Today the Syscoin cryptocurrency is becoming more and more popular, and many users believe that it is capable of becoming the second Ethereum. However, what about Solana crypto, which was predicted the same future? Even though both platforms have a lot in common: high performance and speed, low fees, and smart contracts, these crypto projects are entirely different in their architecture. In this article, we try to find out which of the two cryptocurrencies is capable of taking the palm.
Before diving into the technical aspects, it is necessary to consider the history of each of the projects. It indicates the strength of the project’s foundation.
A Brief History of Solana
Solana is a monolithic Layer 1 blockchain that allows developers to create efficient, fast, and cost-effective decentralized applications. The project was launched in 2017. The founders of Solana are Eric Williams, Greg Fitzgerald, and former Qualcomm and Dropbox developer Anatoly Yakovenko. On March 23, 2020, the Dutch auction of Solana tokens took place. The peculiarity of this sale was that its participants could return up to 90% of the invested funds. In March 2020, the project was released.
Currently, the project is one of the fastest-growing ecosystems in the blockchain industry. Solana accommodates many different decentralized applications (dApps). Thus, more than several hundred dApps are supported here, including decentralized finance (DeFi), non-fungible tokens (NFTs), and much more.
A Brief History of Syscoin
Syscoin is a project launched in 2014 and has gone through many difficulties and modifications by 2022. Initially, the project was intended to become a decentralized marketplace capable of eliminating intermediaries, reducing fees, and speeding up payments. Nevertheless, a sad fate awaited the project. Shortly after the end of the ICO, most of the collected funds were stolen by a hired escrow agent Moolah. However, the development team did not give up and continued working on the project. In 2016, the Blockchain Foundry was launched, soon releasing the Blockmaster — an e-commerce platform on the blockchain. In 2018, after several improvements, Syscoin 3.0 was released. And in 2021, the project team updated the roadmap providing a vision of Syscoin 4.0 — potentially the fastest, safest, and most decentralized blockchain.
What Makes Solana Special?
Solana is one of the fastest blockchains, thanks to its unique, innovative infrastructure. The project processes block every 400 milliseconds, which allows for completing transactions in a matter of seconds. The Solana blockchain can support more than 65 thousand transactions per second (TPS), with the ability to increase this speed as the network grows. In addition, the Solana Foundation and the development team strive to provide the lowest possible cost to end-users. Accordingly, the average price of one transaction on the Solana blockchain is $0.00025. Moreover, Solana offers a variety of tools to help developers launch their projects. In addition, developers can easily integrate dApps existing on other blockchains into the Solana blockchain.
The Solana blockchain operates on an eco-friendly Proof-of-History (PoH) consensus algorithm. Each transaction or piece of data receives a unique timestamp that displays the state, index, and data using cryptographically protected hashes. In this way, it can guarantee the order of events and accurately determine the time of data creation. Although PoH is crucial to the consensus model, it is not the primary consensus protocol. Instead, Solana also uses a practical Byzantine Fault Tolerance (pBFT) mechanism called “Tower BFT.” In Solana, stakeholders can delegate their tokens to validators so that they process transactions and protect the network. To date, Solana has more than 1,700 validator nodes, which makes the blockchain entirely secure and decentralized.
In total, developers have implemented eight key technologies to make the Solana blockchain fast, cost-effective, and secure, for example:
- Turbine — a protocol for block propagation, which allows validator nodes to work faster with less electricity consumption.
- Gulfstream — a protocol that helps validators process transactions faster and without delays.
- Seavel — a smart contract protocol that allows parallel processing and improves performance.
These technologies are part of Solana’s monolithic architecture and allow it to achieve competitive speed, low fees, and efficiency.
Nevertheless, Solana’s monolithic architecture is criticized by many experts who predict the success of modular blockchains. Unfortunately, recently Solana has experienced several failures that have allowed to doubt its stability. For example, in September 2021, the Solana blockchain did not process transactions for more than 10 hours. In addition, the crypto community criticizes Solana because of its centralization. About 50% of SOL is owned by venture capitalists, which negatively affects users’ trust.
What Makes Syscoin Special?
Syscoin is a blockchain with a modular architecture that has absorbed all the best from the two giants, Bitcoin and Ethereum. The Syscoin blockchain is divided into two layers: the first layer is the main Proof-of-Work Syscoin blockchain, which is highly secure since it is merge-mined with Bitcoin. Here, it should be kept in mind that although Bitcoin is criticized for its high electricity consumption and harm to the environment, its blockchain has a top level of security. So, Syscoin is also a Proof-of-Work blockchain that has about 20% of the hash power consumed by Bitcoin. Users who mine blocks in Bitcoin can also simultaneously mine SYS coins without additional costs. Moreover, Syscoin uses a Chainlock technology developed by Dash, reducing network hijacking risk. Since there are more than 2500 master nodes in Syscoin, the network is incredibly decentralized.
The second Syscoin layer is the smart contract layer. Syscoin developers have created a Network Enhanced Virtual Machine (NEVM) that is fully compatible with the Ethereum Virtual Machine (EVM) and allows you to create high-performance, secure, and fast smart contracts with minimum costs. In addition, the developers are implementing ZK-rollups technology, which will allow the Syscoin blockchain to process more than 210 thousand TPS. ZK-rollups technology combines hundreds of transactions into one and generates a zero-knowledge cryptographic proof. Next, a tangle of transactions is sent to validators for verification, after which the smart contract verifies the transactions, and they are added to the block.
Moreover, in Q3 2022, Syscoin expects another update — Validium, which will allow an incredible 4 million TPS throughput. Validium is a kind of ZK-rollups that processes transactions not on-chain but off-chain, which will make the network incredibly faster. Thus, thanks to the modular architecture, the project team achieved a high level of decentralization and scalability without sacrificing security.
The crucial point is that Syscoin allows developers to create crypto projects that comply with regulatory norms. Perhaps this is not such an obvious advantage at the moment. Still, every year, countries’ governments are trying to control more and more companies that use cryptocurrency in their activities. Therefore, creating regulatory compliant projects from the beginning will eliminate headaches in the future.
So What’s the Verdict?
To date, Solana is significantly ahead of Syscoin in terms of popularity and market capitalization. The project has already become home to many well-known DeFi applications, such as Serum, Raydium, Solanart, etc. Solana has a strong and dedicated community and influential partnerships and provides a wide range of services. Nevertheless, the developers of Solana are trying to cram all innovative technologies into one blockchain without dealing with sharded chains and Layer 2 scaling solutions. As practice shows, this approach is challenging to implement, and recently the Solana blockchain has often faced congestion and failures. Syscoin is only gaining momentum, and it still has to go through a thorny path. The developers claim that the purpose of Syscoin is to motivate developers to transfer their decentralized applications from Ethereum to the Syscoin blockchain. Thanks to the modular architecture and ZK-rollups technology, Syscoin will be able to achieve unprecedented speed while remaining cost-effective and secure. In addition, Syscoin provides a potentially important feature for developers — to create tokens that meet regulatory requirements. If the Syscoin developers can realize all their plans, the project has every chance of success.
Where to Buy and Store $SYS and $SOL?
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