Many crypto traders looking for potential profit are analyzing the Solana and Elrond projects. It’s not about determining the SOL versus EGLD showdown winner but identifying the currency that will be the best option for your portfolio.
That’s where our guide comes into play. You’ll learn basic details about Solana and Elrond, as well as their main features, which should help you determine which is the better investment.
What Do We Know About Solana?
Solana’s history goes back to 2017, but its official launch was in 2020. It’s a blockchain platform that allows dApp creation and uses a proof of history consensus mechanism. Anatoly Yakovenko, Solana’s founder, is the one who created this mechanism.
SOL is the official Solana token, and it’s among the top ten currencies in the crypto rankings. The current worth of a single SOL is $16, and the token’s market cap is $6 billion. Price predictions are encouraging, claiming the coin could reach $20 by the end of the year and exceed $100 by 2028. You can convert SOL to HNT or other currencies easily via a digital exchange.
The reports show that Solana processes up to 10,000 transactions per second, and that’s because of the specific network’s architecture. The platform uses an efficient and fast consensus mechanism, together with parallel processing and dynamic sharded properties. Thanks to that, the network maintains optimal performance while handling large transaction volumes.
It’s not only about handling many transactions per minute but about completing the transfer as soon as possible. And Solana is capable of finishing a transaction in less than a second. That gives developers an option to design real-time apps, which not many conventional blockchain platforms make possible. And it’s all possible due to the time-stamping mechanism, which makes fast transaction confirmation feasible.
Ecosystem and Projects
Solana has an extensive range of tools that developers can use to create dApps in various industries. The infrastructure is user- and developer-friendly, so it’s no wonder more people are migrating to this platform. If a developer comes across a problem, they can count on comprehensive documentation and community support to resolve the issue.
The estimation is there are hundreds of projects on Solana, including NFT, infrastructure, and other DeFi projects, such as Serum, which is a decentralized exchange project.
What Do We Know About Elrond?
Elrond went through a huge change in November 2022 when it changed its name and rebranded as MultiversX. The developers state it isn’t just a name change but a plan to become a serious player in the metaverse market. They mention that the idea is to be a bridge between worlds, a way to secure interaction between different metaverse worlds.
EGLD is still the native token of MultiversX. Its current value is $33, and with a market cap of around $850 million, that’s enough to be among the top 50 digital currencies. As for price predictions, the token could go up to $50 by the end of 2023 and reach $280 by 2028.
Sharding is a critical element of MultiversX, and it refers to a scaling technique. It divides the network into three shards:
- Network shard: It’s in charge of grouping nodes to ensure faster message delivery and smooth communication between nodes.
- Transaction shard: It manages the mapping of the transactions for shards and ensures that they are processed based on specific criteria.
- State shard: This shard maintains a portion of the state, but not the whole thing, which is the case with the previous two.
MultiversX is incredibly fast when it comes to completing a transaction, as it only needs a portion of a second to finish the process. The network has over 3,000 validators, which, combined with shards, allow it to handle about 5,400 transactions each second. Some claim that the maximum speed is up to 15,000 TPS, but even the first number is quite impressive.
Staking and Rewards
If you have EGLD tokens, you can stake them, which means locking them to contribute to the network’s performance and security. Depending on which platform you select, the rewards can be 5% or more annually. You can’t claim the reward before you have the right to unlock EGLD by the agreement used.
SOL vs. EGLD: Which Is the Better Investment?
MultiversX has taken a huge step by adjusting its future roadmap and focusing on the crypto metaverse. If you believe that’s the way to go, there’s no doubt EGLD is a better investment. On the other hand, Solana keeps providing a safe blockchain platform for dApps, which many find attractive. Ultimately, any trade you perform should be your decision, especially when both options can be tempting, which is the case with SOL and EGLD.