with its modular architecture and upgrade mechanism as it’s designed to provide safety and code correctness.
Tezos is an open-source Blockchain protocol that is supported by a global community of researchers, builders, and validators. Tezos has been recommended by many for public distributed ledger applications as it has a unique on-chain governance mechanism.
Speed, Security and Scalability
In Tezos, nodes play a vital function in verifying all transactions and links with the public distributed ledger. These nodes have a peer-to-peer (P2P) layer, the network shell, and the context database, also these P2P layers have a private key with a stamp of the proof of stake. To achieve the best connectivity across the platform, the Tezos dApp platform allows the exchange of known good peers. Such communication between nodes is encrypted and authenticated for security, safety, reliability, and the same gets confirmed by the P2P layer.
To monitor its performance on large-scale transactions Tezos executes scalability tests on Irmin and there lies an interface named network shell between the protocol and the network. This network shell plays a significant role in the platform by taking over blocks sent by peers and validating them against the current protocol.
Like other Blockchain platforms, Tezos too allows developers to write smart contracts and build Apps. Michelson is Tezos’s native smart contracts language that allows formal verification that is widely used in mission-critical environments like nuclear and aerospace. Formal verification allows a developer to prove the correctness of their smart contracts code mathematically.
Tezos functions up on on-chain governance that simply translates to that if you hold a stake in Tezos, you can also take part in governing the protocol. Under this mechanism, a coin holder can vote for future performance.
Tezos is a platform linked to a digital token, called a Tezzie or Tez. It is a decentralized Blockchain platform that is self-governing and establishes a true digital commonwealth. Here token holders get a reward for participating in the proof-of-stake consensus mechanism, as the platform is not based on the mining of Tez.
Tezos is one of those open-source Blockchain protocols especially for applications and assets to be supported by a global community consisting of researchers, builders, and validators. Tezos has a developer portal which is a place to engage in discussion related to Tezos protocol and where one can ask FAQ regarding Tezos protocol and the Tezos ecosystem. Therefore, Tezos has a great thriving developer community in form of forums and over social media.
The Tezos Foundation looks after the deployment of resources to entities and initiatives that will help to ensure the long-term success of Tezos. There is a grant evaluation process present in Tezos which are usually paid out in multiple installments. Also during the initial years in 2016 Breitman conducted an ICQ and received around $612,000 within 6 months.
Algorand is an open-source Blockchain protocol that is making itself into the news due to its high appreciation. It is simple and fast for developers to work upon Algorand as its unique combination of open-source Layer-1 capabilities opens up the world of new possibilities. Generally, smart contracts are slow to propagate and do not scale for real-world use-cases.
Algorand Smart Contracts (ASC1) with its Smart Contract arrives over to work upon these shortcomings which have slowed down the rate of adoption for Blockchain. Algorand’s ASC1s come with their trustless programs that execute on-chain, where users can be confident that the program was run without error and the results have not been tampered with. The ability to automatically enforce custom rules and logic has been provided in ASC1s to make the Algorand platform cost-effective and error-free.
Algorand is an open-source Blockchain protocol and its repository is publicly available for anyone to audit, use, and build.
Algorand functions upon the Pure Proof of Stake consensus mechanism to support two types of nodes to simultaneously optimize for more crypto transactions throughput and decentralization - relay nodes and participation nodes. Well, the difference between these two nodes is about configuration but not the software. Compared to other Proof-of-Work (PoW) protocols, in Algorand participants need not to solve cryptographic puzzles in order to propose or validate blocks.
Here in Algorand, the relay nodes function as network hubs and maintain connections to many other nodes. These relay nodes are used to efficiently communicate over the paths, ultimately reducing the number of hops and the transmit time of sending a message throughout the network. Other than these performing deduplication, signature checks, and other validation steps and then re-propagating only the valid messages are some of the work these nodes do. To decrease propagation time, these relay nodes are also often located at internet exchange points and anyone can run a relay node.
In the Algorand consensus protocol, these Participation nodes are run to communicate with each other through relay nodes. These nodes propose and vote on blocks on behalf of the user’s stake within the stake system of consensus algorithm when authorized by the user’s participation key. In Algorand everyone is encouraged to run a participation node, as they ensure the security of the Algorand Blockchain.
Speed is pretty good in Algorand as an Algo can be sent in under 4.5 seconds and that like your payment has almost instant confirmation once has been made.
Algorand maintains strict security at the consensus protocol level as well as over the network level, as security is of utmost importance in the Public Blockchain network. Algorand’s security is designed in such a way that it prevents powerful adversaries from corrupting enough users so as to control block generation. In Algorand during a network partition, the adversary is never able to convince two honest users to accept two different blocks for the same round, and in this way, it maintains the security.
Scalability is maintained in Algorand as it uses Pure Proof-of-Stake (PPoS) to randomly select a small set of block proposers and verifiers. Under this mechanism, the users need to receive a fixed number of messages in order to reach a consensus on the next block.
n Algorand Smart Contracts (ASC1) are segregated into two main categories, stateful and stateless. Here both types of Smart Contracts are written in an assembly-like language known as Transaction Execution Approval Language (TEAL), which can be interpreted by the Algorand Virtual Machine (AVM) running within an Algorand node. These TEAL programs can be written with the help of PyTEAL in Python language or even with a hand.
The native token in Algorand is known as Algo and all the key features of Algorand Blockchain are present in the Algo itself. Token grants were issued to the early backers and universities by Algorand Foundation for running relay nodes, to help bootstrap a scalable and reliable initial infrastructure backbone. As of now in the world of cryptocurrencies, Algo launched over 4 million NFTs that roughly translated into 95,000 SIAE members’ rights.
Algorand too has its own community member and help support group across social media, groups, and forums where discussion over Algorand projects happens. The community is rapidly growing as they have announced a grant of $20000 for successful startups from the Algorand Foundation.
While looking and comparing the five powerful Blockchain platforms mentioned, it looks certain that there is cut-throat competition amongst them. But, not to ignore those parameters over which one Blockchain protocol does pretty decent but another might falter.
As of now, we can only hope and speculate as crypto market capitalization are highly volatile and out of nowhere we can hear a new announcement any day, but let's not forget the potential those new generation Blockchain platforms called Ethereum killers!
Solana is an online blockchain network that is used to create a cryptocurrency as ethereum does and bitcoin. There is only one difference in it and ethereum is their fast speed at which transactions are completed. The newest addition to the ethereum blockchain network is able to perform up to 50,000 transactions per second which is the thing that makes it different.
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