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Introduction
This section is a part of Solana Guide. In this section we are going to compare two blockchains - Solana (SOL) and Ethereum (ETH). This guide is meant to show you unbiased feature set comparison of blockchains in discussion.
Below table shows you the comparison points between the two blockchains.
| Solana (SOL) | Ethereum (ETH) |
| Solana Project was started in 2017 by Team led by Anatoly Yakovenko and in 2020 the token was released. | Ethereum (ETH) project was started in 30th July 2015 while the whitepaper for ETH was released in 2013. |
| Solana has 489 million SOL tokens in Market while 260 million are already into the distribution. Meanwhile 10.46% of tokens are under the control of the Solana Foundation. | Ethereum (ETH) marketcap has $365,186,415,050 of coins. Currently 117,046,619 coins are in market circulation. |
| Solana project makes use of the Proof of History consensus mechanism. This consensus is designed for the scalability and usability of the blockchain. | Ethereum was deployed with the Proof of Work mining consensus. Since 2021 they have started rolling out consensus mechanism similar to the Proof of Stake. |
| Solana supports smart contracts with faster confirmation times. It supports dApps, NFT and the smart contracts on it's ecosystem. | Ethereum supports the smart contract through it's Virtual machine and supports dApps, NFT and the multi-layer implementation on it's ecosystem. |
| Solana supports Rust as it's solana specific chain language. And alternatively supports C as another language. | Ethereum makes use of the Solidity as a primary Language and is deployed on VM. |
| Solana is scalable upto the 50,000 Transactions per second. It has 400ms block time. | Ethereum's TPS rate has been pretty variable (currently between 15 to 30 TPS) and is expected to change after the ETH 2.0 upgrade is complete. |
| Solana enforces it's token standards and allows extensions through solana program library. | Ethereum has multiple token standards - ERC-20, ERC-721 and ERC-1155 and expected to have more as 2.0 upgrade is finished. |
| Solana currently offers 7% APY for the staking rewards. You can stake through popular exchanges and the wallets. | Ethereum 5% per year. You can stake ETH through officially supported marketplaces. |
| Solana is potentially useful for projects where faster transactions and the scalability is important. It is expected to be used in marketplaces, exchanges, financial smart contracts and dApps. | Ethereum's ability to support multi layer infrastructure has been used in various tokens, NFTs, dApps and smart contracts. |
Conclusion
Solana's faster transaction time per second and the block time is ideal for the financial smart contracts and the dApps. It happens to solve different use cases than the Ethereum.
Meanwhile Ethereum continues to dominate the market with it's dApps, smart contracts & NFT project implementations for various use cases.