Visa is showing a deep interest in the Solana blockchain network. Recognizing the potential of blockchain networks to transform payment systems, Visa’s recent in-depth analysis of Solana offers insights into its capabilities.
On Tuesday (12), Visa conducted a detailed analysis of the Solana blockchain network. The study highlighted Solana’s distinct attributes such as high transaction throughput, scalability, and cost-effectiveness.
Visa has positioned Solana as a strong candidate for payments and to be used in its stablecoin settlement pilot. The company highlighted several advantages of Solana, including the impressive average of 400 transactions per second.
According to Visa, blockchain’s ability to process transactions in parallel sets it apart from other blockchains, increasing efficiency and avoiding congestion. Even during periods of high demand, the platform’s transaction fees remain at affordable levels, generally below $0.001. In comparison, Ethereum supports 12 transactions per second and Bitcoin supports 7.
This scalability allows Solana to offer predictable and affordable transaction fees, making it an attractive choice for payment operations.
Visa praises Solana
On September 5, 2023, Visa announced its expansion of stablecoin settlement capabilities with Circle’s USDC on the Solana blockchain.
Visa has already conducted tests moving millions of USDC between its partners via the Solana and Ethereum blockchains to settle VisaNet-authorized fiat payments.
However, it is important to note that the SOL network has faced recent challenges related to the downfall of FTX, a large investor in Solana that managed many of its validators.
While the collaboration between Visa and Solana is promising, it is essential to recognize challenges such as regulatory hurdles and market volatility.
“Visa’s move represents a growing acceptance of cryptocurrencies in traditional finance, which could open up new opportunities and liquidity for cryptocurrency traders and a broader audience for digital currencies. This is a significant step forward in the adoption of cryptocurrencies on the global financial scene,” said analyst David Marsanic.