Until recently, no one could have imagined how cryptocurrency and blockchain technology would change the digital world. Today, we can already witness new revolutionary concepts and business models emerging in the infrastructures of the blockchain ecosystem. Non-fungible tokens, DeFi, and smart contracts have become the most popular trends and most talked-about topics in the last few years. And as the demand for such blockchain-based services continues to hit the market, the need for blockchain platforms to provide up-to-date solutions has also grown enormously.
The Avalanche vs. Solana comparison draws its footnotes from such discussions and concerns. Which of these two projects is the most suitable option for the development prospect? Or Can Avalanche and Solana become great alternatives to Ethereum?
The following detailed article will help you discover the key differences between Solana and Avalanche blockchains based on various aspects and identify the optimal pick for you according to their functionality and popularity.
Introduction of Avalanche
Run by Ava Labs, Avalanche (AVAX) is a proof-of-stake blockchain-based network that hosts custom blockchain platforms and decentralized apps. Due to its lowest fees and swift transactions, Avalanche can become a perfect alternative to the costlier and slower Ethereum.
Another noticeable aspect is Avalanche Security. Overall, the platform is secure as it uses the consensus mechanism and solid protection measures to ensure the safety of users building on the network.
As for the infrastructure of Avalanche, it is built around a system consisting of three interoperable blockchains:
- Avalanche C-Chain (Contract Chain) enables the creation of smart contracts.
- X-Chain (Exchange Chain) is used for building and trading digital smart assets.
- P-Chain (Platform Chain) is designed for coordinating validators and enabling the creation of new subnets.
One last point to mention is that AVAX is the 16th biggest crypto coin, with a circulating supply of almost 296 million coins and a market cap of $4.9 billion of the total value.
Solana Mini Review
Solana (SOL) is a leading decentralized blockchain built to enable and upgrade the scalability of intuitive apps. Today, the Solana ecosystem is considered one of the rapidly growing networks worldwide, with thousands of projects spanning non-fungible tokens, Web 3.0, DeFi, and beyond.
Solana, like Avalanche, is known for its fast and low-cost solutions: its scalability enables all transactions to stay below $0,01.
The native token of Solana is SOL which is in 9th place with its market cap of $11.71 billion.
Solana’s main weakness can be its security system and incompatibility with Ethereum Virtual Machine (EVM), which makes bridging money difficult. Solana network isn’t completely flawless, either.
Avalanche and Solana Comparison: Features Breakdown
Developers prefer to build their projects on a network with good potential that will be around well into the future. So, in order to answer the question of which of the two platforms, Avalanche and Solana, is better, we must first understand the critical differences between them. So, let’s go deep down and compare their main characteristics.
Avalanche vs. Solana: Consensus Mechanism
The Avalanche network solely works on a specially designed PoS consensus mechanism. Meanwhile, the ecosystem of Solana uses a mix of the Proof of History protocol and the Proof of Stake protocol.
The PoS protocol is designed to reduce the risk of nodes wasting resources on unverified activities. On the other hand, the PoH protocol guarantees the accuracy of the transaction history. This mix improves network security and stability.
Solana vs Avalanche: Smart Contracts Design
There is a significant difference between the smart contract designs of Solana and Avalanche networks. One is a decentralized network, while another is a non-decentralized blockchain. So, the ways they function and process all the transactions and activities are quite different.
AVAX vs SOL: Staking Rewards
AVAX crypto holders and investors have to participate in the staking reward program for Avalanche for a specific period. Staking reward duration for AVAX can vary from two weeks and a year, depending on the circulating supply amount. If the particular period is longer than the mentioned time, investors will earn more rewards compared to if they staked for a shorter period.
If we compare Avalanche and Solana in this aspect, the former’s staking rewards are relatively higher. For instance, when staked for a year, SOL tokens will earn a 6% annual yield. The return rate will increase after tokens earn compound interest.
Avalanche vs. Solana: Transaction Speed
When it comes to transaction speed, SOL has a faster throughput than AVAX because it has less number of nodes necessary to validate the transactions on the blockchain.
This shows that the Solana team prioritizes performance rather than decentralization. And actually, this is in line with the SOL protocol’s goal to build out a GameFi and DeFi ecosystem, which requires higher throughput.
As you can see, these two blockchains go hand in hand with each other and based solely on their technical and theoretical aspects, confidently announcing the best one is impossible. Both Avalanche and Solana have pros and cons at the end of the day, making it difficult to determine which one is the greater adoption.
So, if you have difficulty picking the right option for a successful investment, ask yourself what your main goals are and what you need the most. After you decide what is crucial to you among security risks, price, or transparency, the choice will already be apparent.
If we consider the aspect of safety, then Avalanche indeed is better. However, in terms of transaction speed and price, Solana wins over AVAX. So, the final pick depends mainly on the goals and requirements of investors.
It’s impossible to state whether Solana or AVAX will surpass Ethereum clearly. It primarily depends on many factors, including their future development process. One exact thing is that both Solana and Avalanche are in the top places and have all the potential to become absolute favorites of developers and users.
Regarding safety, AVAX surpasses Solana, mainly because Solana focuses more on performance than decentralization.