Solana Could Become The ‘Visa Of Crypto,’ Bank Of America Strategist Says

Parasshuram Shalgar
January 13, 2022 Updated April 17, 2024
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Solana marred by outages this week

Solana is one of the crypto giants contributing $47 billion to the crypto market. The currency came into existence in 2020 and has been on an upward spiral ever since. Bank of America states that Solana could shortly become the ‘visa of crypto.

Coin Telegraph reports that Bank of America will acquire Ethereum’s market profit because it enables a series of advantages during transactions and other uses. More than 50 billion transactions and around 5.7 non-fungible tokens are used in the crypto market. However, various critics condemn the move due to the decentralized network and long-term viability.

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Solana Brings Several Advantages To The Table

Coin Telegraph quoted Bank of America’s digital asset strategist Alkesh Shah saying, “Its ability to provide high throughput, low cost, and ease of use create a blockchain optimized for consumer use cases like micropayments, Defi, NFTs, decentralized networks (Web3) and gaming.”

“Ethereum prioritizes decentralization and security, but at the expense of scalability, which has led to periods of network congestion and transaction fees that are occasionally larger than the value of the transaction being sent.” Solana prioritizes scalability, but a relatively less decentralized and secure blockchain has tradeoffs, illustrated by several network performance issues since inception,” he added.

The data show that there is more than 1,700 visa transaction each second, the visa network is equipped to handle 24,000 transactions per second. The efficiency of Ethereum is 12 transactions per second at present; on the other hand, visa transactions for Solana can reach up to 65.000 transactions per second.

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Recent Issues Are A Matter Of Concern

Solana has recently witnessed several significant network problems, including withdrawal problems on July 12. The reports suggest a halt in performance on January 7 and a DDoS attack on January 5. Solana also encountered network congestion due to mass botting last year in December.

Austin Federal, communication head at Solana Labs, stated that the developer is constantly eliminating the network and performance issues to improve the transaction and optimization of other services. The team of professionals is committed to providing the best experiences in the market and upscaling the growth graph by introducing advanced attributes in the system.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Parasshuram has been online in various capacities as a pro-blogger, top researcher, and now a senior editor at CoinGape.com. He has over 14 years of experience in the field of online publishing. Mr Shalgar can be reached at [email protected].
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.