Ethereum VS. Solana: SOL or ETH in 2024?! Which One Is The Best?

00:25:55
https://www.youtube.com/watch?v=Y9Ai3gl6Pd0

Ringkasan

TLDRThe video compares Ethereum and Solana, highlighting various aspects such as their founders, technology, tokenomics, and the challenges they each face. Ethereum, founded by Vitalik Buterin and seven other co-founders in 2013, has become a comprehensive ecosystem despite its slower transaction speed of around 30 TPS and high decentralization with approximately 900,000 validators. Solana, on the other hand, founded by Anatoly Yakovenko in 2017, offers higher transaction speeds (2,000-3,000 TPS) due to its proof of history mechanism but at the cost of decentralization, having about 2,000 validators. Solana raises more funds post-ICO, indicating confidence from investors, while its main challenges involve regulatory scrutiny, further development issues, and competition from projects like Aptos. Ethereum faces fragmentation due to Layer 2 solutions, inherent security issues, and competition. Each blockchain provides different benefits, with Ethereum focusing on security and decentralization, and Solana on scalability. The final takeaway suggests Ethereum might win in terms of long-term security and decentralization, but Solana offers higher short-term growth potential. Neither is deemed the absolute winner, considering personal values on decentralization vs. scalability should influence investment decisions. The video ends by encouraging viewers to explore both cryptocurrencies further, stressing it is not financial advice.

Takeaways

  • 🚀 Ethereum was founded in 2013 by Vitalik Buterin and has become a key player in the crypto world.
  • 🛠️ Solana was founded in 2017, focusing on high-speed transactions using proof of history.
  • 🔐 Ethereum prioritizes decentralization and security with around 900,000 validators.
  • ⚡ Solana offers faster transaction speeds, processing 2,000-3,000 TPS with about 2,000 validators.
  • 📉 Ethereum faces challenges like fragmentation and security issues.
  • 📈 Solana's challenges include regulatory scrutiny and development issues.
  • 💼 Funding confidence in Solana indicates strong investor support post-ICO.
  • 🆚 The core debate is between scalability (Solana) and decentralization/security (Ethereum).
  • 📊 Solana's potential for growth is higher in percentage terms this cycle compared to Ethereum.
  • 📝 The video emphasizes educational purposes, not providing financial advice.

Garis waktu

  • 00:00:00 - 00:05:00

    Ethereum and Solana are two major cryptocurrencies being scrutinized for their potential in the upcoming crypto bull run. Ethereum was created by Vitalik Buterin in 2013 to apply smart contracts in cryptocurrency. It was developed by a team including Gavin Wood and Charles Hoskinson and has become a base layer for many crypto ecosystems due to its first-mover advantage. Solana, founded in 2017 by Anatoli Yakovenko, aims to be a faster, decentralized alternative for trading, raising substantial funds post-ICO, and expanding into payment systems and NFTs.

  • 00:05:00 - 00:10:00

    Ethereum operates a proof of stake blockchain with high decentralization and security, processing 30 transactions per second. There is a concern over centralization risks due to reliance on a few clients for running validator software. Solana can process 2-3,000 transactions per second owing to its proof of history technology but has faced reliability issues due to outages and potential centralization in clients and nodes. Despite technical challenges, Solana continues to improve its infrastructure.

  • 00:10:00 - 00:15:00

    Ethereum's native currency, ETH, does not have a maximum supply, but due to transaction fee burns, it can be deflationary. Its value correlates with market demand, with historical price growth following Bitcoin cycles. Solana's native token, SOL, features an aggressive vesting schedule and a higher inflation rate. SOL's price potential may align with Ethereum's historical performance, but regulatory and market vulnerabilities pose risks. Both cryptos are underpinned by their respective project development and investor support.

  • 00:15:00 - 00:20:00

    Ethereum dominates in adoption, with the Metamask wallet's widespread use and a large ecosystem including decentralized applications and developers. Ethereum's DeFi ecosystem is particularly robust, with significant total value locked. Solana, while having a smaller base, demonstrates strong user growth with approximately 1 million active users and significant developer presence. Its technology-focused community faces challenges around ease of development but is quickly expanding, suggesting rapid future adoption and ecosystem growth.

  • 00:20:00 - 00:25:55

    Ethereum's challenges include scaling with high transaction fees, ongoing development issues affecting security, and competitive pressures from other blockchains. Solana's issues are regulation—potential classification as a security—and historic reliability concerns. It faces strong competition from faster, more user-friendly blockchains like Aptos. The evaluation hinges on prioritizing decentralization and security (favoring Ethereum) versus growth potential and scalability (favoring Solana). Ethereum is seen as more secure, but Solana offers higher growth prospects.

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Peta Pikiran

Mind Map

Video Tanya Jawab

  • Who founded Ethereum?

