Bank of America has told clients in a research note that the Solana blockchain could become the “Visa of the digital asset ecosystem” as it focuses on scalability, low transaction fees and ease of use.
Solana experienced an explosion in adoption in 2021 and has so far settled over 50 billion transactions, while global payments giant Visa processed 164.7 billion transactions in the year ended September 30.
In the note, Bank of America analyst Alkesh Shah wrote the network has over $11 billion in total value locked and has been used to mint more than 5.7 million non-fungible tokens. Per his words, Solana is optimized for consumer use cases such as micropayments and gaming.
The analyst wrote that Solana “prioritizes scalability, but a relatively less decentralized and secure blockchain has trade-offs, illustrated by several network performance issues since inception,” while Ethereum prioritizes “ decentralization and security, but at the expense of scalability, which has led to periods of network congestion .”
Shah suggested Solana and other blockchains could grab market share from Ethereum over time and will start to distinguish themselves.
Source: https://www.cryptocompare.com/email-updates/daily/2022/jan/13/
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