Bank of America Claims Solana Cryptocurrency “Could Become the Visa of the Digital Asset Ecosystem”


13 ene 2022 13:50 GMT

Solana offers its clients low transaction fees, ease of use, and scalability relative to other cryptocurrencies, according to the crypto asset specialist.

Bank of America crypto asset strategist and analyst Alkesh Shah he claimed this Tuesday that the cryptocurrency Solana (SOL) “could become the Visa of the digital asset ecosystem”, comparing it to the popular credit card system.

In his report addressed to his clients, the expert pointed out that Solana has more than 400 applications in its network, which contains everything from peer-to-peer exchanges to NFT markets.

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In addition to comparing this digital currency to the world’s largest credit card network, Shah noted that in comparison, Ethereum it would become a ‘blockchain’ intended for “high value transactions and identity, storage and supply chain use cases”.

Solana prioritizes scalability, but a relatively less decentralized and secure blockchain has its advantages and disadvantages, illustrated by various network performance issues from the start.Ethereum prioritizes decentralization and security, but at the expense of scalability, which has led to periods of network congestion and transaction fees that are sometimes greater than the value of the transaction being sent,” he added.

According to the portal Decrypt, theoretically Visa is capable of performing at least 24,000 transactions per second (TPS), but on average it reaches about 1,700 transactions, Etherum about 15 TPS, while Solana, according to its own conclusions, is capable of reaching the limit of 65.000 TPS.

Likewise, Solana stands out for having settled more than 50,000 million transactions since it was launched, having more than 11,000 million dollars in total insured value and hosting more than 5.7 million non-fungible tokens (NFT).

Shah also highlighted that Solana offers its clients low transaction fees, ease of use, and scalability relative to other cryptocurrencies. “Its ability to provide high performance, low cost and ease of use creates a blockchain optimized for consumer use cases such as micropayments, DeFi, NFT, decentralized networks (Web3) and games“, concluded the expert.

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