welcome to money is freedom
a podcast
exploring how finance and freedom connect in our lives
created from thoughtful research
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this series brings you clear
meaningful insights into finance and beyond
in episode 20
we dive into the ongoing blockchain battle between
Ethereum and Solana
will explore their core differences in scalability
transaction speed
energy efficiency and ecosystem growth
is Solana truly an Ethereum killer
or does Ethereum's dominance in decentralization
give it an unshakeable edge
tune in to find out
which platform is better positioned
to shape the future of decentralized finance
NFTs and smart contracts
alright so um
let's jump into a topic that's been
causing quite a stir in the crypto world
Solana versus Ethereum
you've probably heard whispers out there about
Solana flipping Ethereum yeah
but what does that even mean
it's an intriguing phrase
it is it really is
so we're gonna break down this rivalry for you
we're using a 2024 comparison article from Coin Ledger
oh okay
they're crypto tax software company
yeah so they're deep in the crypto world
so their analysis is pretty up to date
hmm which is crucial in this rapidly changing space
yeah for sure
it really is it's a fascinating comparison
and you know the rivalry between these two
these two leading smart contract blockchains
has implications implications
that reach far beyond
just their individual market performance
yeah that's a good point
it's not just about it's not market cap
exactly so
our mission today is to understand why this rivalry
actually matters to you whether you're an investor
a developer or even just curious about
the future of blockchain technology
we're gonna unpack those
key differences between Solana and Ethereum
their strengths their weaknesses
and what it all means
for the evolution of this exciting space
awesome let's jump right in
with this comparison table from Coin Ledger
it gives us a really nice snapshot of key stats
and right away you can see some pretty stark contrasts
yeah the one that jumps out to me
is the difference in those daily transactions
as of September 2024
Salona is recording over 35 million daily transactions
wow it's a lot
while Ethereum sits at just over 1 million
that's a huge difference that is a big difference
and the same pattern emerges
when we look at new addresses
over 56 million new Salona addresses monthly
versus just 7 million for Ethereum
is this a sign is this a sign that things are shifting
is Ethereum's dominance being challenged
it's definitely a sign that something's happening
but you know before we jump to any conclusions
it's important to acknowledge Ethereum's legacy
it is the pioneer
it's the original smart contract platform
that laid the foundation for so many projects
we see today from DFI to NFTS
that first mover advantage is significant
you can't discount that absolutely not
no Ethereum has that history
in a massive community on its side
but those Salona numbers are hard to ignore
so what's driving that kind of growth
well a lot of it can be attributed to Salona's
unique consensus mechanism
proof of history it's this innovation that allows for
much faster transaction speeds
and significantly lower fees
compared to Ethereum's proof of stake
okay so we know it's faster and it's cheaper
but how does proof of history actually work
proof of history is ingenious in its simplicity
it timestamps every transaction
creating a verifiable order of events
so imagine like
a historical record
where each event is meticulously documented
and timestamped
this eliminates the need for energy intensive mining
as seen in proof of work systems
or the complex rounds of voting
required in proof of stake
so it's like having a built in timekeeper
for the entire network exactly
and this chronological record
allows Salona to process transactions in parallel
significantly increasing its throughput
so this translates to a much smoother
and more affordable user experience
it opens up possibilities for micro transactions
in applications that require high speed
low cost transactions
I can see how that would be a game changer
for things like gaming or even micropayments in like
the internet of things but
some argue that proof of
history sacrifices decentralization
for speed um
it relies on a network of validators
to maintain this chronological record
so what are your thoughts on that tradeoff
that's a really crucial point to consider
decentralization is often seen as a core value
in this blockchain space and with proof of history
there are concerns
about the potential for centralization
particularly
if the validator network becomes too concentrated right
however Salona proponents argue that
the network is designed to be sufficiently
decentralized
and that the benefits of speed and scalability
outweigh the potential risks
it's a debate that goes to the heart of what we
value in blockchain technology security
decentralization scalability and user experience
yeah it seems like Salona prioritizes
speed and user experience
even if it means making some trade offs
but that leads us to the million dollar question
can Solana really flip Ethereum
is that even the right way to frame this rivalry
flipping implies a complete takeover
which might be an oversimplification
ethereum has such a deep
rooted presence in the blockchain ecosystem
but it's clear that Salona's rapid growth
and innovative technology are shaking things up
it's more like a dynamic shift in the landscape right
a healthy rivalry
that pushes both platforms to innovate and evolve