    Ethereum was founded by computer science student Vitalik Buterin in 2013, along with seven other co-founders.

  • What is Solana's purpose?

    Solana was created to become a decentralized competitor to stock exchanges such as the NASDAQ.

  • How many transactions per second can Ethereum process?

    Ethereum can currently process around 30 transactions per second.

  • How does Solana's transaction speed compare to Ethereum's?

    Solana can process between 2,000 and 3,000 transactions per second, compared to Ethereum's 30 transactions per second.

  • What is the main challenge for Ethereum?

    Ethereum's main challenges include fragmentation, security issues, and competition from other blockchains.

  • What consensus mechanism does Solana use?

    Solana uses a proof of stake blockchain that timestamps transactions using proof of history.

  • What are Solana's challenges?

    Solana's challenges include regulatory scrutiny, security issues, and competition from other blockchains like Aptos.

  • How does Ethereum's decentralization compare to Solana's?

    Ethereum is more decentralized with around 900,000 validators compared to Solana's approximate 2,000 validators.

  • What is the focus of the video's technological comparison?

    The video compares the technological advancements and limitations of Ethereum's and Solana's blockchains.

  • Is this video financial advice?

    No, the video is not financial advice; it's meant for educational purposes.

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Gulir Otomatis:
  • 00:00:01
    ethereum versus salana it's a crypto
  • 00:00:04
    competition that everyone has been
  • 00:00:06
    watching for the last year and it's one
  • 00:00:08
    that's likely to become the headline
  • 00:00:10
    event of the next crypto Bull Run that's
  • 00:00:13
    why today we're going to compare these
  • 00:00:15
    heavyweight crypto projects from top to
  • 00:00:17
    bottom and tell you which we think has
  • 00:00:20
    the most potential this year so if you
  • 00:00:23
    hold eth Soul or both this is a video
  • 00:00:27
    you cannot
  • 00:00:28
    miss now I'll begin of course by saying
  • 00:00:31
    that nothing in this video is financial
  • 00:00:33
    advice it's purely educational content
  • 00:00:36
    that's meant to assist you on your
  • 00:00:37
    crypto Quest and I'll also note that
  • 00:00:40
    most of us here at the coin Bureau
  • 00:00:42
    myself included hold both eth and soul
  • 00:00:46
    in our crypto portfolios okay that said
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    let's start with round one the founders
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    and funding so ethereum is a smart
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    contract cryptocurrency that was
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    originally founded by computer science
  • 00:00:59
    student vitalic buaran in 2013 after he
  • 00:01:03
    tried and failed to implement smart
  • 00:01:06
    contracts on bitcoin ethereum
  • 00:01:08
    technically has eight co-founders
  • 00:01:11
    including padok co-founder Gavin wood
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    and cardano founder Charles
  • 00:01:15
    hoskinson these eight co-founders built
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    the project with Joseph lubben
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    co-founding an American company called
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    consensus to build much of ethereum's
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    most popular
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    infrastructure ethereum's ongoing
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    development is coordinated by the
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    ethereum foundation a Swiss nonprofit
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    which provides developer grants and such
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    ethereum is believed to have raised
  • 00:01:39
    roughly $18 million worth of BTC in a
  • 00:01:42
    2014 Ico and its main net went live in
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    2015 although ethereum is still
  • 00:01:49
    technically in development it is to all
  • 00:01:52
    intents and purposes complete and has
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    become the de facto base layer for a
  • 00:01:57
    huge chunk of the crypto EOS system take
  • 00:02:01
    a second to consider that much of the
  • 00:02:03
    value in the crypto Market is derived
  • 00:02:05
    from ethereum in some way most of the
  • 00:02:09
    stable coins in circulation exist on
  • 00:02:11
    ethereum most of the top 100 cryptos are
  • 00:02:15
    tokens built on ethereum or coins based
