Solana: A Crypto to Challenge Libra and Ripple?

Fibo Quantum

Solana is a blockchain which, according to their website, is a “lightning-fast distributed ledger technology for mission-critical decentralized apps”.

It is slated to be released later this year, and earlier this week, amassed $20 million, led by crypto investors Multicoin Capital. Investors received SOL tokens rather than stakes in Solana Inc. The funding will provide Solana much-needed resources to fund its technological development up to its mainnet launch later this year, especially if it wishes to deliver on all of its promises.

Solana is an outlier in the field because it claims to support 50,000 transactions per second (TPS) on a global network of 200 nodes. Ripple, which is one of the fastest blockchains, claims to process 1500 TPS, while Bitcoin can only handle about 7 TPS. For comparison to non-crypto-based payment processers, Visa can process about 65,000 TPS, making Solana a close competitor.

Solana wishes to create a highly scalable blockchain platform that addresses the many traditional issues faced by decentralised ledger technologies (DLT) by creating a decentralised, yet scalable platform. This platform is the world’s “only distributed ledger solution capable of hosting applications with the computational bandwidth comparable to the modern internet”, according to Solana’s Twitter. It can power decentralised versions of social media such as Twitter and Facebook, and all other blockchains – “with room to spare.”

What about Libra?

But this is not the only way Solana aims to provide Facebook competition. Earlier today, it announced the successful integration of Libra’s ‘Move’ – a smart contract programming language developed by Facebook,  allowing third party Move modules to be deployed to Solana’s beta testnet.

Libra has garnered significant global attention since its been announced last month and has faced serious regulatory backlash, drawing unease from the investment market. Solana wishes to capitalise on the rocky grounds on which Libra stands, by drawing Libra developers who can deploy their applications on Solano’s superfast, permissionless and decentralised environment. In contrast, Libra has a permissioned setting and is unlikely to launch soon given the regulatory hurdles it must overcome.