Solana and Tron are two of the top proof-of-stake (PoS) networks. While Solana is the 5th largest network by market cap, Tron is the 11th largest.
Since they are both PoS networks, they have many similarities, including their consensus mechanism. Both basically rely on validators who stake their tokens to secure the network and help verify transactions on the network.
They are also more scalable than proof-of-work networks, because they don’t need the complex process of mining to verify transactions. However, they are less secure because of the simplicity of their design.
In this guide, we focus on their differences and unique characteristics to help you decide on which one to use to achieve whatever your goal is.
What Is Solana (SOL)?
Solana is a top PoS crypto network that is fondly referred to as the Ethereum killer. It got this name because of its scalability which makes it resistant to the congestion that plagues other networks like Ethereum.
While Solana offers similar products and services to those of Ethereum, it does so at a much lower cost and processes transactions much faster than you will find on most networks. The power lies in the combination of PoS and a second consensus mechanism known as proof-of-history (PoH).
This PoH is what is responsible for the flexibility of the network, making it to enlarge when the network is getting congested in order to accommodate more transactions. Solana has become a popular hub for decentralized finance (DeFi), non-fungible tokens (NFTs) and other possibilities of web3.
SOL, its native token is used as the token that powers the network. It is used to pay for transaction fees, for staking to secure the network and also for governance. Stars also get rewarded with more SOL as an incentive for them to keep securing the network.
The token has a total supply of 579,682,444 and a circulating supply of 463,543,028 according to Coin Market Cap. Over the years, the token has grown rapidly to become one of the best performing crypto assets.
Just last year, it was the best performing asset among the top ten cryptocurrencies including Bitcoin.
What Is Tron (TRX)?
Tron is another PoS network that is quite popular in the decentralized web space. Its main goal is to make the decentralized web available to everyone. Like any typical PoS network, Tron is quite fast, processing thousands of transactions every second.
The blockchain was first created on Ethereum, but in 2018 became independent with its own native token known as TRX. With the token, users of the network pay transaction fees and stake to secure the network.
TRX also serves as a governance token, empowering users to vote on future developments for the network. TRX is also a popular cryptocurrency among investors who just buy it as a speculative asset.
The token has a total supply of 87,157,985,615, and all the tokens are in circulation already, being premined.
Tron also supports web3 functionalities such as NFTs, smart contracts, making it a relevant network in the web3 ecosystem. The token is listed and traded on several top crypto exchanges where you can buy and trade or hold.
Which Is Better?
We have considered the key differences between Solana and Tron, so which one is better for you to invest in? First, it must be stated that no network is superior to another in every way. However the purpose for buying the asset must be kept in mind when making the decision.
In this case, if the purpose of buying is strictly for long term investment, SOL may be a better option. This is because it has a much smaller supply, which means it will become more valuable as demand for it continues to grow.
On the other hand, if you’re looking for a cheaper asset to invest in, TRX works, but the price isn’t likely to go much higher because of its massive supply.
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