The battle between Ethereum and Solana in the DeFi space is becoming intense, with both major blockchains having their own strengths.
*Ethereum: The foundation of serious DeFi*
- Ethereum is the backbone of modern DeFi, where secure and highly interoperable applications can thrive.
- With over 55% of the total value locked (TVL) on major chains being present on Ethereum, its dominant position in DeFi is undeniable.
- Ethereum pursues a modular scaling strategy, with Layer 1 serving as the foundation and Layer 2 handling specialized tasks.
- The maturity of Ethereum and its ability to write smart contracts more simply is also a significant advantage.
*Solana: Fast, smooth, but lacking decentralization*
- Solana approaches the scalability challenge in a completely different way with a single-block architecture, where everything occurs on Layer 1.
- Solana boasts extremely fast transaction speeds, low fees, and a seamless user experience, with the ability to handle 3,000-4,000 transactions per second (TPS).
- However, the design of Solana includes the existence of a "lead node" which raises concerns about centralization.
- Solana is suitable for consumer applications in gaming and fintech but may not be ideal for applications that require high decentralization.