The Solana network was praised through a recent note by Bank of America. According to analyst Bofa Alkesh Shah, the cryptoasset can be considered the Visa network of the crypto market.
The note was published on January 11, 2022 and talks about the differentiators of the Solana network, which has no scalability issues, which allows it to offer low-cost fees for transactions and faster data processing.
Officially launched in 2020 in the crypto market, the Solana network has faced consistent growth, establishing itself as an alternative to the Ethereum network.
With more than 50 billion transactions recorded in 2021, the Solana network processed nearly ⅓ of the total transactions in the Visa network, which closed the year to September with 164.7 billion transactions.
In addition, more than 5.7 million non-fungible tokens (NFTs) were minted through the Solana network in 2021. For Bank of America, Solana presents solutions for everyday cryptoasset use, and is ideal for micropayments and adoption in blockchain gaming.
Although the Solana network has faced problems recently, the Bank of America report states that the platform “prioritizes scalability” rather than betting on network decentralization.
“Solana prioritizes scalability, but a relatively less decentralized and secure blockchain has trade-offs, which can be illustrated by several network performance issues early on”.
The US Bank study further compared the Solana network to the Ethereum network, which has higher fees due to the ecosystem’s decentralization.
“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 higher than the value of the transaction being sent”.