Elrond vs Solana — Blockchain Comparison
Bitcoin and Ethereum blockchains set standards for public ledgers in the crypto industry at a high level. Yet, more platforms emerge on and off to solve issues that existing providers cannot address.
Elrond vs Solana is a comparison of two high-performance blockchains with impressive potential. They aim to outperform well-established competitors and fill their niche in the vast crypto market. Let’s learn more about both public ledgers and find out the ways in which they are similar and different.
What Is Elrond?
This public ledger was launched in 2020. It positions itself as a scalable, fast, and secure platform for decentralized apps. The developers took into account the shortcomings of other projects and came up with a platform that can meet the demands of DeFi, NFTs, and peer-to-peer transactions.
Elrond has the real utility to serve as a platform for smart contracts and the new internet economy. Moreover, its Arwen Virtual Machine for DeFi is one of the most powerful tools for creating blockchain platforms.
What Is Solana
The concept of Solana was designed back in 2017, though the platform was launched in 2020. The main intention of developers was to encode passages of time as data, which led to the creation of a unique permission-less system — the proof of History (PoH) protocol.
Solana enables developers to create their own decentralized apps on the platform. It offers short processing times and low fees.
Another unique part of the Solana ecosystem is Serum — a noncustodial DEX created to deal with issues of DeFi.
Here are ways in which these two worthy competitors may be compared to each other.
Solana features a PoH consensus mechanism versus Elrond’s PoS. The latter is the standard mechanism that ensures the work of the blockchain by using validators. The validating power, in this case, depends on the number of coins a validator has.
At the same time, PoH is regarded as a game changer by both users and experts, as alongside PoS protocol, it creates a unique flow of transactions. Basically, a series of hash transactions with PoH represent verifiable orders of events with time stamps that allow Solana to maintain high speed without compromising security or salability.
The current processing capacity of Solana is about 50,000 transactions per second (TPS). However, its theoretical limit is claimed to reach 700,000 TPS.
The processing capacity of Elrond is 15,000 TPS. The limit is not strictly defined but is claimed to be hundreds of thousands. Technically, in terms of transaction speed, Solana is years ahead of Bitcoin, Ethereum, Elrond, and most other blockchains.
As for scalability, Elrond features the concept of sharding or splitting the blockchain. Unlike competitors, this platform uses three types of sharding: state, transactions, and network sharding.
At the same time, Solana has its own approach to scalability issues. It relies on a Byzantine Fault Tolerance (BFT) mechanism, which is also called Tower Consensus. It features PoH to reduce latency, which leads to increased scalability opportunities without compromising censorship resistance and decentralization.
An example of Elrond’s use cases is their launch of Maiar global payment system and wallet that suports all kinds of assets from BTC to EGLD. The system is expected to become quite popular since it offers all the same features as GooglePay, PayPal, and Venmo — only with lower fees and without giving up personal information.
In its turn, Solana has Mango Markets — Serum-based DeFi marketplace operating on Solana, Star Atlas – play-to-earn NFT game space, and Raydium — Solana-based Automated Market Maker (AMM).
It’s somewhat difficult to outline what public ledger is the winner in this comparison. After all, both use innovative technologies that other platforms do not have. Yet, in terms of transaction speed and consensus mechanism, Solana is an absolute winner. When it comes to scalability and use cases, both platforms score high.
You may swap these coins on https://godex.io/ or other exchange platforms if you feel like diversifying your investment portfolio.