The strategist of the Bank of America predicted that Solana blockchain networks may grab a position in this crypto industry like Visa in the traditional system.
Solana is a 5th ranked crypto asset in this crypto industry and also this crypto project is popular for its high Scalability to process bulk transactions. However, this crypto project is known for its efficient and high scale transactions but in recent months Solana grabbed attention because of Network outages because of high transactions load.
Alkesh Shah, the strategist of Bank of America, recently published a research note on the Solana project. Through the research note, Alkesh predicted that Solana is a dominant competitor of the Ethereum blockchain network.
Alkesh said that Solana can be used in the micropayment system because of the low cost and high scalability of the network. And also it is better for the web3 and NFTs based projects.
“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.”
Strategists also said that low-cost transactions through Solana Network is helping the Sola token to take a significant share of the Ethereum blockchain network, in terms of Market cap.
Further Alkesh quoted the statement of Business Insider and admitted that Ethereum is better for high-value transactions because of its highly decentralized nature.
“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.”
Alkesh noted that the ability of the Solana Network to handle 2,4000 tps is very high, more than Visa’s 1,700 TPS. On the other hand, Ethereum has only 15 TPS on its mainnet.
Besides all this appreciation, Alkesh noted that people have less trust in Solana because of its lack of decentralization issues. The Solana team is inclined to bring better scalability and high efficiency in the network instead of decentralization based trust.