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Solana vs Binance Coin: Which is better?

Since the rise of Decentralized Financing (DeFi) in 2020, various layer 1 blockchains have emerged in the crypto space. Each one promises increased transaction speed along with improved security to cater for DeFi. Notable projects include the likes of AltCoinTrader listed Solana (SOL) and Binance Smart Chain. Today we compare the two power houses to see which one could potentially withstand the test of time.

What is Solana?

Solana’s claim to fame is its speed and how this facilitates crypto apps like NFTs and DEXs on the platform. The network can process about 65 000 transactions per second. Other networks like Ethereum can only process 15 transactions per second or less.

The project was founded in 2017 and makes use of a consensus mechanism called Proof of History to enable fast transactions and low fees.

What is Binance Smart Chain?

The Binance network was created by Chagpeng Zhao aka CZ in July 2017. Its native cryptocurrency is Binance Coin (BNB) that is used to pay listing fees, exchange fees and trading fees. The coin is a favourite amongst the crypto community due to its low transaction fees and fast transaction speed. The Binance Smart Chain integrates the Ethereum Virtual Machine to allow for fast asset trades on the network. The Smart Chain is thus a smart contract-enabled sidechain that features staking and DeFi.

In recent news, CZ announced the rebranding of Binance Coin (BNB) to Build and Build (BNB). The Binance Smart Chain has also been renamed to the BNB Chain. With the rebranding came new features like Web3 infrastructure and virtual reality for metaverse. The new BNB Chain will evolve into a multi-chain that can operate on multiple blockchains.

Solana vs Binance Smart Chain

Both Solana and Binance are two of the strongest cryptocurrencies in the market. Here are some benefits to both projects:

Benefits of Solana
  • Solana’s stateless architecture feature allows the network to process 65 000 transactions per second. However, the network has the capability to process 100 000 transactions per second. A stateless architecture means that former programs do not have to remember the state of the blockchain to process transactions. It utilises less memory and can process transactions much faster.
  • The network has more than 1000 validators.
  • Currently, more than 75% of SOL tokens are staked. This makes the network extremely resilient to attacks.
Benefits of Binance Smart Chain
  • The Consensus Mechanism reduces the number of validators on the network. This way it increases transaction throughput and reduces transaction costs.
  • There can only be 21 validators on the Smart Chain. This is determined by the amount of BNB that is staked. This can be both an advantage and disadvantage since a whale can become a validator and hold onto the position.
  • With cross-chain bridging users can transfer USDT, BUSD and ETH to the Smart Chain and benefit from a smooth inter-blockchain experience.
In conclusion both projects have good prospects long term but according to experts and analysists, Solana is likely to outperform in the short to medium term. This is mainly due to Solana’s popularity in the NFT space. Currently, multi-million-dollar investments are going into NFTs on the Solana network and could see the price of SOL skyrocket in the short term. Regardless if you are a short-term trader or long term hodler, AltCoinTrader caters for every possible scenario.