Even if you are a crypto beginner, you’ve surely heard about BTC and ETH. Most already know how to convert Bitcoin to Ethereum, but what if we tell you that the success lies in learning more about less-known currencies and using that to your advantage?
Solana and the Internet Computer are the two coins we focus on in this article. We’ll tell you everything about them to help you understand their common features and differences.
What Is SOL?
Solana was launched in 2020 with the goal of offering faster transactions and better performance than other networks supporting dApps, such as Ethereum. The network does have many similarities to Ethereum but utilizes a unique consensus mechanism to secure affordable and fast transactions.
Tokenomics is an integral part of the SOL vs ICP showdown. A single Solana token is now worth $31, while the project’s market cap is around $13 billion. That’s enough for SOL to earn a spot in the top ten crypto coins. Solana doesn’t have a maximum token supply, while the circulating supply is 416,846,720 SOL tokens.
What Is ICP?
The Internet Computer Protocol blockchain uses ICP as its native coin, with the goal of rewarding participants and enabling network governance. This blockchain supports the creation of dApps and facilitates fast transactions. It doesn’t use a cloud and centralized servers but runs on dedicated hardware from independent providers.
The network implements a unique chain key cryptography framework. It makes “chain keys” that are public but uses private key material to sign them. ICP has multiple independent chains called subnets.
A single ICP token is now worth $3.5. The project has a market cap set at $1.6 billion, placing it at the 33rd position in the crypto rankings. The maximum supply is infinite, and the total current supply is 508,195,494 ICP tokens. At this point, there are 447,313,582 ICP coins in circulation.
SOL vs ICP: Differences
Solana and the Internet Computer Protocol share many similarities, such as the fact that they use blockchain technology and support dApps. Use cases on both networks include decentralized finance and NFTs, but it seems that Solana currently has a bigger ecosystem. Some popular projects include the Secretum messaging and trading app, the Star Atlas game, and the Phantom digital wallet.
Different consensus mechanisms are another noticeable difference. Solana uses the Proof of History concept, which focuses on proving that a message happened before or after a specific event. It makes a historical track of the events by combining the Verifiable Delay Function with the SHA256 mining algorithm used by Bitcoin.
ICP, on the other hand, uses a Proof-of-useful-work consensus mechanism. It includes a distributed network executing computations for smart contracts on different nodes, as well as proving that all the calculations for the computations are correct. That’s an advanced mechanism, and it’s more efficient than the standard Proof-of-Work.
|60,000 transactions per second
|11,500 transactions per second
|DeFi, NFTs, games, lending protocols
SOL vs ICP: Common Features
Two common features stand out: decentralization and smart contracts. Decentralization indicates that there’s no central authority monitoring or keeping track of the transactions on the platform. Instead, all transfers occur directly between the two parties. That contributes to privacy and ensures an authority like a bank or government won’t know the details of your transaction.
SOL and ICP both utilize smart contracts on their platforms. These contracts are essentially small programs run on a blockchain. The idea is to store vital information of an agreement between two parties in a contract on a blockchain. The agreement is automatically executed once the specified conditions are fulfilled. It’s how two parties can be certain the swap will be completed flawlessly, even without an intermediary.
SOL vs ICP: Final Thoughts
Solana and the Internet Computer both sound like exciting crypto projects. And while Solana might have a better current reputation, ICP can also be an attractive option. It seems to carry a higher risk, but that also means it could yield a larger profit, especially in the long term.
SOL has excellent capabilities when it comes to the speed of processing transactions and a variety of use cases, Combined with the higher market cap, it seems like a smart investment. But SOL and ICP are similar in their smart contract support and decentralization, so ultimately, the choice comes down to one’s preference.