precisely and this competition
ultimately benefits everyone involved
especially users like you
okay so instead of thinking about one winning
let's look at real world
projects that showcase their strengths
on the Ethereum side
we have the launch of Ethereum etfs in the US
bringing it closer to traditional investors
and major institutions like Black Rock
are building real world asset
tokenization projects on Ethereum
which speaks volumes about its growing acceptance
what's happening on the Salona front
Salona's making waves with the upcoming Salona Seeker
their own mobile phone
designed for a seamless crypto experience
wow they're also pushing the boundaries
with the Firedancer upgrade
which will delve into later
but these developments highlight
how salon is targeting a different
perhaps a more consumer focus segment of the market
a dedicated salon phone that's a bold move
it suggests a focus
on bringing blockchain technology to the masses
making it accessible and user friendly
but it's also a risky bet
considering the challenges
other companies have faced in that crypto phone market
it certainly is but it also speaks to Salona's ambition
and willingness to experiment
and push the boundaries of what's possible
yeah I like that right
I like that all right
let's shift gears and talk about something
we know you're interested in NFTs
how does this rivalry play out
in the world of digital art
and collectibles well
ethereum has been the dominant ecosystem for NFTs
hosting major market places and blue chip collections
but Ethereum's high gas fees
and sometimes sluggish transaction speeds
have created an opening for competitors
and that's where Solana's speed
and low fees come into play
right absolutely
Solana is attracting NFT creators and gamers
looking for a more efficient and affordable platform
it's a haven for new projects
and a breeding ground for innovation in the NFT space
know your passion for digital art
I think you'd be fascinated by the new wave of artists
and creators flocking to Solana
it's a vibrant community and
those low fees make it
easier for artists to experiment
and for collectors to acquire
unique pieces without breaking the bank
it's really interesting
it raises a thought provoking question
what's more crucial for the future of Nfts
is it sheer volume and establish players
yeah or a smooth and accessible user experience
that's a great question
we'll dive deeper into that later
yeah
but before we get too carried away with the excitement
we need to address the challenges and risks
associated with both platforms
every technology has its downsides
of course
no deep dive is complete without acknowledging
the potential pitfalls
so let's talk about the skeletons in the closet
what are some of the concerns surrounding Solana
well one concern is centralization
as we discussed earlier
proof of history relies on a network of validators
the cost of running a Salona validator is quite high
leading to a smaller
and potentially more centralized validator set
compared to Ethereum okay
another concern is its reliance on rust
a programming language that while powerful and secure
is less widely used than solidity
which is used for Ethereum smart contracts
this could potentially limit the pool of developers
building on Salona interesting
so while rust might offer
advantages in terms of security and performance
it might also create a barrier to entry
for some developers what about Ethereum
what are its Achilles heels
the elephant in the room is those infamous gas fees
which can make transacting on Ethereum quite expensive
especially during periods of high network congestion
and while Ethereum is moving away from the
energy intensive proof of work system
towards proof of stake the
environmental
impact of its past activities is still a concern
for some okay
so both platforms have their strengths and weaknesses
it seems like it's all about weighing the trade offs
to figure out
which platform aligns best with your priorities
but before we move on
there's one more issue that we need to address
the FTX collapse and its impact on Solana
there's a lot of uncertainty surrounding that event
can you shed some light on what happened
absolutely FTX had invested heavily in Solana
so when the exchange collapsed
it sent shockwaves through the Solana ecosystem
the price of Solana's native token
Sol took a significant hit
and there were concerns about the long term
implications right
but it's important to clarify that
FTX's final Solana holdings were eventually sold off
right yes
that's a crucial detail
while the initial impact was undeniable
the direct influence of FTX on Salona
has diminished over time so
it seems like the initial panic subsided
as the situation became clearer
it's a reminder that market sentiment can be volatile
and that it's crucial to differentiate between a
project's fundamentals
and the external forces that can influence its price
exactly it highlights the importance of due diligence
understanding the technology
the team and the overall ecosystem of a project
is Paramount when navigating the cryptospace
words of wisdom so we've explored the strengths
weaknesses and external challenges
facing both Solana and Ethereum
we've even touched upon their influence on
the world of NFTs but
there's one more piece of the puzzle that has me
particularly intrigued Fire Dancer
ah yes
Fire Dancer this is where things get really interesting
at least for those of us
who are captivated by the potential of
cutting edge technology
so for our listeners who haven't heard the buzz
tell us
what is firedancer
