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There are many reasons why you would want to learn the key differences between Avalanche and Solana. Both networks have a strong Dapp community and following. However, when you pull out the magnifying glass, the differences begin to emerge. Here's some valuable insight into Avalanche vs. Solana.
What is Avalanche?
Avalanche is a gen 3 blockchain that leverages a multi-layered structure to improve onboarding and functionality. The network enables developers to create application-specific dapps that can meet regulatory requirements. As such, there has been a lot of focus on using Avalanche to integrate blockchain efficiency into traditional systems.
Avalanche provides a high level of interoperability within the blockchain sector. The network helps developers create through the use of multiple programming languages such as GO and Solidity. This flexibility and the network's performance have helped it to become a major contender in the market.
What is Solana?
Solana is another gen 3 network that provides support for programmable Dapps and the creation of digital assets. The network provides a high-performance blockchain infrastructure that provides low fees and efficiency. The system uses far less energy than PoW networks like Bitcoin.
Anatoly Yakovenko founded Solana in 2017 intending to improve programmability in the market. At the time, Ethereum was suffering from intense congestion and delays. Solana entered the market as a crucial alternative. Today, the network has grown to include a healthy community of Dapp developers and users.
What Problems was Avalanche Built to Alleviate?
One of the main issues that Avalanche was created to solve was high fees. When Avalanche launched Ethereum was the premier programmable blockchain. The network had fees that were higher than many transactions due to congestion. Avalanche introduces a multi-layer approach that improves performance drastically.
The network is capable of vertical scalability. According to bench tests, Avalanche can support 6500 transactions per second. Additionally, users enjoy sub-second finality which makes the network ideal for regulatory-compliant assets like security tokens. These assets require these requirements to be integrated into the token's smart contracts to ensure compliance throughout the life of the asset.
Inflation has topped headlines as of late due to record-high levels. Currently, the US and EU have 40-year highs. This loss in buying power unequally affects savers. Currently, fiat savers are losing money. Avalanche fights inflation with the introduction of a deflationary protocol. The system burns the network fees which reduces the total supply.
What Problems was Solana Built to Alleviate?
Solana was created to alleviate many of the pain points Ethereum developers suffered from. Network scalability and programmability are at the forefront of its strategy. Bench test put Solana at 29,171 tps which makes it faster than Avalanche. The network also has very low smart contract fees which have helped it become a growing dapp community.
How Does Avalanche Work?
The Avalanche blockchain ecosystem consists of three separate networks that all work together to make the system seamless. Its protocol provides full support for the latest DeFi options including staking and NFTs. Avalanche excels when compliant dapps are needed. The system supports the programming of complex rule-sets to meet regulations including trading requirements.
The X-chain is the first layer of the Avalanche ecosystem. This blockchain is where new digital assets are issued. This structure makes it easy to provide these tokens with customer characteristics and requirements. X-chain supports the minting of tokens and DeFi assets such as NFTs and more.
The C-chain is responsible for Ethereum onboarding. This EVM-compatible chain makes it simple to migrate dapps and assets to Avalanches. The blockchain supports the EVM tool set as well which makes it a seamless transition for those seeking to launch their Ethereum protocols on Avalanches.
P-chain supports the hosting of entire blockchain networks. This approach makes P-chain the administrative chain of the system. It handles tasks such as staking after the validation process. It's also where custom blockchains live. Lastly, the P-chain verifies transactions which makes it responsible for all payment operations.
Token – AVAX
AVAX is the primary utility token for the Avalanche system. You need to hold AVAX to cover the execution of smart contracts or access features of the network. AVAX users can stake their tokens to receive passive returns. Currently, you need to stake 2000AVAX to qualify as a validation node.
How Does Solana Work?
Solana is a Delegated Proof-of-Stake (DPoS) blockchain that supports advanced DeFi protocols. The network features block times faster than much of its competition. Anyone can delegate their tokens to a validator and share in the network rewards. Rewards are based on the number of tokens you delegated.
Solana introduces another layer of validation with the Proof-of-History (PoH) system. This protocol places a timestamp in the blockchain that improves validation times. Developers refer to this system as a cryptographic clock that improves locating blocks and verifying the transaction order. Additionally, the PoH enables nodes to validate transactions simultaneously which drives performance significantly.
Solana developers can use the popular RUST language. RUST is ideal for high-intensity workloads. It also includes a host of memory-safe features that make programming easier. This coding plus, the fact that Solana is open source, makes it a smart selection for developers who need performance
Token – SOL
SOL is the main utility token for the Solana system. Users can stake this token to secure passive returns. You may also send the token internationally in a permissionless manner in seconds. There's a total supply of 489 million SOL available throughout the life of the project.
How to Buy Avalanche (AVAX) and Solana (SOL)
Currently, Avalanche (AVAX) and Solana (SOL) are each available for purchase on the following exchanges.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is a top exchange for USA residents. (Excluding New York & Washington state).
Avalanche vs. Solana – Who's the Champ?
When you delve deeper into the debate of Avalanche vs. Solana it's easy to see that each network has its best use-case scenarios. For example, Avalanche is ideal for compliant dapps. Whereas, Solana provides top performance in terms of tps. As such, both networks fill a niche in the industry. You can learn more about Avalanche here and Solana here.