Solana’s Co-founder clarifies Between Ethereum and Bitcoin: Here’s the Reason

Solana’s co-founder Anatoly Yakovenko recently compared Ethereum to the Bitcoin Network during discussions about Bitcoin’s slow price growth. In social media conversations, both Yakovenko and users pointed out several key differences between the two networks. One of the most notable distinctions is the energy consumption of Bitcoin, which operates on a Proof-of-Work (PoW) consensus model. In contrast, Ethereum has transitioned to a Proof-of-Stake (PoS) model, which is more energy efficient. This shift has led to debates about the long-term sustainability of Bitcoin’s energy-intensive mining process compared to Ethereum’s greener approach. Additionally, Ethereum’s PoS model allows for greater scalability and flexibility, which has become a central point of discussion in comparing the two major blockchains. These differences, according to Yakovenko, contribute to the varying adoption and development patterns observed in both ecosystems.

Solana’s Co-founder Compares Ethereum and Bitcoin

In a recent community discussion, Solana co-founder Anatoly Yakovenko mentioned that Ethereum and Bitcoin are similar, with the key difference being energy consumption, leading to a gap in capital expenditure. X user R89Capital asked those who believe Ethereum should be worth trillions to highlight developments that justify its expected price growth.

Although Ethereum is the largest decentralized network for smart contracts, its token ETH has yet to achieve the same level of global adoption as Bitcoin. Many users consider Bitcoin a store of value that attracts retail and institutional investors, especially during shifts in macroeconomic factors.

Yakovenko noted that both networks are similar except for their energy usage. Bitcoin, being a Proof-of-Work blockchain, relies on miners, resulting in high energy consumption due to the computational power needed. In contrast, Ethereum’s transition to Proof-of-Stake significantly reduced its energy usage. The Solana co-founder emphasized that this decrease in energy consumption lowers Ethereum’s overall capital expenditure, a factor that distinguishes it from Bitcoin. However, despite the expectations for a price surge after Ethereum’s Merge, its price has struggled compared to Bitcoin.

Users Stress More Differences

Aside from differences in consensus mechanisms and energy consumption, crypto users noted Bitcoin’s widespread use as a store of value and payment option. Despite Ethereum’s growing adoption, its token Ether has not seen the same mainstream growth as Bitcoin when it comes to payments or serving as a hedge against inflation. In some countries, citizens have increasingly turned to Bitcoin due to negative macroeconomic conditions, viewing it as a safer financial asset.

A significant boost for Bitcoin came from the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC), which opened the door to billions in traditional investments. This development further cemented Bitcoin’s role as a store of value, whereas Ethereum’s growth has been more focused on decentralized applications and smart contracts.

Meanwhile, Solana continues to carve out its niche, often compared to Ethereum for its speed and lower costs. Solana’s Proof-of-History consensus offers a distinct approach to scalability, which has attracted developers. Additionally, Solana’s performance in decentralized finance (DeFi) and non-fungible tokens (NFTs) makes it a key player in the blockchain space, though it still trails behind Bitcoin and Ethereum in market cap. Solana’s emphasis on low transaction fees and high throughput positions it as a competitor to Ethereum, particularly in areas where speed and cost are essential. While Bitcoin dominates as a store of value and Ethereum focuses on smart contracts, Solana aims to establish itself as the go-to network for fast, scalable applications.