Ethereum Vs. Solana: A Complete Comparison

In the world of blockchain technologies, two of the best-known names are Ethereum and Solana. These are both cryptocurrency ecosystems that have advantages for attracting investors, but they also have growing competition as well. So, how do the Ethereum and Solana networks differ from each other? In this guide, we will make a comprehensive analysis and give you an in-depth answer to this question.

What Is Ethereum (ETH)?

Ethereum was launched in 2015 to serve a large number of decentralized applications. Today, this ecosystem is used in both the DeFi sphere and NFT. All this is supported by the use of smart contracts that automate transactions and make them more transparent.

The Ethereum blockchain asset is the same name coin abbreviated ETH, which is used to pay gas fees for transactions. These fees have been considered expensive, but the network's transition from a Proof-of-Work (PoW) mechanism to Proof-of-Stake (PoS) one has significantly improved its scalability and power consumption, so costs have decreased as well. For these reasons, as well as its high security options, the Ethereum network attracts a lot of investment in its coin, increasing its overall capitalization.

What Is Solana (SOL)?

Solana is another platform for NFTs and dApps. It was created in 2017 in order to solve the scalability issues that other blockchains (Ethereum, in particular) faced. These problems arose due to the growing interest in cryptocurrency, which led to network congestion and poor bandwidth. Solana utilizes technical methods that are meant to find solutions to these problems.

The main tool of the Solana network is the Proof-of-History (PoH) mechanism, which improves scalability. Thanks to it, transactions on the network run at a high speed, and the fees that are paid out in Solana coin (SOL) are also low, compared to Ethereum. This advantage makes the Solana blockchain network a contender for high-frequency dApps.

Ethereum Vs. Solana: Key Differences

Both the Ethereum and Solana blockchains are popular solutions for investors due to the large number of connected applications. At the same time, they obviously have several differences that affect the way the networks operate. Let's look at them in more detail.

Ecosystem Maturity

Both networks differ even in their age: Ethereum is 2 years older than Solana. Despite this small difference, Ethereum is the primary network for the largest DeFi applications (such as MakerDAO and Uniswap). The most popular NFT marketplaces are also built on Ethereum.

Solana, on the other hand, is inferior to Ethereum in terms of maturity criteria, and unlike its competitor, it is in its infancy. At the same time, Solana is actively developing and even has several dApps. The network has its own ways of promotion: it attracts more and more developers by launching marketing strategies (e.g., hackathons).

Consensus Mechanism

As we’ve already mentioned, the Ethereum network switched from the PoW to the PoS mechanism due to the fact that the second one is much faster in transaction processing speed. It is also considered more decentralized and secure. PoS allows many more crypto transactions to be verified, and what is more, it reduces power consumption.

Solana also utilizes PoS as well as a unique PoH mechanism that fixes the timing of transactions. It helps blockchain validators to agree on the order of transactions without active communicating, speeding up the processes this way. Solana is a secure network thanks to the PoS mechanism and also has a faster mode of operation using PoH.

Transaction Speed

This is one of the most important differences between the Ethereum and Solana networks. After Ethereum's upgrade and its transition to the PoS mechanism, the network has become able to process 20-30 transactions per second (TPS). Experts believe that this number may increase over time.

Solana differs greatly in this criteria. Transactions on this network are processed at 50,000 TPS and higher. This ability makes the Solana network one of the fastest blockchain networks in the cryptosphere.

This difference between Ethereum and Solana transaction speed is associated with the different priorities of the networks: the first one prioritizes decentralization, while Solana focuses more on providing high bandwidth.

Fees

Before making transactions on a particular blockchain, you have to find out the fees. Solana is more favorable than Ethereum due to its high bandwidth and speed. For example, the average gas fee on the Ethereum network is approximately 2 gwei, that is about 0.17$. The commission in Solana is only 0.0001 SOL per transaction, that is 0.01 USD.

The difference is even more apparent when you consider blocking times and blocks’ sizes. The Ethereum network’s blocking time is 13 seconds, and a block’s size is 70 transactions. Solana has a blocking time of 0.4 seconds and a block size of 20,000 transactions.

Ethereum Vs. Solana: Use Cases

The Ethereum and Solana networks are actively used in the DeFi, NFT, and Web3 gaming fields. At the same time, each blockchain functions differently in these spaces. Let's take a closer look at the examples of two blockchains’ use cases.

DeFi (Decentralized Finance).

• Ethereum: Platforms help to lend, exchange, or receive crypto assets without intermediaries. Lending protocols (Aave) and decentralized exchange ones (Uniswap) assist with this

• Solana: Projects such as margin trading (Mango Markets), automated market makers (Raydium) and others are attracted to this network. The difference from the Ethereum network is lower costs but greater security risks.

NFT (Non-Fungible Tokens).

• Ethereum: Ethereum-based NFT markets (for example, OpenSea) are mostly connected with digital art and collectibles sales. Many projects here are characterized by large trading volumes.

• Solana: Solana-based NFT projects (e.g., Okay Bears) also achieve high trading volumes, leveling up with Ethereum in some periods.

Web3 Gaming.

• Ethereum: In this sphere, the Axie Infinity game is known for making the model of playing for money popular when ETH coins were used as in-game assets. However, in the gaming field, the network has almost stopped working due to high commissions and scalability issues.

• Solana: Games on Solana are seamless and accessible due to crypto’s high speed and low commissions. For example, Star Atlas, which allows for graphically rich game environments inside the blockchain.

Ethereum Vs. Solana: Head-To-Head Comparison

Now you know the main differences between the Ethereum and Solana blockchains, as well as their use cases. We suggest you study other details of each network to make your decision about choosing one of them easier.

We have compiled all the information in the table below for your convenience.

Crypto	Coin issue	Mechanizm	Goal	Price	Speed	Scalability
Ethereum (ETH)	Coin issue No maximum emission limit	Mechanizm Proof-of-Stake (PoS)	Goal A reliable decentralized platform for dApps with high security	Price Approximately $2,326.03	Speed 13 seconds to be confirmed	Scalability 20-30 TPS
Solana (SOL)	Coin issue No maximum emission limit, but with an initial 574 in total	Mechanizm Proof-of-Stake (PoS) and Proof-of-History (PoH)	Goal An improved version of platforms with higher speed and lower cost	Price Approximately $166.29	Speed 0.4 seconds to be confirmed	Scalability 50 000 TPS

Ethereum Vs. Solana: Which Is Better To Buy?

Both the Ethereum and Solana networks are very promising in terms of platform development and potential returns. Ethereum, for example, has a high trading volume in the crypto market, and is therefore more widespread and safer. At the same time, slow transaction processing speeds and high fees form the main problems of the blockchain.

Solana, on the other hand, boasts high bandwidth, as it was originally focused on it. Commissions here are also significantly lower than in Ethereum. However, this network is not yet as mature, and this fact raises questions about its full decentralization and security as well. Nevertheless, Solana's achievements and practical solutions to some of the problems Ethereum faces give it an advantage and an opportunity to take the lead in the long term.

When choosing a blockchain to work with and a coin to invest in, focus only on your priorities and preferences. Also, monitor the cryptocurrency market to choose the most successful period for investment. Additionally, to always be up to date with the latest news and learn how to work with cryptocurrencies efficiently, read our Cryptomus blog, where you will find a lot of useful guides and articles.