SOLANA is a blockchain platform that aims to provide fast, scalable, and low-cost solutions for decentralized applications. It is one of the most promising contenders in the race to challenge Ethereum’s dominance in the crypto space. I will explain why I believe that SOLANA will not just catch Ethereum’s $270b Market cap it will tear through it into the $ trillions by 2030.
SOLANA’s main advantage over Ethereum is its high performance and efficiency. SOLANA claims to be able to process over 50,000 transactions per second (TPS) with sub-second finality and minimal fees. This is orders of magnitude faster and cheaper than Ethereum, which currently struggles with congestion, high gas costs, and slow confirmation times.
Solana (SOL) was one of the best performers among the top 10 cryptocurrencies this December, plunging by more than 10% and breaking below $113 from $120. The high-performance blockchain platform saw its price peak at $260 on November 24, but has since entered a downtrend that has erased about 30% of its value. The correction was likely influenced by the overall market sentiment, as well as some specific factors related to Solana.
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SOLANA achieves this feat by using a novel consensus mechanism called Proof of History (PoH), which allows the network to timestamp and order transactions without relying on a single leader or validator. PoH enables SOLANA to run parallel processing across its network of nodes, resulting in a highly scalable and secure system.
Another key feature of SOLANA is its compatibility with Ethereum. SOLANA supports the Ethereum Virtual Machine (EVM), which means that developers can easily port their existing smart contracts and dApps from Ethereum to SOLANA without much hassle.
SOLANA also offers a bridge called Wormhole, which allows users to transfer tokens and data across different blockchains, including Ethereum, Binance Smart Chain, Terra, and others. This interoperability gives SOLANA access to a large and diverse ecosystem of projects, users, and liquidity.
Wormhole is a decentralized protocol that uses special validators called guardians to verify and relay cross-chain transactions. Wormhole uses a two-way peg mechanism, which means that users can lock their tokens on one chain and mint corresponding tokens on another chain. For example, a user can lock their ETH on Ethereum and mint wETH on SOLANA, or vice versa.
The tokens are always backed by the original assets and can be redeemed at any time. Wormhole also supports transferring arbitrary data across chains, such as NFT metadata or oracle data. This enables cross-chain communication and integration for various dApps.
SOLANA also has a strong and growing community of supporters, investors, and developers. SOLANA has raised over $300 million from prominent venture capital firms such as Andreessen Horowitz, Alameda Research, Multicoin Capital, and others.
SOLANA also hosts an annual hackathon called Solana Season, which attracts thousands of participants from around the world who compete to build innovative and cutting-edge dApps on the platform. Some of the notable projects that have emerged from the hackathon include Audius, a decentralized music streaming service; Metaplex, a platform for creating and selling NFTs; and Star Atlas, a massive multiplayer online game.
All these factors make SOLANA a formidable force in the crypto industry. I believe that SOLANA has the potential to surpass Ethereum in terms of adoption, innovation, and value creation. By 2030, I expect SOLANA to reach a market cap of several trillions of dollars, reflecting its superior technology, compatibility, and community. SOLANA is not just a competitor to Ethereum; it is a game-changer for the future of decentralized applications.
Japan to end Crypto tax on unrealized Profits
In a landmark decision, the Japanese government has announced that it will no longer tax cryptocurrency gains until they are realized. This means that investors and traders can hold their digital assets without paying taxes on paper profits, as long as they don’t sell or exchange them.
The new tax policy, which will take effect from April 2024, is aimed at promoting the development and innovation of the crypto industry in Japan, as well as attracting more foreign investors. The government hopes that by reducing the tax burden on crypto holders, it will encourage more long-term investment and foster a healthy and stable market.
Previously, Japan taxed crypto gains as miscellaneous income, which could range from 15% to 55% depending on the amount and the individual’s income bracket. This was one of the highest tax rates for crypto in the world, and many critics argued that it discouraged people from investing in digital assets or forced them to move their funds to offshore platforms.
The new tax policy will treat crypto gains as capital gains, which are taxed at a flat rate of 20%. However, unlike other capital assets, such as stocks or real estate, crypto gains will only be taxed when they are realized, meaning when the holder sells or exchanges them for fiat or other cryptocurrencies. This will allow crypto holders to benefit from the price appreciation of their assets without paying taxes until they decide to cash out.
The new tax policy is expected to boost the growth and innovation of the crypto industry in Japan, which is already one of the most advanced and regulated markets in the world. Japan was the first country to recognize Bitcoin as a legal form of payment in 2017 and has since established a comprehensive framework for licensing and overseeing crypto exchanges and service providers.
Japan also has a vibrant and active crypto community, with many startups, associations, and initiatives supporting the adoption and development of digital assets.
The new tax policy is also likely to attract more foreign investors and entrepreneurs to Japan, as it will make the country one of the most favorable destinations for crypto investment. By eliminating the tax on unrealized profits, Japan will offer a competitive advantage over other jurisdictions that still impose high taxes on crypto gains, such as the US, UK, or South Korea.
The new tax policy will also reduce the administrative and compliance costs for crypto holders, as they will no longer have to report their paper profits every year.
The new tax policy is a welcome and progressive move by the Japanese government, which shows its commitment and vision to support the crypto industry and its potential to transform the economy and society. By ending the tax on unrealized profits, Japan will create a more conducive and attractive environment for crypto investment and innovation and set an example for other countries to follow.