Solana is poised to be the Visa of The Metaverse
January 14,2021 Harriet T.
Recently Bank Of America has come forward to show their support of the Solana blockchain. After hosting Solana Foundation member Lily Liu at a private event BOA stated that Solana could become the “Visa of the digital asset ecosystem.” Again this is probably due to the scalability, low transaction fees, and ease of use of the Solana blockchain.
Solana does prioritize scalability but the blockchain is not as decentralized as other blockchains. This lack of complete decentralized mechanics has left Solana vulnerable to performance issues as of late. Keep in mind blockchains like Ethereum prioritize decentralization and security, but this leads to congestion on the network and ridiculous transaction fees. There are many opportunities for Solana to grab a considerable market share from Ethereum in the future. BOA stated how Solana would be able to distinguish itself through user adoption and developer interest.
There have been critics of the fact that Solana is not completely decentralized but Alkesh Shah the Global Crypto and Digital Asset Strategist of Bank of America felt that it is not a problem and that the benefits of Solana outweigh any drawbacks. In a response to the question of decentralization and Solana, Shah stated “ Its ability to provide high throughput, low cost, and ease of use creates a blockchain optimized for consumer use cases…”
In speaking with dependability there is something that needs to be said about the current state of Solana and constant network slowdowns and DDoS attacks, as there have been many lately and it’s an issue that needs to be handled by the team of Solana.
In checking transactions and comparing the two over the year 2021 Solana has settled over 50 Billion transactions while Visa has settled 164.7 billion. Solana has more than $11 bn in total locked volume that has been used to purchase Solana NFTs. This shows the power of the Solana blockchain especially considering the young age of the Solana compared to the older age of Visa.
Now keep in mind Visa has a tenured history of processing transactions and has been the most trusted credit card all over the world. Solana could very well become this for the metaverse and Bank Of America believes that could be the case.
Imagine all transactions on the Metaverse being handled by Solana. Purchases could be made on the Solana chain for any type of transaction, purchases of games, food, clothing, etc. The metaverse plans to create a new way of interaction and operability on the internet (or web3 ). With the scalability and ease of use of Solana, there is no reason that the blockchain could not develop a sort of “MetaVisa” of its own.
Solana has tons of utility and the possibilities of the Solana blockchain are just now starting to take shape in the future it would not be surprising to see Solana as the main blockchain for making transactions in a fully functional metaverse.