EN Down
Hi, user_no_name
Live Chat

Solana and Ethereum coins gleaming in the dark casting reflections on the surface


Cryptocurrency investors constantly evaluate new blockchain projects on four core pillars - scalability, security, decentralization, and speed. 

When it comes to faster transaction speeds, Solana dominates conversations with its ability to process 50,000 transactions per second. But how does it compare to Ethereum?

This article benchmarks Solana and Ethereum’s transaction processing capabilities. You’ll learn how Solana achieves security and decentralization at scale and whether its long-term plans make it a viable alternative to Ethereum.


Solana’s Lightning Speed

Solana brands itself the “fastest blockchain in the world”—and with good reason. In January 2022, Solana processed over 24 million daily transactions across its network, compared to Ethereum’s 1.5 million daily transactions.

So, what enables Solana’s industry-leading transaction speeds?

It starts with the blockchain’s unique Proof of History (PoH) consensus and the incredibly lightweight Proof of Stake (PoS) finality. It allows Solana to process over 50,000 transactions per second (TPS) with 400ms block times.

Ethereum relies solely on PoS, confirming blocks every 13 seconds. Its maximum theoretical speed is between 15 and 45 TPS. Even with layer two scaling solutions, it cannot compete with Solana’s raw speed.

Yet, achieving such fast transaction processing is no simple task, as it introduces new challenges around scalability and security.


Start Trading Now


Decentralization and Security

Critics often question whether Solana’s remarkably fast transaction speeds come at the cost of decentralization and security - two pillars critical to any blockchain’s success.

Decentralization refers to having a broad, permissionless network of validators rather than a centralized group controlling the network. This prevents censorship and increases trust. Also, decentralization spreads infrastructure dependencies and attack vectors rather than concentrating them.

In terms of decentralization, Solana runs between 1,000 and 1,500 validation nodes globally. Compare this to Ethereum, which will eventually double Solana’s active validators. 

Critics argue Solana could do more to increase the number of participating validators and further decentralize the broader base layer.


A man seated at an office table with his laptop surrounded by a diagram of chains and encrypted blocks


For security, achieving 50,000 transactions per second theoretically makes it impossible for Solana validators to cryptographically verify the validity of each transaction in real-time. 

With Solana processing exponentially more transactions than Ethereum, validators have more data to store long-term.

However, Solana keeps risks low through innovative solutions that allow network-wide transaction acceptance by confirming historical sequences rather than requiring a validator consensus on every transaction. 

Technologies like Tower BFT help validators efficiently transmit data despite higher throughputs.

While debates persist around decentralization and security, Solana maintains reasonable tradeoffs to achieve scale. 

Through ongoing upgrades, the developers continue balancing these critical blockchain pillars—just as with any new disruptive technology.

You might find this article thought-provoking: Ethereum 2.0 and the Future of Scalability


Scaling for Widespread Adoption

Looking long-term, can Solana scale sufficiently for global adoption the way Ethereum hopes to?

Much comes down to Solana’s unique hybrid blockchain architecture. It combines a single-layer blockchain validated by the root protocol (like Bitcoin) with an automatically scaling, distributed state architecture similar to Ethereum.

Solana tracks blockchain data and histories on the base layer while running smart contracts and processes on a separate state layer. So, as demand increases, the state layer can scale dynamically across GPU cores rather than relying solely on sharding or layer two solutions.

Solana’s PoH consensus also natively optimizes for GPU cores rather than the memory-intensive PoW, making it far more scalable on standard hardware.

With these solutions, Solana believes it can eventually process over 700,000 TPS with sub-second finality. Compare that to Ethereum, which hopes to reach 100,000 TPS after its sharding implementation.

For these reasons, Solana offers a distinctly faster and more scalable blockchain architecture than Ethereum. It maintains this speed without sacrificing decentralization or security. 

While critics argue otherwise, Solana makes reasonable design tradeoffs true for any blockchain. Solana’s transaction speeds ultimately leave the door open as a long-term Ethereum competitor.

You might appreciate this related piece: Trader-Centric DApps On Avalanche Blockchain


Why Speed Matters to Traders


A close up of fingertips effortlessly typing on a laptop keyboard


For active cryptocurrency traders, the speed and cost of executions are vital. Slow transaction speeds or volatile fees can make or break profitability - especially for high-frequency trading strategies.

This is where Solana shines compared to Ethereum. With the ability to consistently process transactions in 400ms or less, Solana enables rapid order execution. And with fees averaging a fraction of a penny, costs stay low regardless of market conditions.

Conversely, Ethereum’s 15 TPS speed ceiling and unpredictable gas fees frequently create congestion, making high-frequency trading difficult. 

Transactions during network congestion can take many minutes or even hours, with fees spiking exponentially. This makes traders unable to exit positions at intended prices.

Besides, decentralized exchanges built on Solana, like Serum DX, match centralised exchanges in speed and liquidity. Decentralized Ethereum exchanges with slower block times need help to offer the immediacy professional traders demand.

For these reasons, Solana facilitates much more reliable and responsive trading than Ethereum, a critical advantage for cryptocurrency traders executing real-time order strategies or needing to exit positions instantly. 

The difference in raw speed opens up more and better trading opportunities.

Expand your knowledge with this write-up: Comparing Ethereum with Other Blockchain Platforms


The Verdict? Solana is Much Faster

Faster transaction processing is a critical requirement for any global blockchain, and Solana is the clear leader compared to Ethereum. 

Innovating solutions like Proof of History, Solana achieves industry-leading speeds secured by cryptographic verification rather than validator consensus alone.

Due to a scalable hybrid architecture, Solana is built for further optimization across GPU hardware as adoption spreads - without sharding or layer two complications. Its theoretical processing potential dwarfs Ethereum’s goals.

For these reasons, Solana offers transformative transaction speeds that are impossible on Ethereum anytime soon. 

As blockchain applications demand faster performance to spread worldwide, Solana’s real-time speeds give it a clear competitive edge in the long run.

Become a member of and leverage our advanced trading tools and resources! 

“When considering “CFDs” for trading and price predictions, remember that trading CFDs involves a significant risk and could result in capital loss. Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be considered investment advice.” 

Related Education Articles

How to trade on the commodity of crude oil

Tuesday, 16 April 2024


How Do You Trade in Crude Oil?

Gold Standard

Monday, 15 April 2024


The Gold Standard: A Historical and Its Modern Implications

How To Apply Proper Research On Stocks

Monday, 15 April 2024


How to apply proper research on Stocks

How to open a free demo account

Wednesday, 10 April 2024


How to open a free demo account

Live Chat