  • 00:02:18
    on ethereum's code such are the
  • 00:02:20
    consequences of ethereum's first mover
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    Advantage now salana is a smart contract
  • 00:02:26
    crypto that was founded in 2017 by
  • 00:02:28
    former qual engineer Anatoli yakovenko
  • 00:02:32
    this was after he discovered a way to
  • 00:02:34
    make a decentralized system that's as
  • 00:02:37
    fast as a centralized one sana's
  • 00:02:40
    original purpose was to become a
  • 00:02:42
    decentralized competitor to stock
  • 00:02:45
    exchanges like the NASDAQ and salana was
  • 00:02:48
    created by an American software company
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    called salana labs and its ongoing
  • 00:02:53
    development is coordinated by the salana
  • 00:02:55
    foundation a Swiss nonprofit which
  • 00:02:57
    likewise provides developer grants and
  • 00:02:59
    such
  • 00:03:00
    salana raised roughly $25 million across
  • 00:03:04
    various icos in 2018 2019 and 2020
  • 00:03:08
    notably salana also raised an additional
  • 00:03:11
    $314 million in 2021 this is notable
  • 00:03:15
    because it's very rare for a crypto
  • 00:03:17
    project to receive funding after its Ico
  • 00:03:21
    and particularly after its launch many
  • 00:03:23
    have taken this as a vote of confidence
  • 00:03:26
    from the various VCS who back salana
  • 00:03:29
    most of whom are affiliated with Wall
  • 00:03:31
    Street anyway sana's main net launched
  • 00:03:34
    in 2020 while salana is likewise
  • 00:03:37
    complete to all intents and purposes it
  • 00:03:39
    too is still technically in development
  • 00:03:43
    and Solana's scope has also expanded
  • 00:03:45
    from being a decentralized stock
  • 00:03:47
    exchange to providing all manner of use
  • 00:03:49
    cases namely stablecoin crypto payments
  • 00:03:52
    and nfts as a fun fact salana was once
  • 00:03:56
    the official blockchain for circles usdc
  • 00:03:59
    it's not clear though if this is still
  • 00:04:02
    the case and by the way if you're
  • 00:04:03
    enjoying the video so far be sure to
  • 00:04:05
    smash that like button to give it a
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    boost and now for round two the
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    technology ethereum uses a proof of
  • 00:04:13
    stake blockchain that leverages a novel
  • 00:04:15
    consensus mechanism called ghost we
  • 00:04:18
    won't get into the specifics of it here
  • 00:04:20
    for the sake of time and Sanity ethereum
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    can currently process around 30
  • 00:04:26
    transactions per second but has a
  • 00:04:28
    transaction finality time of around 13
  • 00:04:31
    minutes I'll quickly note that ethereum
  • 00:04:33
    is currently working towards single
  • 00:04:36
    block finality 12 seconds now logically
  • 00:04:39
    the low speed of the ethereum blockchain
  • 00:04:42
    is fundamentally due to the fact that
  • 00:04:44
    it's extremely secure and decentralized
  • 00:04:47
    according to the official ethereum
  • 00:04:49
    staking website there are almost 900,000
  • 00:04:52
    validators on the ethereum blockchain
  • 00:04:55
    which is pretty darn decentralized if
  • 00:04:56
    you ask me the minimum stake to to
  • 00:04:59
    become an ethereum validator is
  • 00:05:01
    currently 32 eth and that works out to
  • 00:05:04
    around $70,000 at current prices staking
  • 00:05:08
    rewards are 3.5% and staked eth is
  • 00:05:12
    locked for 3 days or longer depending on
  • 00:05:14
    the demand for eth
  • 00:05:16
    unstaking any misbehavior by validators
  • 00:05:19
    results in slashing now this barrier to
  • 00:05:22
    entry plus the lack of Delegation is why
  • 00:05:25
    lots of eth staking is being done
  • 00:05:27
    through liquid staking protocols almost
  • 00:05:30
    onethird of all staked eth is being
  • 00:05:33
    staked through Lio Finance alone as many
  • 00:05:37
    people have pointed out this trend
  • 00:05:39
    presents potential centralization risks
  • 00:05:41
    for ethereum moreover most of ethereum's
  • 00:05:44
    validators are using four clients to run
  • 00:05:47
    their software with over 53% using gu
  • 00:05:51
    according to Ether no.org The Ether
  • 00:05:54
    nodes website also notes that almost
  • 00:05:56
    half of ethereum's 6700 nodes are using
  • 00:06:00
    centralized clouds to store ethereum's
  • 00:06:02
    full transaction history now salana uses
  • 00:06:06
    a proof of stake blockchain that
  • 00:06:08
    timestamps transactions using a
  • 00:06:10
    technology called proof of History which
  • 00:06:12
    is often mistaken for being the
  • 00:06:14
