The battle in crypto seems to be mainly fought between the so-called smart contract platforms. Which network will be able to crown itself as the smart contract platform in the long term? Now, Ethereum (ETH) is still well ahead, and has been for years. But Solana (SOL) may eventually take over.
The CEO of crypto exchange FTX.com, Sam Bankman-Fried, discussed his expectations about the developments of SOL during an interview with Kitco News.
Solana Can Scale Up as Soon as Blockchain Gets Big
Ethereum suffers from extremely high transaction costs, and that is no secret. The developers behind that project have been working on solving this problem for a long time. For example, the network will soon switch to Ethereum 2.0, a proof-of-stake (PoS) network. However, the question is whether this will be on time. There are a number of other networks that can do what Ethereum can, but a lot faster and cheaper.
One of those networks is Solana. Bankman-Fried is an early investor on the project and FTX and Solana are closely linked. According to the CEO, the most interesting thing about Solana is that it can scale so massively that it can handle hundreds of millions, if not billions of people:
“Yes, I think one of the most compelling parts is that it has the potential to scale once blockchain gets massive. And it has the potential to host DeFi applications for hundreds of millions to billions of people with a massive, buildable ecosystem. Again, that’s not to say it will necessarily happen, but it could happen.”
FTX CEO: Ethereum 2.0 Has Pros and Cons
Bankman-Fried, who is trying to grow FTX.com into one of the world’s largest exchanges, expects the move to Ethereum 2.0 could lower transaction costs. However, sharding could also cause problems. Shards are separate blockchains that exist parallel to each other.
This ensures that more transactions can be processed. But at the same time, assets are not so quick to move between these sidechains. The CEO of FTX therefore thinks that the network may run into problems in that area. Watch Kitco News’ entire interview with FTX CEO Bankman-Friend below.