Blockchain Layers

As far as scaling solutions are concerned implementing solutions at different levels is what is known as the blockchain layers.

A blockchain-based protocol can interact directly with the blockchain or can sit on top of a blockchain.

Layer-1 Scaling Solutions

In the decentralized ecosystem, a Layer-1 network refers to a blockchain, while a Layer-2 protocol is a third-party integration that can be used in conjunction with a Layer-1 blockchain. Bitcoin, Litecoin, and Ethereum, for example, are Layer-1 blockchains. Layer-1 scaling solutions augment the base layer of the blockchain protocol itself in order to improve scalability. A number of methodologies are currently being developed — and practiced — that improve the scalability of blockchain networks directly.

Here’s how it works:

Layer-1 solutions change the rules of the protocol directly to increase transaction capacity and speed, while accommodating more users and data. Layer-1 scaling solutions can entail, for example, increasing the amount of data contained in each block, or accelerating the rate at which blocks are confirmed, so as to increase overall network throughput.

Blockchains

1) Solana blockchain

Solana is a public, open-source blockchain that supports smart contracts, including non-fungible tokens (NFTs) and a variety of decentralized applications (dApps). Native to Solana’s blockchain is the SOL token which provides network security through staking as well as a means of transferring value.

2) Ethereum blockchain

Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority.

3) Terra blockchain

Terra is a trustless, programmable blockchain ecommerce platform that offers fiat-pegged stablecoins to provide more stability when conducting cross-border payments.

Purpose of this dashboard

In this dashboard, we will compare Solana vs Ethereum vs Terra blockchains, especially on blockchain's users.

Methodology

There are many users trading and making transactions in particular blockchains every day, which indicates the popularity of a blockchain. So I create a chart in which we compare the number of unique users who make transactions in each blockchain per day.

As you see in the chart above, the number of unique wallets that have sent a transaction on the Ethereum blockchain is higher than two other blockchains. The second higher is belongs to the Solana blockchain. It's half of Ethereum's ones. All blockchains are also experiencing an increase in users.

Solana's users experienced a spike on 17th March and that was huge. On that day, the number of active users of Solana was equal to the number of active users of the Ethereum blockchain.

Transactions count

In addition to the active users of each blockchain, the number of transactions also indicates the popularity and pervasiveness of a blockchain, which means that the more it is, the more pervasive and popular it is.

The huge difference in the number of transactions in Solana and two other blockchains is obvious. This is about ~40 times more than Ethereum's transactions per day. The number of Solana transactions is much higher than other blockchains, which indicates the popularity of this blockchain.

TPS (Transactions Per Second)

Our comparison of TPS of Solana with other blockchains, including Ethereum and Terra, proves Solana's strength in comparison to other blockchains.

As demonstrated in the chart above, Solana's TPS is considerably higher than the other blockchains.

• Over 48x compared to Ethereum
• Over 117x compared to Terra

Market and price effects

Our next section explores the effect of price on the growth of Solana users and daily transactions.

As you see in the chart above, in the first days of February to the 23rd of that month, these two parameters are not correlated and it can be said that they are even negatively correlated on some days like 7th-8th February. Since then, they have found a slight correlation, but with a delay. Also, SOL prices have generally been declining.

The number of daily transactions is correlated with the daily price, which means when the price of the SOL goes down, users are less likely to trade, which is evident from the number of daily transactions.