    consensus mechanism itself salana can
  • 00:06:17
    currently process between 2 and 3,000
  • 00:06:20
    transactions per second with a
  • 00:06:22
    transaction finality time of 12 seconds
  • 00:06:25
    I'll quickly note that salana can
  • 00:06:27
    theoretically process up to 65 ,000
  • 00:06:30
    transactions per second now logically
  • 00:06:33
    the high speed of the salana blockchain
  • 00:06:35
    is fundamentally due to the fact that
  • 00:06:37
    it's not as secure or decentralized as
  • 00:06:40
    ethereum's as some of you will know the
  • 00:06:42
    salana blockchain has a history of
  • 00:06:45
    experiencing outages for what it's worth
  • 00:06:48
    there have been no outages on salana
  • 00:06:50
    since February last year on the
  • 00:06:52
    decentralization front meanwhile salana
  • 00:06:55
    has just under 2,000 validators
  • 00:06:57
    according to the salana beach Explorer
  • 00:07:00
    the Explorer notes that the top 21
  • 00:07:02
    validators hold enough stake to
  • 00:07:05
    theoretically cause issues on the
  • 00:07:06
    blockchain if they collude this is
  • 00:07:09
    probably a consequence of the fact that
  • 00:07:11
    delegation is possible the Silver Lining
  • 00:07:14
    is that there's no minimum stake
  • 00:07:16
    required to become a salana validator
  • 00:07:19
    staking rewards for validators and
  • 00:07:22
    delegators are roughly 7% per year with
  • 00:07:25
    a 5-day lockup period misbehaving
  • 00:07:27
    validators are slashed but this slashing
  • 00:07:30
    is done manually and is uncommon
  • 00:07:32
    according to staking rewards
  • 00:07:35
    unfortunately salana is even more
  • 00:07:37
    centralized at the client and node level
  • 00:07:40
    salana validators only currently use two
  • 00:07:43
    clients and all of Solana's transaction
  • 00:07:46
    history is stored on Google bigtable a
  • 00:07:49
    centralized server fortunately though
  • 00:07:51
    salana is working on two more clients
  • 00:07:54
    with one of them expected to launch soon
  • 00:07:56
    and you can learn more about that by
  • 00:07:58
    watching our recent salana review the
  • 00:08:00
    link is down in the
  • 00:08:02
    description so this ties into round
  • 00:08:04
    three tokenomics and
  • 00:08:07
    price eth is the native cryptocurrency
  • 00:08:10
    coin of the ethereum blockchain it's
  • 00:08:12
    used for staking and to pay for
  • 00:08:14
    transaction fees eth had an initial
  • 00:08:17
    supply of 72 million which was
  • 00:08:19
    distributed as follows around 83% to Ico
  • 00:08:23
    investors around 8% to the ethereum
  • 00:08:26
    foundation around 4% to the developers
  • 00:08:28
    who originally built ethereum and 4% to
  • 00:08:31
    a program which allowed developers to
  • 00:08:33
    purchase eth at the Ico price of
  • 00:08:37
    31 now eth has no maximum Supply but its
  • 00:08:41
    inflation rate is only around 0.5% per
  • 00:08:44
    year according to Ultrasound money as
  • 00:08:47
    most of you will probably know
  • 00:08:48
    transaction fees are often very high and
  • 00:08:52
    a portion of them are burned this means
  • 00:08:54
    that eth's Supply can be deflationary as
  • 00:08:57
    more eth is being destroyed DED than is
  • 00:08:59
    being created assuming the demand for
  • 00:09:03
    eth stays the same this destruction of
  • 00:09:05
    eth Supply means that its price goes up
  • 00:09:08
    over time and it's safe to say that eth
  • 00:09:11
    has had no problems with price over its
  • 00:09:14
    history eth has risen by more than 7,000
  • 00:09:16
    x from its Ico price note that the fee
  • 00:09:20
    bur was implemented in August
  • 00:09:23
    2021 of course these gains are relative
  • 00:09:26
    to eth's current price now it's
  • 00:09:29
    impossible to predict how high eth could
  • 00:09:31
    go this cycle but it's possible that
  • 00:09:33
    it's following BTC but one cycle behind
  • 00:09:36
    if this is indeed the case then eth's
  • 00:09:39
    market cap could reach over $1.2
  • 00:09:42
    trillion and this would translate to an
  • 00:09:44
    eth price of well over
  • 00:09:46
    $10,000 5 to 7x you can learn more about
  • 00:09:50
    eth's potential by watching our most
  • 00:09:52
    recent ethereum update the link is
  • 00:09:54
    likewise in the description now soul is
  • 00:09:58
    the native crypto Currency coin of the
  • 00:10:00
    salana blockchain it's used for staking
  • 00:10:02
    and to pay for transaction fees Soul had
  • 00:10:06
    an initial supply of 500 million which
  • 00:10:08
    was distributed as follows around 60% to
  • 00:10:11
    investors around 20% to the team and
  • 00:10:14
    around 20% to the foundation the average
  • 00:10:18
    sale price was 20 cents per soul and
