Coin Bureau Debates Solana ($SOL) vs Near Protocol ($NEAR)

Popular crypto market commentary show Coin Bureau recently took a closer look at Solana ($SOL) and Near Protocol ($NEAR).

What Is Near Protocol ($NEAR)?

Here is what Binance Research said about Near Protocol back in October 2020:

“NEAR Protocol is a decentralized application platform designed to make apps similarly usable to those on today’s web. The network runs on a Proof-of-Stake (PoS) consensus mechanism called Nightshade, which aims to provide dynamic scalability and stabilizes fees.

“NEAR is the native utility token of the network and has the following utility:

• Fees for processing transactions and storing data.
• To run a validator node on the network via staking NEAR tokens.
• Used for governance votes to determine how network resources are allocated and where the protocol’s future technical direction will go.“

What Is Solana ($SOL)?

This is what Binance Research says about Solana:

“Founded by former Qualcomm, Intel, and Dropbox engineers in late-2017, Solana is a single-chain, delegated-Proof-of-Stake protocol whose focus is on delivering scalability without sacrificing decentralization or security.

“Core to Solana’s scaling solution is a decentralized clock titled Proof-of-History (PoH), built to solve the problem of time in distributed networks in where there is not a single, trusted, source of time. By using Verifiable Delay Functions, PoH allows each node to locally generate timestamps with SHA256 computations. This eliminates the need for the broadcasts of timestamps accross the network, improving overall network efficiency.“

“Solana’s mission is to support all high-growth and high-frequency blockchain applications, and to democratize the world’s financial systems.“

$SOL is the native token of the Solana blockchain.

Solana vs Near Protocol

Speaking in a recent YouTube update, Coin Bureau host “Guy” told viewers that he preferred $SOL’s tokenomics over that of $NEAR:

“Tokenomics is where Solana shines. I don’t know what they did behind the scenes, but the early investors managed to find a way to both have their cake and eat it and by that, I mean get access to all of their SOL and be able to sell some or even lots of it without crashing SOL’s price.

“As novel as Near Protocol’s transaction fee mechanism is, Solana seems to have a better grasp of the long-term implications of things like fee burns, inflation and staking rewards. There’s also nothing stopping Solana from implementing the same transaction fee mechanism.

“Robust tokenomics is arguably why Solana wins on the price side, too. Even with its massive market cap, there’s a high chance that SOL could see more gains in percentage terms than NEAR when the next bull market comes around simply because it somehow cracked the tokenomic code of cryptocurrency. 

“The wildcard in this prediction is NEAR’s circulating supply which, once it vests, means there will be next to no sell pressure left from Near Protocol’s early investors. This could give NEAR the conditions it needs to really rally when that speculative demand comes back around.“

Image Credit

Featured Image by “Pexels” via Pixabay.com