and why is it generating so much excitement
in the Salona community
Firedancer is a new validator client for Solana
and what makes it so groundbreaking
is its potential to drastically increase
Solana's already
impressive transaction processing speed
we're talking a target of
one million transactions per second
a million transactions per second
that's mind boggling how is that even possible
it's a combination of hardware
and software optimizations
that supercharged the network
in a live demonstration Firedancer
processed over 1.2 million transactions per second
on a single validator if it lives up to its promise
once fully integrated Solana could become the fastest
smart contract blockchain ever created
that's it's almost hard to comprehend
the implications of that kind of speed
it could revolutionize entire industries
from finance to gaming
to the way we interact with the internet
it's a glimpse into the future of blockchain
where speed scalability and efficiency become Paramount
but it's still early days right
Fire Dancer still under development and implementing
new technology at this scale
always comes with challenges
of course caution is always warranted
but the potential is undeniably enormous
all right we've covered a lot of ground
with this
first part of our Solana versus Ethereum deep dive
we've gone from what is Solana
to understanding this complex and dynamic rivalry
exploring its implications for investors
developers and everyday users
but there's so much more to unpack
indeed we've only scratched the surface
welcome back to our deep dive into the world of Solana
and Ethereum
as we've been exploring these two platforms
it's become clear that
this isn't just a technical comparison
no it's not
it's not right
it's almost like
we're witnessing a clash of philosophies
two different visions for the future of blockchain
you've got Ethereum the veteran
championing security and decentralization
above all else and Solana
the newcomer
pushing the boundaries of speed and scalability
willing to make certain trade offs
to achieve those goals
it's like the tortoise in the hair
each with its own approach to reaching the finish line
but in this story both are making significant progress
which raises a fascinating question
do we even need a single winner in this race
could different block chains coexist
specializing in different areas
serving different needs it's a compelling idea
imagine
Ethereum as the bedrock for high value transactions
complex smart contracts where security is Paramount
while Salonic caters to those high volume
low cost applications like gaming or micropayments
it's almost like the evolution of the internet itself
exactly from a few dominant platforms
to a diverse ecosystem of websites and applications
each with its own purpose
and that diversity
that specialization ultimately benefits everyone right
it drives innovation and gives users more choices
absolutely it empowers you to select the tools
and platforms that align
best with your individual needs
and priorities
so as we navigate this evolving landscape
how can we as users
investors or simply curious minds make sense of it all
what questions should we be asking ourselves
I think
the key is to understand your own needs and priorities
what are you looking for in a blockchain platform
what are your must haves and your nice to haves
if security
and a well established ecosystem are Paramount
with a vast array of DFI
and NFT projects already in place
ethereum might be the right fit
but if speed affordability
and a seamless user experience are more important
then Salona could be more appealing
and it's important to remember
that this landscape is constantly evolving
both Ethereum and Salona
are actively addressing their weaknesses
pushing the boundaries of what's possible
it's almost like watching a live sporting event
the rules are being rewritten as we speak
and the players are constantly adapting
and improving their game so doing your research
staying informed
and even experimenting with both platforms is crucial
exactly get hands on
explore the different ecosystems
and see what resonates with you
you might even
find yourself using both Ethereum and Salona
for different purposes leveraging their unique strength
speaking of unique strengths
let's circle back to the comparison table
from Coin Ledger one thing that stood out was
the difference in programming languages
ethereum uses solidity while Salona relies on rust
what are the implications of that
for developers the choice of programming language
can have a significant
impact on the development process
solidity being similar to Javascript
is more familiar to a larger pool of developers
it offers a certain level of accessibility
but I've heard arguments that rust
well less common
is a more robust insecure language
especially for complex applications
that's true
rust is known for its focus on memory safety
and preventing common coding errors
which are crucial when dealing with sensitive data
and financial transactions
it might have a steeper learning curve
but the benefits in terms of security and reliability
are substantial so it's another trade off
accessibility versus security
it's up to developers to weigh those factors
and choose the language
that best suits their project's goals
and that's what makes the space so dynamic
there's constant experimentation
a drive to push the boundaries
and find better solutions
okay before we wrap up this part of our deep dive
let's revisit their consensus mechanisms
ethereum is transitioning to proof of stake
while Salona continues to champion its unique