  • 00:10:20
    I'll remind you that most of Soul's
  • 00:10:23
    investors were VC firms and two of the
  • 00:10:26
    largest investors were FTX and alamida
  • 00:10:30
    research and you can learn more about
  • 00:10:32
    FTX and alam's involvement in Sal's
  • 00:10:35
    ecosystem using the link in the
  • 00:10:36
    description I digressed anyways soul is
  • 00:10:40
    Infamous for having an extremely
  • 00:10:43
    aggressive vesting schedule as you can
  • 00:10:45
    see here almost all the soul allocated
  • 00:10:48
    to the parties I just mentioned was
  • 00:10:50
    apparently unlocked in January 2021
  • 00:10:53
    what's strange is that this had no
  • 00:10:55
    effect on Soul's price and it seems a
  • 00:10:58
    new vesting schedule was introduced
  • 00:11:01
    later in any case Soul likewise has no
  • 00:11:04
    maximum Supply and currently has an
  • 00:11:06
    inflation rate of around
  • 00:11:08
    6.5% this inflation rate will fall over
  • 00:11:11
    time until it hits around 2% sometime
  • 00:11:14
    towards the end of the decade 50% of
  • 00:11:17
    transaction fees on salana are burned
  • 00:11:19
    but because the fees are low it's harder
  • 00:11:22
    to offset the inflation however this
  • 00:11:25
    hasn't stopped soul from experiencing a
  • 00:11:27
    500x gain from its Ico price more
  • 00:11:31
    importantly our calculations suggest
  • 00:11:33
    that the sell pressure from the FTX and
  • 00:11:35
    alamida bankruptcy will have next to no
  • 00:11:38
    impact on Soul's price note that we
  • 00:11:41
    covered this in our recent salana update
  • 00:11:43
    that I mentioned earlier once again it's
  • 00:11:45
    impossible to predict how high Soul
  • 00:11:47
    could go this cycle but it is possible
  • 00:11:50
    that it's following eth but one cycle
  • 00:11:52
    behind if this is indeed the case then
  • 00:11:55
    Soul's market cap could reach over $500
  • 00:11:57
    billion this would translate to a so
  • 00:12:00
    price of over $11,000 a 10x gain and
  • 00:12:04
    speaking of which if you're planning on
  • 00:12:06
    trading eth or so then you have to check
  • 00:12:08
    out the coin Bureau deals page it's got
  • 00:12:11
    trading fee discounts of up to 60% and
  • 00:12:13
    signup bonuses of up to $40,000 on the
  • 00:12:16
    best crypto exchanges around and these
  • 00:12:19
    deals are available for a limited time
  • 00:12:22
    only so get down to the description
  • 00:12:24
    before the offers
  • 00:12:25
    laps now this relates to round four and
  • 00:12:29
    that's adoption as a rule of thumb you
  • 00:12:31
    can measure a crypto Project's adoption
  • 00:12:33
    by looking at the downloads for its most
  • 00:12:36
    popular browser extension wallets the
  • 00:12:39
    number of users its decentralized
  • 00:12:41
    applications have and the total value
  • 00:12:43
    locked in its defi protocols seeing as
  • 00:12:46
    we're making an important comparison
  • 00:12:48
    we'll throw in some developer stats as
  • 00:12:50
    well so starting with ethereum the
  • 00:12:53
    metamask wallet has over 15 million
  • 00:12:55
    downloads the caveat is that metamask is
  • 00:12:58
    also used by other evm compatible
  • 00:13:01
    blockchains and ethereum's layer 2s
  • 00:13:04
    still when you include all the other
  • 00:13:07
    browser extension wallets for ethereum
  • 00:13:09
    its total user count is likely around
  • 00:13:11
    this 15 million figure according to data
  • 00:13:14
    from dap radar ethereum currently has
  • 00:13:16
    around 400,000 active users this is
  • 00:13:20
    consistent with the number of active
  • 00:13:22
    wallets noted by The Ether scan
  • 00:13:24
    blockchain Explorer if you include
  • 00:13:26
    ethereum's layer 2os this number is much
  • 00:13:29
    higher it's Up For Debate though whether
  • 00:13:32
    they should be included similarly the
  • 00:13:35
    total value locked on ethereum's defi
  • 00:13:37
    protocols currently stands at around $30
  • 00:13:40
    billion according to defi llama but
  • 00:13:42
    around 20 billion of this value is
  • 00:13:45
    coming from eth being staked through Lio
  • 00:13:48
    Finance however even if you disqualify
  • 00:13:50
    this tvl ethereum is still the largest
  • 00:13:53
    chain for defi by a wide margin now for
  • 00:13:57
    developer activity we use data from
  • 00:14:00
    Electric capitals developer report
  • 00:14:02
    dashboard it notes that ethereum has
  • 00:14:05
    almost 6,000 developers almost 2,000 of
  • 00:14:09
    whom are working fulltime again this
  • 00:14:11
    number is much higher if you include the
  • 00:14:14
    devs working on ethereum's layer 2os as
  • 00:14:16
    for salana meanwhile its Phantom wallet
