Solana's network crashed this week, but developers say the DeFi altcoin is still on track to succeed as an alternative to ethereum

 Solana's network crashed this week, but developers say the DeFi altcoin is still on track to succeed as an alternative to ethereum


The network is back up and running now, and Wagner said he wasn't discouraged by the outage, but rather impressed with the network's "expediency of resolution."


"Solana was capable of handling greater than 400,000 transactions per second prior to the failure, which is being rapidly resolved, " Wagner said. "This demonstrates the true potential of a web scalable blockchain, and furthers my resolve in building Star Atlas with solana as the foundational protocol."


In the wake of the outage, investors may be wondering where solana will fit into the ecosystem of layer-one blockchains, especially as ethereum stands as the dominant platform for decentralized applications.


Seth Ginns, managing partner at investment firm CoinFund, sees a "multi-blockchain world," where developers examine the trade-offs of each protocol and choose to build their project on whichever blockchain best provides what they need.


Traditional financial applications that need fast transaction speeds are well suited for Solana, Ginns told Insider. Meanwhile, applications that need strong censorship resistance or a more decentralized protocol may be better suited on ethereum, he said.


Ethereum will soon undergo a massive upgrade known as "Ethereum 2.0," which will culminate in the blockchain pivoting to a proof-of-stake concept, among other technical updates. That could change how it stacks up against solana, Ginns said, but before that upgrade, developers are flocking to what works for them.


"Both from a utilization perspective and an investor awareness perspective we're seeing solana really come into one of the top positions among base layers," Ginns said. "That's likely to remain the case, even as ethereum goes through upgrades."


However he noted that solana is still a fraction of ethereum's network value, and the token is unlikely to unseat the second largest cryptocurrency any time soon.


"We have a saying, 'you never bet against ethereum,'" Ginns said. "It would be surprising to me if you ever hear me completely writing off ethereum. It just has such a vibrant developer community."

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