Home
News
Intro: Solana is all set to challenge Ethereum Blockchain. It is formally also known as the Ethereum Killer by some. The platform is developed on Proof-of-stake, which means less fees and is likely to become a go-to-home for DApps.
Solana is all set to challenge the ethereum blockchain. This all is a reality as Solana’s blockchain ambitions are growing as the project’s scope is expanding. The upstart blockchain’s other name is Ethereum Killer by some. Recently the blockchain has raised a huge amount of money to scale up its ambitions. This means that the platform is all set to become a go-to-home for decentralized applications, or DApps.
According to the sources, Solana has raised between $300 million to $400 million. The figure is not certain but the speculation rife that the funding to the platform is done in a huge amount. In March, the company will be closing the smaller amount. It will further be expanding fundraising in response to high demand.
Sam Bankman-Fried, crypto entrepreneur and owner of FTX said that he is very excited about the news and is impressed to see the growth of Solana’s business. FTX had recently launched a decentralized version of its exchange on Solana in 2020.
Although Solana did not comment on the fundraising news, the executive of the company in an interview to one of the media publication, did not deny the information.
Solana’s expansion worry for other blockchains
Other blockchains along with ethereum now have to be worried about the expanding scope of Solana. The term ethereum killer coined for Solana could be applied to other blockchains as well. For third-party projects, Ethereum is the most popular blockchain. Solana has also tasted the blood with it.
Despite this, Solana has challenged the ethereum blockchain in the evolving world of DApps, which moves around finance, but is also moving around gaming and media now. As per the boosters of Solana, it is comparatively faster and less expensive than ethereum. The maximum throughput is more than 50,000 transactions per second. Whereas, ethereum throughput is between 10 and 15 transactions per second.
Solana is designed on the Proof-of-stake blockchain where the cost is in pennies. It is a very big positive point in contrast to Etherum whose fees are surging and have obliged users to pay thousands of dollars to process transactions. However, the fees of ethereum are expected to decline as the blockchain transitions to a proof-of-stake model.
Solana formidable for NFTs
Solana was formed in 2017. The platform has been active in building tools and networks for others to build on the platform. The platform has developed a new protocol called Metaplex, which was launched in June first week. This is pitched as Shopify for NFTs, which will allow creators like Grammy winning musician RAC to form their own stores to sell the unique digital items.
Its native token SOL also saw a surge in prices this year and jumped to as high as $54 in May from $2 in early January. The SOL token has jumped 17-fold this year, for a market capitalization of over $8million.
Solana had raised $21.8 million before the fundraising round. $20 million was given by Multicoin Capital backed by BlackTower Capital including others in 2019. The founder of the Solana is Anantoly Yakovenko.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
