Smart contracts are one of the hottest areas in all of crypto.
Who will emerge as the undisputed King of the Smart Contract platforms? You all know the main players: Ethereum, Cardano, Polkadot, and Binance Smart Chain.
There are a few new kids on the block that could not only rival, but possibly even unseat the big boys in the years ahead.
Battling it out today are two high-performance layer 1 blockchains with tremendous potential.
Today we are putting Solana up against Elrond, two of the best blockchains that are creeping
their way to the top. Find out why we love both of these top alt-coins and their unique blockchain
Battling out today are too high-performance layer-1 blockchains with tremendous potential.
It promises to be an intriguing matchup.
The Teams Today, we have to channel favourites for you, in an epic match, right out a Silicone Valley by way of Ukraine, today having the value a tad under $100, the so-called Ethereum killer Solana and its native token SOL.
On the other side of the field, straight out of Romania by way of Rivendell and today valued a bit
under $170, right out of the city of Sibiu, the great and powerful Elrond with its native token EGLD.
Solana launched its mainnet in March of 2020, but the concept behind it burst onto the scene in 2017, when the explosive white paper was published by its founder Anatoly Yakovenko.
Yakovenko’s genius was figuring out a way to encode passages of time as data.
This led to his creation of a unique and permission-less system for determining the time of transaction known as Proof of History (PoH).
Why is proof of History such a game-changer? When used alongside Proof of Stake (PoS), Solana’s decentralised clock function creates a unique process.
A series of hash transactions in the form of a verifiable order of events.
This means the blockchain can work at incredible speed without sacrificing security or decentralisation.
Say Solana was fast, efficient, or economical in its functions would be the understatement of the year.
Think of the Anderson Silva blockchain technology, the result of the formidable blockchain with mind-bending scalability and throughput. Let’s dive into some numbers:
With a processing capacity between 50,000 and 65,000 transactions per second and a theoretical limit of over 700,000 per second.
Solana is lightyears ahead of Bitcoin and Ethereum in transactions per second, it’s not even close.
I can confirm that Anatoly Yakovenko is no slouch in the brains department either.
In fact, we all owe a great deal to Yakovenko during his 12 years at Qualcomm he pioneered a lot of cell phone technology we are taking for granted today.
With Solana, he’s practically invented the Muay Thai of blockchain technology. The team behind Solana pioneered 8-core innovations, powerful tools that combine to give the timekeeping king of crypto.
The elegant functionality of a Swiss watch. I mean, is it a coincidence that the Solana Foundation is based in Geneva.
We’ve already touched on proof of history, but one of the other of the 8 weapons and Solana’s arsenal is Sealevel. The world’s first parallel smart contracts runtime.
Do you know of any fighter that can throw an uppercut while landing a spinning back kick?
Solana has a runtime built to process tens of thousands of contracts and parallel.
In fact, runs so well and the entire class of applications only theoretically possible before are now a reality.
Oracles running on Solana can provide price feed updates every 400 milliseconds would cause only 10 bucks per 1 million transactions, you can see why dApp developers everywhere are so
keen to jump on board.
In October 2020, SBF chose Solana for the Serum DEX precisely because it was the fastest smart contract crypto on the market. But that’s just the tip of the iceberg.
Solana’s ecosystem is growing larger by the day, in fact, it’s booming.
And that is the reason why this blockchain is garnering so much hype and great expectations.
So, it is indeed a worthy contender and definitely, we will keep an eye on this project extremely closely.
Solana Ecosystem With all these developments, partnerships, and price action, you might be wondering when Solana will finally reach its final form and take SOL to the moon.
The short answer is that this isn’t entirely clear, because Solana does not have a clearly defined roadmap at the time of the shooting.
In a related Reddit post, a member of the Solana team noted that beta is quoted as just a word that could be removed at any time or even stay there for a while.
In reference to Solana’s mainnet beta.
The closest thing I was able to find to a roadmap was Solana’s governance forum, which is barren besides the earlier updates related to the inflation vote.
And speaking of governance, the most recent discussion thread on Solana’s governance forum asked about on-chain governance, which I believe is the final phase in Solana’s development.
One of the answers directs to an unfortunately unrelated repository on Solana’s GitHub, which is likewise seen a noticeable decline in commits since last year.
