- Visa selects Solana for stablecoin pilot, citing high throughput and low fees.
- Solana’s parallel processing and rapid transaction finality are key attractions for Visa.
- Visa extends blockchain-based payment solutions, assessing Solana’s suitability for corporate operations.
Visa has unveiled its rationale for partnering with the Solana blockchain network in its stablecoin settlement pilot. The move aligns with Visa’s commitment to enhancing cross-border money transfers through blockchain technology.
According to its detailed article, Visa has many reasons for why it picked Solana. For instance, Solana’s impressive transaction throughput, averaging 400 transactions per second, attracted Visa. During peak demand, it can exceed 2,000 transactions per second, far surpassing Ethereum’s 12 transactions per second.
In addition, Solana’s ability to process transactions in parallel ensures efficient support for payment and settlement scenarios, reducing network congestion.
Incidentally, Solana offers low and stable transaction fees, typically under $0.001. This makes it cost-effective for payment operations compared to Bitcoin and Ethereum, which have fluctuating fees.
Also, Solana’s slot time of 400 milliseconds contributes to swift transaction confirmations, meeting modern demands for quick settlement. Not to mention the network’s availability. With 1,893 active validators and 925 RPC nodes across 40 countries as of July 2023, Solana’s diverse and resilient network provides reliability even during adverse events.
Also adding to its pros list is the fact that Solana’s use of multiple validator clients enhances network stability. In turn, it reducs the risk of software flaws impacting the entire network.
Visa’s integration of Solana aims to assess its suitability for modern corporate treasury operations. This follows Visa’s previous use of Ethereum for USDC transfers and extends its blockchain-based payment solutions. Visa’s move underscores its commitment to faster cross-border settlements using stablecoins and global blockchain networks.
At the time of reporting, SOL is trading at $18.19, having rebounded from the 61.8% Fibonacci retracement level. Visa’s collaboration with Solana positions it as a pioneer in blockchain-based payment innovations.
