Whether it is the LSD protocol stimulated by the airdrop information on Solana, or the NFT market where the floor price has quietly doubled, Solana has shown a good development trend in this round of bull market. Therefore, the title of Solana "Ethereum Killer" has been brought up for discussion again.
If a blockchain’s primary goal is to have low fees, then the value of its token cannot come from transaction fees alone. Contrast this to Ethereum, where the value of Ethereum grows from the fact that users pay (and partially burn) ETH for each transaction, making it expensive for users but beneficial for those who hold ETH.
On the other hand, to ensure the security of a blockchain, some form of value proposition is required. How does Solana solve this problem? By charging state rent to DApps teams. By charging voting fees to validators, which validators must pay to participate in voting on blocks. Leaving token economics aside, there is also an oft-noted issue with Solana’s performance validator hardware requirements… However, despite the ETH maxis bashing this, this is not a “centralization” issue — Solana validators are decentralized (Satoshi factor).
There’s also the question of how smart contracts work on Solana and the centralization/trust issues that come with that…Solana contracts work on a literal on-chain inheritance structure, e.g. all NFTs are sub-contracts of a master NFT contract controlled by a Metaplex multi-signature. With all of these aspects, it would be a huge mistake to say Solana is less “decentralized” than, say, Ethereum… This isn’t a question of decentralization… but rather a question of autonomy, aka censorship resistance.
While Ethereum achieves immutability, autonomy, and censorship resistance, at least in theory, and charges users a high premium accordingly, Solana is cheap and passes the security costs on to validators and DApp providers.
Therefore, in general, Solana DApps will have a harder time getting trust minimization from their teams (impacting autonomy), and in theory, the economies of scale for Solana validators should at least be greater than for Ethereum validators (decentralization). Therefore, if you believe that the USP of a blockchain is censorship resistance/autonomy, then ETH is still a better choice than SOL because it is better suited to the unique purpose of a blockchain.
The reason why SOL can get a bull market
First of all, the first reason why Solana has attracted so much attention is that it has become a leader in the payment field and has been selected by the international payment giant Visa as the underlying payment public chain. Although some experts believe that blockchain cannot subvert traditional financial payment and remittance methods, Visa's support makes Solana highly favored. In September this year, Visa chose Solana among many public chains for settlement pilot, which undoubtedly casts a golden light on Solana's future.
Secondly, the exploration of Maker DAO also adds a lot of color to Solana. Maker DAO is the largest decentralized stablecoin issuer on the Ethereum chain, and their blueprint planning goes far beyond this. According to the final battle plan released by the founder of Maker this year, they are likely to choose Solana as the final form of Maker's application chain. Maker DAO occupies an important position on Ethereum and recognizes Solana's technology and future development. If Solana is finally chosen, it will bring huge traffic and funds to Solana.
The third reason is Solana's obvious development progress. A project that is nearly destroyed but still continues to upgrade its development technology in a bear market is simply not possible in the blockchain world! And Solana is the only one. Not only did the official launch of the Ethereum-compatible Neon EVM mainnet in July this year, eager to integrate more applications from Ethereum, but also made the first blockchain phone - Solana Saga. One reason is that it is still trying to be reborn and continue to output when it is on the verge of death and bear market, which has given people an impulse to love it again.
The last reason is also the one with the greatest potential. Jump Crypto and Solana have jointly developed a node client called Fire Dancer, and they have reached the first milestone. In the test environment, the TPS is as high as 1.08 million! ! At the beginning, when Solana was tested, the TPS of 60,000 was unbelievable. According to the analysis of Messari, a blockchain analysis company, although there are still obstacles to overcome in reaching 1.08 million TPS, the success of Fire Dancer will give Solana the opportunity to achieve CeFi-level trading experience for DeFi, and even allow blockchain to truly integrate the use of traditional finance.
To sum up, Solana is still a project with great appreciation potential at present, so if you can withstand the risk of selling pressure and are optimistic about Solana from the news and technical aspects, you can hold SOL during the pullback and reach the bull market.
Solana's current ecological development is booming, and many people even believe that the price of Solana will continue to soar in the future, and even be on par with ETH.
The following are the Solana ecosystem projects:
DeFi (decentralized finance): decentralized lending protocol marginfi;
Liquidity staking platform Jito; oracle Pyth Network
NFT (Non-Fungible Token): Decentralized NFT Marketplace Magic Eden; NFT Series Mad Lads
DePIN (Decentralized Physical Infrastructure Network): Decentralized infinite network Helium; GPU computing network Render Network
Payment: Payment giant Visa; stablecoin USDC