Solana had its coming of age in 2021 and now it is firmly on the path to having a tryst with destiny (and the possibility of breaking new ground in 2022). Solana (SOL) is widely being recognised as one of the Ethereum-killer cryptos owing to its ability to overcome a lot of the latter’s deficiencies, including scalability and speed.You can find the link in our video description about SOL’s bright future and why it could emerge as an Ethereum-rival:
Apart from speed and scalability, SOL is making a name for itself in a variety of other areas, including non-fungible tokens (NFT) and decentralised apps . While SOL does not (yet) host the same magnitude of projects as Ethereum. However like its NFTs, quite a few SOL projects out there are quite innovative and have a real-world utility which is why they have the potential to touch an all-time-highs in 2022:
We am not referring to the line of skin care products. Serum is a noncustodial, decentralised exchange (DEX) created by FTX that is known for its faster transaction speed and cheap costs.
The goal of the DEX is to help deal with the issues of DeFi, including high gas fees, slower transactions and centralisations.
Serum is currently the first decentralised cryptocurrency exchange with an on-chain central limit order book (CLOB) and matching engine.
Serum also enables stable coins and cross-chain asset swaps. Serum aspires to be a fully transparent and trust-less exchange, with users managing governance through the SRM token (which gives the holders voting rights).
Mango Markets is a Serum-based DeFi derivatives marketplace that operates on the Solana blockchain. Mango’s purpose is to combine the convenience and liquidity seen on centralised
exchanges with the permission-less characteristic of DeFi.
Traders can earn income on their open positions, deposits, and collaterals when they use Mango.
Serum’s entirely on-chain everlasting features, such as order book and spot margin, benefit Mango.
Every asset on Mango is cross-collateralised and can be used as collateral to open leverage positions.
MNGO, Mango’s native token, is a governance token that allows holders to vote on changes to the governance structure.
MNGO can be acquired on the FTX exchange or on Gate.io as of January 2022.
Star Atlas is widely being projected as a competitor to Axies Infinity in the play-to-earn NFT game space.
The Solana ecosystem has been used to create Star Atlas, a blockchain multiplayer exploration game. The game’s goal is to create a metaverse with an open economy where players may enjoy complete freedom while earning ATLAS tokens. According to the game’s description, it offers “a world of possibilities” (its set in 2020) The game has a dual economy (similar to Axies Infinity), with ATLAS serving as the in-game currency and POLIS serving as the Star Atlas DAO structure’s governance.
Players are awarded with ATLAS and NFTs as they progress through the game.
Raydium is a Solana Blockchain-based Automated Market Maker (AMM) that works similarly to Uniswap.
Raydium aims to address the drawbacks of previous AMM DEX and DeFi systems, such as the inability to access liquidity outside of their pools and expensive gas fees (for those on the Ethereum network).
By putting Serum on the Solana blockchain, Raydium eliminates all of these obstacles.
The first AMM improves Solana blockchain speed and a DEX limit order book, allowing for unlimited liquidity supply, frictionless yield farming, and speed token swap.
As a result of Raydium’s Serum integration, the entire Solana ecosystem now has access to a large amount of liquidity.
In addition to these projects, the Solana NFT space is becoming more and more popular with even Mrs Trump launched her NFT collection on Solana via her website
The two main SOL NFT marketplaces include Solanart - solanart.io and Solseasolsea.io. The best know SOL NFT project remains the Degenerate Ape Academy. The collection is similar to Bored Apes and Crypto Punks, but the 10,000 unique images of cartoon apes have a slight 3D feel.
The entire collection was sold out in less than eight minutes, catapulting Solana to new heights.
The mint price was only 6 SOL, but by the time it reached the floor, it had more than doubled in value.
On the whole the Solana ecosystem is exploding with some endeavors performing better than others.
I would keep my eyes wide open on this blockchain technology.
Next: on the other side of the field is Elrond. It is named after a fictional elf character from the famous movie Lord Of The Rings, but don’t let that mislead your judgment, because Elrond has powerful features in the sleeves.
This blockchain might just be as powerful as Gandalf himself. Back to business, how does that run straight up to the fearsome Solana? Pretty well, as it happens known as the internet-scale blockchain Elrond’s founders make no bones about Elrond’s ambitions on the world stage.
Elrond’s speed, scalability and security are beyond impressive. It is a fighter who needs great striking grappling and takedown a fence to compete at the highest level.
Elrond blows the blockchain trilemma right out of the water.
First identified by the super intelligence known as Vitalik Buterin, the challenger blockchains are combining true decentralisation, scalability, and security.
These are simple enough on a case-by-case basis but your blockchains have been able to meet the demands of each without somehow sacrificing the other.
Let’s start with scalability and Elrond’s phenomenon stats. One feature worth mentioning is that when it comes to its native token EGLD.
