H2: Visa’s Reasons for Choosing Solana for Stablecoin Settlement Pilot
Visa has elaborated on its decision to select Solana as part of its stablecoin settlement pilot program. The global payments giant aims to modernize cross-border money transfers by harnessing the power of blockchain technology. According to Visa, Solana’s impressive transaction throughput played a significant role in its selection.
H3: Solana’s Impressive Transaction Throughput
Solana’s average transaction throughput stands at 400 user-generated transactions per second, with the ability to surge to over 2,000 during peak demand. In comparison, Ethereum, one of the leading blockchain networks, manages an average of just 12 transactions per second. Although Solana hasn’t reached Visa’s capacity of 65,000 transactions per second, its parallel transaction processing is a key differentiator.
H3: Parallel Transaction Processing in Solana
Solana’s ability to process transactions in parallel sets it apart from other blockchains like Ethereum, which process transactions sequentially. The parallel transaction processing allows Solana to execute transactions impacting separate accounts simultaneously, thereby ensuring efficient support for payment and settlement scenarios. This multi-threaded approach helps to mitigate network congestion and maintains high throughput.
H3: Low and Predictable Transaction Costs on Solana
Solana offers low and predictable transaction costs. Usually, SOL’s transaction fees are less than $0.001, which makes it an attractive option for payment operations seeking efficiency and cost savings. In contrast, Bitcoin and Ethereum experience fluctuating fees based on network demand. Solana’s localized fee market ensures that congestion in one account doesn’t impact others, providing stability and affordability to users.
H3: Transaction Finality and Network Availability
Solana’s fast slot time of 400 milliseconds contributes to transaction finality, meaning that actions are confirmed on the blockchain network at rapid speeds. With 1,893 active validators and 925 RPC nodes spread across over 40 countries, Solana ensures network availability, resilience, and reliability. The diversity of validator clients also enhances network stability and reduces the risk of software flaws destabilizing the network.
H2: Visa’s Integration of Solana to Meet Modern Demands
Visa’s decision to integrate Solana into its stablecoin settlement pilot program is driven by the blockchain’s technological advantages. Solana’s high throughput, low costs, and extensive node presence make it an ideal choice for modern corporate treasury operations. This move follows Visa’s previous integration of the Ethereum blockchain for USDC transfers in Australia, as the company positions itself at the forefront of blockchain-based payment solutions.
At press time, SOL is trading at $18.06 after bouncing off the 61.8% Fibonacci retracement level.
(Note: Quotes from the original article have been maintained without alteration)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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