Partnered With:

Solana is the best choice for cryptocurrency to usher in its “ChatGPT moment”

Read this article in 9 Minutes

Decentralization is not an either/or concept, but a spectrum

Original Title: Solana vs Ethereum: Solana is our best bet to get to crypto's chatGPT moment

Original Author: Teng Yan

Original Translation: Kaori, BlockBeats

Editor's note: The comparison between Ethereum and Solana has been a topic of discussion in the crypto world for a long time. The debate over who will be the first to achieve mass adoption and push crypto technology to a larger scale is also a topic of discussion among many. Teng Yan explores the two different blockchain philosophies of Ethereum and Solana, as well as their trade-offs in scalability, security, and decentralization. He also proposes the current model of blockchain development and emphasizes the importance of diversity and adaptability, as well as the role Solana may play in this regard.

This year, I will be writing a series of shorter blog posts, each presenting a key viewpoint. Recently, I have been reading a wide range of materials, and writing helps clarify my understanding of various topics. These articles are like a diary of my reflections.

First of all, I have been thinking about the debate between Ethereum and Solana, which is a hot topic in the cryptocurrency world. I do not intend to delve into the technical differences here - there are many in-depth analysis articles, such as Syncracy Capital's Solana paper, which I highly recommend reading. Instead, I want to provide a more personalized perspective on the future direction of our industry.

I believe that Solana is likely to become one of the most valuable human inventions in the future, on par with Ethereum and Bitcoin.

Our time is running out

Cryptocurrency has been around for over a decade. It has attracted billions of dollars from investors and has become a magnet for some of the smartest minds, possibly rivaling any other industry (except for artificial intelligence).

However, we have not yet found that elusive killer use case - one that causes significant pain for ordinary people. One that makes it impossible for governments to shut down cryptocurrency.

We urgently need a cryptocurrency like "ChatGPT Time". ChatGPT is the fastest growing application to date, reaching 100 million users in just two months.

As time goes by, the pressure is increasing. Although there is some political and social support for cryptocurrency at present, these sentiments will weaken over time if nothing influential emerges. We stand at a crossroads, and the next few years will determine whether cryptocurrency becomes a key, world-changing technology... or remains limited to some niche use cases.

We can't wait any longer. Now is the time.

To find that killer application, the infrastructure layer must be prepared.

Two Philosophical Stories

Ethereum and Solana use two different approaches to solve problems in the blockchain industry. However, their goals are the same.

The idea behind Solana is to first create a useful blockchain, and then gradually achieve decentralization and resistance to censorship over time. It is designed to be high-performance and is the best execution layer.

Low cost, low latency, and high throughput.

Solana optimizes atomic composability, which is considered the most useful feature of blockchain.

The user experience is superior to EVM (for example, no token approval is required).

Solana expands with the expansion of hardware. And Moore's Law has been continuing for decades.

After three years of practical testing and establishing tools and partnerships, we have proven ourselves unlike new, untested high-throughput systems.

Toly succinctly summarized his vision here:

On the other hand, the idea of Ethereum is to first establish a decentralized and censorship-resistant blockchain, and then improve its usability over time.

This foundation enables Ethereum to have a currency premium today. Its future development plans (Surge, Verge, Purge, Splurge) are all centered around improving scalability. This is a journey that will gradually unfold over the next few years, rather than being completed immediately. Today, transaction costs are high and throughput is low.

Nowadays, ETH has a significant currency premium, which proves its valuation of nearly $300B is reasonable and cannot be explained solely by cost/income. This means that a considerable number of people consider it as money. It is used as:

· Account units and exchange methods (many tokens and NFTs are priced and traded in ETH)

· Value storage

· 由于市场需求不足，加密货币价格一直处于下跌趋势

· 目前，ZKS、STARK、SCROLL等加密货币的价格均处于低位

· 一些专家认为，加密货币市场需要更多的监管和规范来稳定市场

· 然而，也有人认为，加密货币的去中心化特性是其最大的优势，不应过度干预市场

All of the above are key attributes of currency.

The widely accepted "trilemma" of blockchain points out that it is extremely difficult to simultaneously achieve the best scalability, security, and decentralization in a single blockchain. This model suggests that focusing on improving any two of these areas often harms the third.

The widely accepted "trilemma" of blockchain states that it is very difficult to simultaneously achieve the best scalability, security, and decentralization in a single blockchain. This model suggests that focusing on improving any two of these areas often harms the third.