The post Solana Outperforms Ethereum for Stablecoin Payments Over PYUSD, Says PayPal VP appeared on BitcoinEthereumNews.com.

At Solana Breakpoint 2024, PayPal’s VP of Blockchain, Jose Fernandez da Ponte says Ethereum may not be ideal for payment systems – as PayPal advances its crypto presence with PYUSD. At the Solana Breakpoint 2024 conference, PayPal’s Blockchain, Crypto, and Digital Currencies Vice President Jose Fernandez da Ponte explained why Ethereum may not be the best option for payment systems. This announcement comes as PayPal expands its reach in the cryptocurrency market, especially with its dollar-backed stablecoin, PYUSD. PayPal initially launched PYUSD on Ethereum in August 2023. However, in May 2024, PayPal made a notable decision to introduce the stablecoin on Solana. Ponte later offered clear reasons for this change, clarifying PayPal’s strategic choice – with a pointed comment about Ethereum’s shortcomings. “When it comes to payments, we need a network that can handle massive amounts of transactions at high speeds with extremely low costs,” Ponte said. “Unfortunately, Ethereum currently struggles to meet these criteria consistently.” One of the primary issues Ponte highlighted was Ethereum’s transaction processing capabilities. According to the PayPal executive, a functional payment network must be able to handle at least 1,000 transactions per second (tps). Networks like Visa and Mastercard can typically manage 2000 – 10,000 TPS, but at 15-20 TPS Ethereum’s current infrastructure falls well short of this benchmark, creating bottlenecks and prohibitively high gas in high-volume payment scenarios. While the introduction of Layer 2 solutions like rollups (e.g., Optimism, Arbitrum), can scale Ethereum’s potential to thousands of TPS, they handle transactions off-chain and settle them periodically on Ethereum’s main network – a scenario that isn’t appropriate for retail transactions in most cases. According to DefiLliama, the circulating supply of PYUSD experienced a rise of 50.07% on the Solana blockchain. While the remaining 49.93% of the PYUSD supply continues to reside on the Ethereum network,…

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Filed under: News - @ September 22, 2024 4:57 am