on the crypto
More than a way to store and transmit value, Ethereum is a global computing platform that can be programmed for user-created software and services called decentralized applications (dApps). Ethereum's industry leadership and broad ecosystem of projects give it a lasting edge that rivals will struggle to replicate.
With a value of $ 404 billion, Ethereum is the second largest cryptocurrency by market volume. It hosts many of the major dApp projects, including OpenSea, the most popular Non-Fungible Token (NFT) market. NFTs allow people to exchange digital proof of ownership on the blockchain, usually in the form of art. The platform is also home to burgeoning metaverse platforms such as The Sandbox, which is worth $ 4,2 billion.
DApp projects are a big deal for Ethereum investors because they use the Ether platform's native token (the unit that determines its market cap) to transact and pay taxes on the network. That said, Ethereum's popularity has led to some challenges with the network's capacity.
With a transaction speed of 15 per second, Ethereum has lagged behind newer blockchains such as Solana, which can handle 50.000 per second. But its strong branding and respected development team are a big reason why it's still the platform of choice for most users. Ethereum is also working to address some scalability challenges through an update called the Consensus Layer, which is expected to speed up its transaction verification system.
Founded in 2017 by Qualcomm software engineer Anatoly Yakovenko, Solana pushes the limits of blockchain technology. The platform's unique design and blazing speed put it years ahead of the competition. Plus, its strong development team could make sure it stays there.
As mentioned earlier, Solana can handle 50.000 transactions per second, making it arguably the fastest blockchain in the world. The platform achieves this through some key innovations. Unlike Ethereum, which uses a proof-of-work (PoW) system where miners solve puzzles to upgrade the blockchain, Solana uses proof of stake (PoS). Its miners verify transactions using the coins they already own, speeding up the process.
Solana augments its PoW system with a complementary algorithm called proof-of-history (PoH), which records time stamps on the blockchain to help speed up the transaction verification process.
With the speed issue resolved, Solana's developers are now focused on reliability. Solana recently faced some major disruptions due to duplicate transactions and other challenges. And the team is working on a solution to these problems (although they haven't provided many specifics), which could help attract more dApp development and position Solana for lasting success.
Cryptocurrencies are a notoriously volatile asset class, but maintaining a long-term perspective is key as it helps Investors to avoid selling at the wrong time. It is impossible to predict when the current cryptocurrency market will end. But Ethereum and Solana can help fuel a rebound due to their strong brands and impressive technical capabilities.
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