proof of history proof of history is really
the heart of Salona's speed and scalability
by timestamping every transaction
and creating a verifiable order of events
it removes the need for energy intensive mining
or complex verting processes
it's like a built in notary for every transaction
ensuring everything is accurately recorded in timestamp
precisely and that
efficiency is what enables Salona
to achieve those impressive transaction speeds
and low fees we discussed earlier
but we also discussed the concerns about centralization
with proof of history
it relies on a network of validators
and some argue
that this introduces a potential point of vulnerability
how do you see this debate playing out
the question of centralization
versus decentralization is a complex one
it's a spectrum
and different blockchains find their own balance
based on their priorities
Solana's design
aims to achieve sufficient decentralization
while prioritizing speed and scalability
it seems like there's no easy answer
no clearcut winner in this debate
it's about understanding the nuances
weighing the pros and cons
and deciding what factors are most important to you
exactly this deep dive is all about
empowering you with the knowledge
to make those decisions
to navigate this complex and evolving landscape
alright listener
that brings us to the
end of part 2 of our Solana versus Ethereum exploration
we've delved into the philosophical differences
the practical implications for users and developers
and the technical intricacies that set these
two blockchains apart but our journey isn't over yet
indeed we've only scrapped the surface
welcome back listener to the final part of our Solana
versus Ethereum deep dive
we've explored their strengths and weaknesses
their innovations
and even pondered the possibility of Solana phones
now it's time to tackle the big question
what does this rivalry tell us
about the future of blockchain
well we've seen how these two platforms
are pushing the boundaries of what's possible
each in their own way
but is it a winner take all scenario
or are we moving towards a multi chain future
where different blockchains can coexist
and serve different purposes
that's a debate that's
capturing the imagination of the entire cryptospace
on one hand
you have the undeniable power of network effects
hmm Ethereum being the pioneer
has built this massive ecosystem
it's the go to platform for many
and that kind of momentum is hard to overcome
it's true Ethereum has a gravitational pull
but that doesn't mean there isn't room
for other planets in this blockchain universe
we're already seeing signs of a multichain future
emerging
Solana with its focus on speed and scale ability
is attracting a new wave of projects
in users who prioritize those aspects
and it's not alone does
a whole constellation of blockchain platforms emerging
each with its own unique strengths and target audience
some are focusing on privacy
others on interoperability
and still others on specific use cases
like gaming or supplychain management
this diversity is a sign of a healthy
and evolving ecosystem
it reminds me of the early days of the internet
we started with a few monolithic platforms
but then it exploded into this diverse
ecosystem of websites and applications
each serving a specific purpose
that's a great analogy and
just like the internet evolved
to accommodate a wide range of needs
and preferences so too is the blockchain space evolving
so instead of asking which blockchain will win
maybe the more important question is
what kind of watching ecosystem do we wanna see
one dominated by a single platform
or one that's diverse
vibrant and caters to a wide range of needs
I think the most exciting future lies in
embracing collaboration and interoperability
imagine a world where different blockchains
can seamlessly communicate with each other
where users can easily move their assets
and data across different chains
and developers
can leverage the best features of each platform
to build truly innovative applications
that's the vision of a truly decentralized future
where power is distributed
innovation is unleashed
and users have the freedom to choose
the tools that best serve their needs
and that's what makes this debate so compelling
it's not just about technology
it's about shaping the future of the internet
of finance
of how we interact and transact with each other
it's about empowering individuals
and fostering a more open and equitable world
this rivalry between Salona and Asserium
and the emergence of other blockchain platforms
is a testament to the power of innovation
and the relentless pursuit of better solutions
and it's a reminder
that the future of blockchain isn't predetermined
it's being shaped right now by the choices we make
the projects we support and the vision we embrace
so as we wrap up this deep dive
I encourage you to continue
exploring this fascinating space
stay curious stay informed
and be a part of the blockchain revolution
that's it for our deep dive into the world of Solana
and Ethereum we hope you've enjoyed the journey
and that
you're now equipped to follow this exciting space
with a more critical and informed eye
remember knowledge is power
and in the ever evolving world of blockchain
staying informed is key don't forget to follow the show
for more deep dives into the most
exciting and thought provoking topic
shaking our world and we'd love to hear for you
what aspects of the Salana and Ethereum ecosystems
do you find most interesting
let us own a comments until next time
stay curious and keep exploring