Visa Lauds Solana’s High Speeds and Low Fees in Deep Dive
The payments giant highlights Solana’s speed and low fees.
Visa announced USDC stablecoin payments on the Solana blockchain. Visa, a global payments giant, has taken a keen interest in Solana. Recognizing the potential of blockchain networks in revolutionizing payment systems, Visa’s recent deep dive into Solana offers insights into its capabilities and why it might be a game-changer in the payments ecosystem. The move is even more interesting in light of Visa’s recent exploration of Solana for its stablecoin pilot. Visa’s Take on Solana’s Potential in PaymentsOn Tuesday, September 12, Visa conducted an in-depth analysis of the Solana blockchain network. The study highlights Solana’s unique attributes, such as high transaction throughput, scalability, and cost-effectiveness. As such, Visa positioned Solana as a potential candidate for payments and Visa’s stablecoin settlement pilot.
Visa highlights several advantages of Solana, including Solana’s average transaction rate of 400 per second. The payments leader notes that Solana’s ability to process transactions in parallel sets it apart from other chains, enhancing network efficiency and preventing congestion. Notably, the transaction rates peak at over 2,000 during high demand. In contrast, Ethereum goes up to 12 TPS and Bitcoin to 7 TPS.
This scalability allows Solana to offer affordable and predictable transaction fees, typically less than $0.001. This also makes it attractive for payment operations. Visa emphasizes the importance of transaction finality and network availability. In particular, they note Solana’s rapid confirmation times and robust network with 1,893 active validators as of July 2023.
Solana’s capabilities are why Visa plans to test its stablecoin settlement functionality on its network.Visa Announces USDC Stablecoin Payments on SolanaOn September 5, 2023, Visa announced its expansion of stablecoin settlement capabilities with Circle’s USDC on the Solana blockchain.
Visa has already conducted live pilots, moving millions of USDC between its partners over the Solana and Ethereum blockchain networks to settle fiat-denominated payments authorized over VisaNet.
Visa is not just working with the Solana blockchain. Earlier, it launched a similar program for USDC settlement on the Ethereum blockchain. On the Flipside While Solana has many validators, these have taken a huge drop since the fall of FTX. The defunct exchange was a major investor in Solana and ran many of its validators.
While the collaboration between Visa and Solana is promising, it’s essential to recognize the challenges. Regulatory hurdles and market volatility can pose significant obstacles in seamlessly integrating crypto and traditional finance. Why This MattersVisa’s move signifies a growing acceptance of cryptocurrencies in mainstream finance. For crypto traders, this could mean more opportunities, increased liquidity, and a broader audience for digital currencies.