PayPal's Jose Fernandez da Ponte highlighted Ethereum's slow transaction speed at the Solana Breakpoint event.
PayPal chose #Solana over #Ethereum because of its high transaction processing speed.
An important point in PayPal's choice was the Solana Token Extension feature, which enhances the usability of the stablecoin PYUSD.
One of the main problems with Ethereum is scalability, which becomes evident in high-traffic environments. Fernandez noted that the necessary network must be able to handle at least 1,000 transactions per second, something Ethereum has yet to achieve.
Solana had the characteristics #PayPal needed in terms of speed and the ability to effectively integrate with the growing number of transactions. Initially, PayPal's cryptocurrency department considered Ethereum for its payment network, but soon realized its shortcomings.
So the team started looking for alternatives and eventually chose Solana, which offers real-time payment processing. The move was possible because Solana could handle more transactions than other blockchains and was in line with PayPal's future payment plans.
Mr. Fernandez also cited Solana's token expansion feature, in addition to its high transaction speed, as a key factor in choosing Solana. Token extensions provide new business standards and advanced use cases built in to support enterprise-class applications.
PayPal wanted to introduce these features to enhance the convenience and utility of the stablecoin PYUSD. According to Fernandez, the two main problems of cryptocurrency payments are payment privacy and transaction costs, and Solana offers the best solution to these two issues.
These extensions also allow PayPal to improve PYUSD and make it more attractive to businesses and customers. Thus, Solana becomes the best blockchain option to further develop the company's payment system.
Since PayPal moved to the Solana network, the market value of PYUSD has grown to over $ 650 million.
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