  • 00:14:20
    has over 2 million downloads the caveat
  • 00:14:22
    here is that Phantom has likewise gone
  • 00:14:24
    multi-chain but this was a fairly recent
  • 00:14:27
    change this means this download
  • 00:14:29
    statistic does likely reflect sana's
  • 00:14:32
    total user count particularly because
  • 00:14:34
    the other salana wallets aren't nearly
  • 00:14:36
    as large according to data from dap
  • 00:14:39
    radar salana currently has around 1
  • 00:14:41
    million monthly active users this is
  • 00:14:44
    slightly more than what's noted on the
  • 00:14:46
    soul scan Explorer which reveals that
  • 00:14:48
    this figure is likely due to a huge
  • 00:14:51
    surge in activity in December even so
  • 00:14:54
    the Explorer reveals an average active
  • 00:14:57
    wallet count of 500 ,000 conversely the
  • 00:15:00
    total value locked in salana defi
  • 00:15:03
    protocols is not as impressive it stands
  • 00:15:06
    at just under $1.5 billion with more
  • 00:15:09
    than $1 billion coming from marinade
  • 00:15:12
    Finance which likewise provides liquid
  • 00:15:14
    staking in this case you could arguably
  • 00:15:17
    include it in the tvl as the staking
  • 00:15:19
    barriers are lower for soul put simply
  • 00:15:22
    this staked sole is probably being
  • 00:15:25
    actively used because it's easy to stake
  • 00:15:28
    as a
  • 00:15:29
    delegator as for developer activity
  • 00:15:32
    electric capitals aformentioned
  • 00:15:33
    dashboard notes that salana has around
  • 00:15:35
    950 developers 270 of whom are full-time
  • 00:15:40
    I'll note that the salana foundation
  • 00:15:42
    recently reported that there are over 2
  • 00:15:44
    and a half thousand developers but this
  • 00:15:46
    report included the entire salana
  • 00:15:49
    ecosystem not just salana and as a not
  • 00:15:53
    so fun fact building on salana is
  • 00:15:56
    apparently very difficult Anatoli
  • 00:15:59
    himself has said that building on salana
  • 00:16:01
    is analogous to quote chewing glass and
  • 00:16:05
    salana even has a podcast with the same
  • 00:16:08
    name and this pertains to round five and
  • 00:16:12
    that's challenges we'll provide three
  • 00:16:15
    for
  • 00:16:16
    each ethereum's first challenge is
  • 00:16:19
    fragmentation in its current form the
  • 00:16:22
    ethereum blockchain itself isn't suited
  • 00:16:24
    for the average retail user this is due
  • 00:16:27
    primarily to its Sky High transaction
  • 00:16:29
    fees the result is that most of
  • 00:16:32
    ethereum's adoption and usage has
  • 00:16:34
    migrated to its layer 2os which are
  • 00:16:36
    growing exponentially as coinbase noted
  • 00:16:39
    in a research report from 2022 this
  • 00:16:42
    could create a scenario wherein the
  • 00:16:44
    ethereum blockchain loses adoption and
  • 00:16:46
    usage decreasing the overall demand for
  • 00:16:49
    eth after all the average layer 2 user
  • 00:16:53
    only needs a few dollars of eth the
  • 00:16:55
    average layer one user needs to buy 100
  • 00:16:58
    hundreds of dollars ethereum's Second
  • 00:17:01
    Challenge is security despite being the
  • 00:17:03
    most secure proof of state blockchain
  • 00:17:05
    ethereum has experienced its fair share
  • 00:17:08
    of technical issues over the last year
  • 00:17:10
    the most severe of these were likely the
  • 00:17:13
    transaction finality issues it
  • 00:17:15
    experienced last summer they weren't the
  • 00:17:17
    only issues though now obviously these
  • 00:17:20
    issues are ultimately due to ethereum's
  • 00:17:23
    ongoing development as part of its
  • 00:17:25
    ambitious roadmap for context ethereum's
  • 00:17:28
    develop philosophy is often summarized
  • 00:17:30
    as move fast and break things this will
  • 00:17:34
    likely need to change if etherium wants
  • 00:17:36
    to see more institutional adoption
  • 00:17:39
    ethereum's thirdd challenge follows on
  • 00:17:41
    from the first two and that's
  • 00:17:43
    competition a prominent crypto podcast
  • 00:17:45
    host who shall remain nameless recently
  • 00:17:48
    asked a cutting question would anyone
  • 00:17:51
    use ethereum if it was released today
  • 00:17:54
    given that you can get a better
  • 00:17:55
    experience at a cheaper cost on other
  • 00:17:57
    chains well naturally the answer depends
  • 00:18:00
    on whether you value security and
  • 00:18:03
    decentralization over
  • 00:18:05
    scalability the harsh reality is that
  • 00:18:07
    the average person doesn't care much
  • 00:18:10
    about decentralization much less the
  • 00:18:12
    average financial institution and some
  • 00:18:15
    would go as far as arguing that most
  • 00:18:17
