Jose Fernandez da Ponte, a representative from PayPal, emphasized the slow transaction speeds of Ethereum at the Solana Breakpoint event.
Scalability is one of Ethereum’s most significant challenges, which is particularly evident in high-traffic environments. Fernandez emphasized that Ethereum was unable to meet the necessary network capacity of at least 1000 transactions per second.
The features that PayPal required in terms of speed and the capacity to integrate efficiently into an increasing number of transactions were present in Solana. The part of PayPal that deals with cryptocurrencies first thought about using Ethereum as a payment network, but they quickly saw its problems.
The team subsequently began to investigate alternative solutions, ultimately selecting Solana due to its real-time payment processing capabilities. Solana’s capacity to execute a greater number of transactions than other blockchains rendered this move feasible, as it aligned with PayPal’s future payment strategies.
Fernandez also identified Solana’s Token Extension capabilities as a critical factor in her decision to select Solana, in addition to its rapid transaction speed. Built-in to support enterprise-class applications, Token Extensions offer new business standards and extended use cases.
In order to improve the functionality and efficacy of its PYUSD stablecoin, PayPal intended to implement these features. Payment confidentiality and transaction costs are the two primary concerns in crypto payments, as per Fernandez. Solana offers optimal solutions for both.
Additionally, these extensions allow PayPal to improve the features of PYUSD, thereby increasing its appeal to both businesses and potential customers. As a result, Solana emerged as the optimal blockchain solution for the organization’s ongoing payment system enhancement.
PayPal has found token extensions to be particularly beneficial in its pursuit of becoming a prominent stablecoin by utilizing PYUSD. This feature facilitates a more flexible transaction model and expedites resolution, enabling users to engage with the stablecoin. PayPal selected Solana to provide the optimal user experience in blockchain and digital payments.
The market value of PYUSD increased to over $650 million as a result of PayPal’s transition to the Solana network. This expansion places PYUSD in close proximity to USDT, which has a market capitalization of $686 million on Solana.
This increase demonstrates that the market has reacted favorably to PayPal’s decision to implement Solana in stablecoin operations. Solan has become a center for blockchain development due to its high computational speed, which has attracted developers and institutions.
