Solana is much faster than Bitcoin, uses a different consensus mechanism, and supports DeFi and dApp. However, Solana has thresholds for onboarding validators, while Bitcoin has no restrictions on miners.
In simple words, Solana is a general-purpose blockchain, while Bitcoin is an application-specific blockchain.
The Differences
It is a second-generation blockchain focused on scalability and is different from Bitcoin, which was intended to be a peer-to-peer payments blockchain.
Consensus Mechanism
It uses a Proof-of-Stake consensus mechanism in which validators must stake a minimum amount of capital, say 1000 SOL, to sign transactions and earn rewards. It requires much less energy and can be run on high-end computers.
Bitcoin uses a Proof-of-Work blockchain in which miners need powerful computers to perform complex calculations that validate transactions. It is a much more energy-intensive process due to its complexity. Although it can run on mini computers, the validation process will be much slower, and the incentives will be negligible.
Speed
Its processes roughly 4,000 transactions per second, which is its normal real-world demand. However, it can easily scale to approximately 65,000 transactions per second. This was achieved in real-time during the Trump Memecoin launch on Jan 18, 2025.
Decentralization
Bitcoin is far more decentralized, with over 1 million unique miners spread across the world, whereas It has around 380 validators.
A larger number of validators increases trust in the blockchain by leaving less room for fraud or other crimes.
Security
Bitcoin is considered much more secure due to its legacy and a single major hack in its early years (2010). Whereas, It is considered less secure due to frequent past failures before 2024.
Defi
It has native support for building a DeFi ecosystem, and its ecosystem holds roughly $8 billion worth of TVL. Bitcoin has no native support for DeFi.
dApps
You can build a decentralized application on Solana, which you cannot do on Bitcoin because the latter lacks smart contracts.
What Makes Solana Better Than Bitcoin?
Solana has DeFi, Dapps, and Smart Contracts for user-led development, whereas in Bitcoin, only the core contributors can develop.
What Makes Bitcoin Better Than Solana?
Bitcoin has much more acceptability and institutional adoption which protects itself against price fluctuations.
If Solana has better features, why is Bitcoin more expensive?
Bitcoin was launched a decade earlier, in January 2009, whereas Solana was launched in 2020. This gave Bitcoin a first-mover advantage. By the time it was launched, Bitcoin was already worth half a trillion.
Frequently Asked Questions
Who was the creator of Solana?
Solana was created by Anatoly Yakovenko in 2020.
Who created Bitcoin?
Bitcoin was created in 2007-2009 by mysterious cryptographer Satoshi Nakamoto.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
