Credit card giant Visa says that one Ethereum (ETH) competitor has unique technological advantages over other blockchains as a payments platform.
In a new company blog post, the financial services titan says that smart contract platform Solana (SOL) has distinctive features that set it apart from its rivals, such as low and predictable transfer fees, high throughput rates and significant node support.
According to Visa, Solana even has the upper hand against the king crypto Bitcoin (BTC) and ETH in some aspects.
“Solana’s transaction fees are not only affordable, usually less than $0.001, but predictable. This level of low-cost predictability helps make it an attractive network to explore efficiencies and cost savings for existing payment operations.
In [the figure] below, Solana clearly stands out from a cost perspective compared to Bitcoin and Ethereum, whose fees can fluctuate unpredictably based on demand for transactions to execute on the network. A network with unpredictable transaction costs can be more difficult for payment companies to manage within their products and can lead to confusing consumer experiences.”
Visa goes on to say that because of Solana’s efficiency, they have decided to expand their stablecoin settlement program to include Solana as a means of testing the blockchain’s capacity to meet the financial demands of modern corporations.
“Solana’s unique technological advantages, including high throughput with parallel processing, low cost with localized fee markets and high resiliency with a significant number of nodes and multiple node clients, work together to create a scalable blockchain platform with a compelling value proposition for payments.
These are some of the reasons that we decided to expand our stablecoin settlement pilot to include transactions over the Solana network. As we pilot our stablecoin settlement functionality on Solana, we plan to test whether Solana has the ability to meet the demands of modern corporate treasury operations.”
Solana is trading for $18.39 at time of writing, a 2.19% increase during the last 24 hours.
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Featured Image: Shutterstock/Fortis Design/Sol Invictus