    don't really care about security either
  • 00:18:20
    look no further than the high cyber
  • 00:18:22
    security risks at most companies for
  • 00:18:25
    evidence of that and don't even get me
  • 00:18:27
    started about the poor security most of
  • 00:18:29
    us employ in our daily lives passwords
  • 00:18:33
    sharing data Etc now when it comes to
  • 00:18:37
    salana its first challenge is regulation
  • 00:18:40
    in case you missed the news the SEC
  • 00:18:42
    argued that Soul was a security in its
  • 00:18:45
    lawsuits against binance and coinbase
  • 00:18:47
    and again in a more recent suit against
  • 00:18:50
    Kraken Soul has since been delisted from
  • 00:18:53
    multiple orbe it small crypto exchanges
  • 00:18:56
    in the United States given the outsize
  • 00:19:00
    impact entities like salana labs and the
  • 00:19:02
    salana foundation seem to have on sala's
  • 00:19:06
    ecosystem it's going to be hard to argue
  • 00:19:08
    that soul is not a security if the SEC
  • 00:19:11
    ever decides to actually sue the project
  • 00:19:14
    to be clear this hasn't happened yet but
  • 00:19:17
    it's a very big risk to be aware of
  • 00:19:20
    sana's Second Challenge is also security
  • 00:19:23
    despite having no outages since February
  • 00:19:26
    last year its history of going offline
  • 00:19:29
    seems to have damaged the perceived
  • 00:19:30
    reliability of the project like ethereum
  • 00:19:33
    salana has also embarked on an ambitious
  • 00:19:36
    road map that's likely to result in more
  • 00:19:38
    issues down the line in contrast to
  • 00:19:40
    ethereum sana's ecosystem hasn't become
  • 00:19:43
    systemically important to the crypto
  • 00:19:45
    market so when you combine this with
  • 00:19:48
    sana's history of outages the tolerance
  • 00:19:51
    for these issues will likely be very low
  • 00:19:53
    in the crypto Community if all goes
  • 00:19:55
    according to plan though it should be
  • 00:19:58
    smooth sailing from here sana's third
  • 00:20:01
    challenge is also competition
  • 00:20:03
    specifically from so-called salana
  • 00:20:05
    Killers like Aptos sui and SE Anatoli
  • 00:20:09
    himself has admitted in interviews that
  • 00:20:12
    Aptos makes him nervous due to how easy
  • 00:20:15
    it is to build on its blockchain
  • 00:20:18
    meanwhile say has seemingly surpassed
  • 00:20:20
    salana in terms of speed and finality
  • 00:20:24
    this is more significant than you think
  • 00:20:26
    because sana's biggest selling point so
  • 00:20:28
    far has been that it's fast and cheap on
  • 00:20:32
    paper sana's technology means that its
  • 00:20:35
    speed is only limited by Hardware
  • 00:20:37
    constraints in practice however other
  • 00:20:40
    crypto projects could outpace it and
  • 00:20:42
    that could undermine its USP on that
  • 00:20:46
    note if you want to learn more about say
  • 00:20:48
    and other promising crypto projects
  • 00:20:50
    consider joining the coin bureo club we
  • 00:20:53
    recently reviewed say and we review
  • 00:20:55
    other promising small and midcap
  • 00:20:57
    projects voted on by our members prices
  • 00:21:01
    increase on the 15th of January by the
  • 00:21:03
    way so join ASAP using the link in the
  • 00:21:07
    description all right gloves down let's
  • 00:21:10
    take it from round one the founders and
  • 00:21:13
    funding ethereum arguably wins round one
  • 00:21:16
    especially when you account for the
  • 00:21:17
    period within which these crypto
  • 00:21:19
    projects were founded yes salana funding
  • 00:21:22
    is arguably more impressive but it came
  • 00:21:24
    after an era that was defined by
  • 00:21:27
    ethereum's found
  • 00:21:28
    and its history altering Ico its apples
  • 00:21:31
    to oranges seriously imagine that crypto
  • 00:21:35
    was this large but there was still next
  • 00:21:37
    to no innovation how much money do you
  • 00:21:40
    think a crypto project planning to
  • 00:21:41
    introduce smart contracts would raise it
  • 00:21:44
    would probably raise a lot more than the
  • 00:21:47
    project that's just trying to become a
  • 00:21:49
    faster version of Bitcoin that's for
  • 00:21:51
    sure anyway round two arguably goes to
  • 00:21:54
    ethereum as well that's because the
  • 00:21:56
    project has not only managed to remain
  • 00:21:59
    secure and decentralized enough to
  • 00:22:01
    sustain much of crypto's ecosystem but
  • 00:22:04
    it's managed to do so while
  • 00:22:06
    transitioning from proof of work to
  • 00:22:08
    proof of stake plus making huge changes
  • 00:22:11
    to tokenomics could sana's focus ons
  • 00:22:14
    scalability over decentralization and
  • 00:22:16
    Security pay off in the end though well