Elrond will never upscale beyond its maximum total supply of around 31 million.
With the first 20 million already minted the remainder will be distributed as rewards to the validators across the network.
This gives it a scarcity akin to Bitcoin, which has obvious upside for its strong and committed community.
As for scalability on the network, it’s a very different story. This in part is thanks to its foundational Innovation that is adaptive state sharding.
Elrond’s team of developers took some of the lessons from other blockchains sharding like Ethereum 2.0 and Zilliqa (ZIL) combining them into a blockchain that can meet the demands of DeFi, NFTs, and of course regular peer-to-peer transactions.
And briefly, sharding means splitting the blockchain into smaller pieces known as shards.
Increasing speed by dividing the transaction between different clusters of validator nodes.
And while this concept isn’t unique to Elrond, they’ve raised the bar by implementing three different types of sharding.
These parallel processes Elrond can handle a huge number of transactions that scale.
The tune of a mighty 15,000 per second. According to runs on the test-net, that’s even said to move up to the hundreds of thousands.
The secret sauce to this adaptive state sharding is unsecured proof of stake consensus method, which uses random sampling of consensus groups to ensure optimal network security while guaranteeing the validity of each transaction.
Elrond might not have infinite resources back to them, but they have an incredible team behind them. Some of the best tech and are combining it to create a super functional platform and seamless user experience. From a developer’s point of view, Elrond is an enticing prospect.
A platform with the real utility to build on support for web assembly where you can write smart contracts and a host of programming languages more than Solana’s C and C++, Rust, and Libra Move.
This broad appeal is reflected by Elrond’s thriving ecosystem to list them all would take me well past my bedtime. But as they say, a picture speaks a thousand words.
A great example of Elrond’s footwork is in the Maiar Wallet. A main-net interface where its hundreds of thousands of users, its product pack some serious powerful features. Or, it’s not simply limited to EGLD, but also lets you send and receive BNB, Ethereum, Bitcoin, Mex, WUSC, Ride and of course E-gold. It may well prove to be the key to unlocking the billion-plus users they aim to have on the blockchain by the end of the decade.
Now are these two smart contracts blockchains throw their hats into the octagon. You probably can’t hear the legions of Elrond fans cheering on their favourite team.
That’s because they’re quite the nerdy types. Because according to Picolo Research, Elrond has the second strongest community in all crypto.
Second only to Cardano (ADA) This is in part thanks to their pioneering tech but also the team’s engagement with the community at large who do their part by staking well, over 50% of circling supply.
Acting his both validators and delegators on the blockchain. Earning some pretty decent APY in the process. If you dare mess with Elrond, don’t be surprised to find yourself answering to an army of devoted elves.
Elrond is a serious project and not just because its name comes from The Lord of the Rings. It has managed to combine the best features of many leading cryptocurrencies in the space, and even improve them, like:
Elrond’s adaptive stake sharding is like the sharding we will see in Ethereum 2.0 but better.
Elrond’s secured Proof of Stake is like harmonies' effective Proof of Stake (PoS), but better.
Elrond’s Arwen Virtual Machine is like Cosmos Cos WASM Virtual Machine, but better.
When you combine these three features you get a blockchain that is theoretically capable of handling more transactions per second than every other smart contract blockchain combined.
Elrond’s growth has been exponential since its main net launched last summer.
From where I’m standing this growth has been well deserved and there is much more on the horizon. Besides the expansion of staking participation and rewards with phases three and four,
the Elrond DeFi ecosystem will likely drive some serious demand for EGLD.
It would not surprise me if this buzz would push Coinbase to list EGLD later this year and the new and improved tokenomics of eGold should accelerate any moves to the upside. This is assuming that none of those eGold whales start to sell and unfortunately, I think some selling is almost guaranteed.
EGLD distribution is Elrond’s Achilles heel because it reveals much more than actual price resistance.
Elrond’s openly staked mission is to become the bedrock for the next generation of global finance.
The EGLD token has been repeatedly touted by the team as being the most optimal cryptocurrency on the market due to its economic attributes. And to be honest, I definitely think it is up there.
To be clear, Elrond has tremendous potential and we will be watching this project closely.
What are the conclusions?
Five championship rounds may take five years, and given the potential about Solana and Elrond, there’s a good chance they’ll both end up operating as part of a multi-coin, multi- protocol world.
There really is only one way to find out and that’s to stick around for the long term.
Sometimes it’s good to remind ourselves just how early we all are, who knows what the future holds.
But whatever the outcome, we’re in for an exciting ride.