Learn about the many aspects of Solana and Algorand to assist you in determining which one offers a better potential and greater opportunities for adoption.
Anatoly Yakovenko, a computer engineer, created the Solana white paper in 2017, which marked the beginning of the project. Yakovenko recognized the difficulties of clockless blockchain systems like Bitcoin and Ethereum to execute a high volume of transactions fast.
While these blockchains couldn’t expand beyond 15 transactions per second, a centralized financial network like Visa can process roughly 24,000 transactions per second. Yakovenko thought that by including an “internal clock” in the blockchain technology, this issue might be resolved. As a result, he established Solana Labs in 2018 to develop Solana.
Until July 2019, the team raised $20 million in funding. But the public launch of the main network didn’t happen until March 2020.
While the Solana Foundation, a non-profit organization located in Switzerland, is in charge of development and community growth, Solana Labs is still the largest contributor to the Solana blockchain.
Silvio Micali, a professor at MIT and recipient of the Turing Award, launched Algorand in 2017. The same blockchain trilemma that the Solana network is concerned about—decentralization, scalability, and security—is also addressed by Algorand.
It employs a new strategy for solving this issue, namely a pure proof of stake consensus method, which is a variation of the regular proof of stake model put forward by Micali. The fact that this system is not dependent on miners allowed Algorand to become the first carbon-negative blockchain in the world.
The public test network was released by Algorand Inc. in April 2019, and the Mainnet followed two months later in June 2019. Algorand Foundation, a Singapore-based non-profit organization, is in charge of overseeing its progress.
Solana Vs. Algorand: Which Is Better?
In terms of network efficiency, Solana is able to complete more transactions than Algorand in a single second—which is over 60,000. Despite plans for Algorand to speed up block completion, Solana still dominates this competition.
Again, Solana wins the award for staking. Staking on the Solana network is highly advantageous for users due to the simplicity of the process and the five-day lock-up for an additional 2 percent annually.
Although Solana is well behind Algorand in terms of institutional adoption, it is not certain that this adoption will have a favorable effect on the price of ALGO. ALGO may see rapid price increases if the adoption increases demand for the currency.
In closing, Solana triumphs, demonstrating that it is a superior choice for users of the two. But, if Algorand keeps all of its claims and resolves its issues, the situation might quickly change in the future.