  • 00:22:19
    as we noted it probably will because
  • 00:22:21
    most people don't seem to care about
  • 00:22:23
    these things if that's true it's going
  • 00:22:26
    to be a race to the bottom ending with
  • 00:22:28
    all of crypto being run on a centralized
  • 00:22:31
    server controlled by the FED anyhow
  • 00:22:34
    round three arguably goes to salana
  • 00:22:37
    besides the fact that Soul has more
  • 00:22:39
    potential for gains in percentage terms
  • 00:22:41
    during this cycle salana itself also has
  • 00:22:44
    much more room to grow as an ecosystem
  • 00:22:47
    not only that but this is an ecosystem
  • 00:22:49
    that can live on its layer one thanks to
  • 00:22:51
    its Cutting Edge scalability by contrast
  • 00:22:54
    ethereum could in fact lose market share
  • 00:22:57
    to its layer 2os similarly to how it
  • 00:22:59
    lost market share to other layer ones
  • 00:23:01
    during the last cycle make no mistake
  • 00:23:04
    the same thing though could happen this
  • 00:23:06
    cycle with salana and The salana Killers
  • 00:23:09
    but for now salana is far ahead of them
  • 00:23:12
    on most metrics and that's why round
  • 00:23:14
    four arguably goes to salana 2 in case
  • 00:23:17
    you haven't noticed salana appears to
  • 00:23:20
    have the same number of monthly active
  • 00:23:22
    users as ethereum despite being a
  • 00:23:25
    fraction of its size by every
  • 00:23:26
    measurement this is impressive and it
  • 00:23:29
    foreshadows salana becoming the most
  • 00:23:32
    active blockchain of all the caveat in
  • 00:23:34
    this case is that sana's adoption is
  • 00:23:37
    coming mostly from the United States
  • 00:23:39
    where it and the use cases it's focused
  • 00:23:41
    on like crypto payments face big
  • 00:23:44
    regulatory hurdles with a few Strokes of
  • 00:23:47
    a pen sana's growth could come to a
  • 00:23:50
    grinding halt but for now it does seem
  • 00:23:54
    that the SEC has bigger fish to fry so
  • 00:23:57
    this leaves the final round and we're
  • 00:23:59
    tied two for two this is appropriate
  • 00:24:02
    considering that the challenges each of
  • 00:24:04
    these crypto projects face are what will
  • 00:24:06
    make or break them in the end now the
  • 00:24:09
    winner here really depends on whether
  • 00:24:12
    you value decentralization and security
  • 00:24:15
    more than scalability if you're a fan of
  • 00:24:17
    our Channel you'll know that we care a
  • 00:24:19
    lot about decentralization and security
  • 00:24:22
    that's because they're what make crypto
  • 00:24:25
    well crypto without centralization and
  • 00:24:28
    security you literally have just another
  • 00:24:31
    version of the existing Financial system
  • 00:24:34
    that's even worse than the one we have
  • 00:24:36
    now that is a long-winded way of saying
  • 00:24:39
    that we believe ethereum wins the final
  • 00:24:41
    round but I'll also note that there's a
  • 00:24:43
    saying which asks do you want to be
  • 00:24:45
    right or do you want to make money
  • 00:24:48
    there's no denying that salana has more
  • 00:24:51
    potential to grow than ethereum at this
  • 00:24:53
    point in time and that is why we are
  • 00:24:56
    betting on both
  • 00:24:58
    not Financial advice of
  • 00:25:01
    course okay so that's all for today's
  • 00:25:04
    video folks if you learned something new
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    let us know by Smashing that like button
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    if you want to keep learning subscribe
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    to the channel and ping that
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    notification Bell if you want to help
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    others learn take a second to share this
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    video with them assuming they'll watch
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    it of course remember that the coin
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    Bureau deals page has trading fee
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    discounts of up to 60% and signup
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    on the 15th of January I hope you
  • 00:25:35
    remembered where all of the links are
  • 00:25:36
    but if you didn't well they're in the
  • 00:25:38
    description thank you all so much for
  • 00:25:40
    watching and I'll see you in the next
  • 00:25:42
    one this is Guy signing
  • 00:25:48
    [Music]
  • 00:25:53
    off
Tags
  • Ethereum
  • Solana
  • Crypto
  • Blockchain
  • Smart Contracts
  • Decentralization
  • Scalability
  • Technology Comparison
  • Tokenomics
  • Regulatory Challenges