A developer, “0xIchigo”, behind Helius, a software company that develops infrastructure for users to build on Solana, think Solana is winning the energy efficiency race. However, competing platforms, especially ethereum, are here to stay.
ethereum is here to stay, Solana is winning the energy efficiency race
ethereum and Solana aim to serve the same user base, but the former was the first to launch, while the latter is a fourth-generation blockchain. It seeks to solve the challenges faced by the original smart contract platform. For this reason, Solana has higher performance and performance, although there have been cases where its reliability has been questioned.
Regarding energy efficiency, the developer noted that for every confirmed transaction in bitcoin, the world’s most valuable network that uses the proof-of-work consensus algorithm, 5 billion joules of energy are spent. In a similar transaction on ethereum, 144,000 joules of energy will be spent. Meanwhile, Solana will consume 658 joules of energy, less than what is included in a “Google search.”
The high energy spent on bitcoin is mainly due to the ledger consensus algorithm, which requires miners to spend electricity while they operate, competing to solve cryptographic problems. Successful miners add the valid block of transactions to the chain in exchange for a reward of 6.25 btc and transaction fees accumulated on the block.
The proof-of-work consensus algorithm typically consumes more power than the alternative systems used by Solana and ethereum. ethereum moved to a proof-of-stake system in September 2022.
It depends on validators who do not have to use expensive equipment but do have to stake at least 32 eth. As of October 18, there were more than 978,000 validators. Meanwhile, on 1,970 validators secured and validated transactions on Solana.
ethereum is “too big to ignore”
While energy efficiency is one of the key metrics being considered, especially for protocols being launched on smart contract platforms, activity is critical. So far, ethereum is one of the most active smart contract platforms, taking into account, for example, the total value locked (TVL) by decentralized finance (DeFi) protocols. ethereum manages over $20 billion in DeFi assets, while Solana roads around 324 million dollars.
This could be why 0xIchigo, while pointing out Solana’s advantage, insists that ethereum and its virtual machine (EVM) are “too big to ignore.” Still, in the developer’s opinion assessment, this advantage makes the EVM rigid and difficult to scale over time. Fluctuating transaction fees greatly impact the virtual machine, making it a less desirable option for payment companies.
Related Reading: bitcoin on the Verge: Possible 50% Drop Before Halving, Analyst Warns
Featured image from Canva, TradingView chart
