Comparison Ethereum vs. Solana vs. Signum
Given the similarity of Signum and Solana in terms of transactional capacity, we will provide a short comparison of these two open source projects. We also include Ethereum for additional context. Due to substantial differences in technical details and capabilities of these blockchains, this overview can only be a starting point for further exploration of Signum’s unique technology.
Before jumping into the comparison, a quick note on Signum’s consensus — a high quality feature, given the ubiquitous discussions around sustainability and decentralization in the blockchain world:
Since it’s inception in 2014, Signum has been green. It’s current version Proof of Commitment (PoC+) uses available disk space in combination with staking. The mining process for PoC+ is so effective and has such low hardware requirements that any consumer-grade PC can be used. The big implication is that basically anyone with a hard drive can join the network. The very low cost of participation invites a large number of validators, which makes for substantial decentralization and high security.
For comparison: Solana uses Proof of History (PoH), which needs a hardware setup similar to Ethereum’s. The core problem is that meaningful participation presupposes an investment of several thousand dollars in (specialized) equipment. This of course decreases the group of potential validators significantly and undermines decentralization.
Remarks on Market Capitalization
Although this paper focuses mainly on technical aspects, it is worth also considering the commercial side — if only to preempt the potential argument ‘If Signum is as great as you say, why is it’s market cap so low?’.
Here is our thinking on this (which of course is not intended as financial advice whatsoever):
Solana has been the most recent shooting star when it comes to growing an ecosystem and increasing market cap of its cryptocurrency SOL. Within less than two years, SOL went from around USD 0.60 in early 2020 to it’s peak of USD 259.0 in November 2021, increasing nearly 430x. Like other projects, Solana has benefited from a virtuous cycle in which price increases attract attention and projects, leading another price increase, and so on.
Signum in contrast has not even really become the new kid on the block yet. Almost no one has ever heard of it. The price of it’s coin SIGNA is therefore still extremely low (but already higher than SOL just 18 months ago, see below). This is because Signum is a complete makeover of a pioneer blockchain. Its underlying technology has proven successful since 2014, but the complete technological overhaul and re-branding have only just been completed very recently.
There are many reasons why Signum might see a dynamic similar to Solana’s, the most important of which are as follows:
* Signum has a sophisticated technology which offers a unique platform for a tokenized world. As argued in this paper, Signum has developed cutting edge solutions to significant technical problems. A comprehensive discussion of all of Signum’s capabilities is beyond the scope of this paper; please visit Signum’s website to learn more.
* Almost nobody in the blockchain space has taken note of Signum/Signa yet. As a direct consequence, there are only a very small number of projects running on the chain — and therefore very little demand for Signa from the developer and investor community. However, that could change overnight once Signum installs professional marketing and PR capacities. And as with Solana, this push in public awareness will most likely start a virtuous cycle that will be reflected in the price of Signa.
* Signum is pursuing the strategy of becoming a major building block in a multi-blockchain world. Connectivity will therefore always be a major element of the product roadmap. This ecosystem strategy will lead to the integration of Signum into many existing projects around the world — no need to start from zero ourselves.
From an investor’s perspective, the above leads to the following line of thought: As this project is not yet widely known, none of its future potential is currently priced into SIGNA. And considering that Solana went from a market cap of 4 million USD (May 2020) to 75 billion USD (November 2021) within 18 months (!), there seems to be a lot of potential for Signum/Signa.
Today, Signum/Signa has a market cap of around 10 million USD, which is 2x that of Solana just 18 months ago. If Signum now becomes more and more visible to the world, Signa might see a massive value increase as well. If Signum shows just 20% of the dynamic that Solana experienced, Signa’s market cap could go from 10 million USD to 1.2 billion USD (120x compared to Solana’s 430x).
So the short answer to our initial question ‘If Signum is as great as stated, why is it’s market cap so low?’ might simply be ‘Because nobody knows about it yet’.
Summary
In this paper, we exhibit our calculations concerning the behavior of ‘big blockchain’ once tokenization becomes mainstream and the number of associated transactions increase to multiples of today’s levels. The core findings are
* Today’s big blockchains were not built to run transaction tokens at scale
* We expect these blockchains to crash as soon as large amounts tokens are deployed
* Signum’s technology overcomes the shortcomings of the established blockchains
* Signum’s approach centers around ‘native tokens’ which are green, smart, and efficient
* Signum’s leading capabilities can easily be verified with just a few basic calculations
* Given the above, Signum is in a prime position to take the lead in a USD 24 trillion market
About the Author(s)
The lead author of this paper is Benjamin Schroeter, president of the Signum Network Association(SNA), Switzerland. SNA was founded in 2021 as a not for profit organization to pave the way for marketing Signum. Read the latest open letter from the SNA here. Benjamin is a German serial tech entrepreneur and is invested in several European tech and gaming companies.
Multiple people within the inner circle of the Signum opensource project have made invaluable contributions to this paper — thank you all!
Discover Signum
Signum is the world’s first truly sustainable blockchain, featuring world-class applications on a sustainable leading-edge blockchain architecture. Compared to other cryptocurrencies, Signum powers its native cryptocurrency Signa (SIGNA) with a minor fraction of energy use and e-waste. Signum empowers users and developers around the world with innovative blockchain solutions for everyday life.
SNA is a Swiss Not-for-Profit Organization founded in 2021 to provide a solid foundation for Signum to grow and fulfill its vision of sustainability and innovation in blockchain technology.
Find out more at https://signum.network/ or join a Signum channel below.
Get Signa: https://signum.network/exchanges.html
Twitter
Telegram
Discord
Reddit
Youtube
Documentation
Wiki/Community
NFT-Portal
Your
SIGNUM-NETWORK
Flopper1 / Kim Stock
npub1cd…gldur
2024-05-18 22:48:54
Author Public Key
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2024-05-18 22:48:54Event JSON
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"content": "Comparison Ethereum vs. Solana vs. Signum\nGiven the similarity of Signum and Solana in terms of transactional capacity, we will provide a short comparison of these two open source projects. We also include Ethereum for additional context. Due to substantial differences in technical details and capabilities of these blockchains, this overview can only be a starting point for further exploration of Signum’s unique technology.\nBefore jumping into the comparison, a quick note on Signum’s consensus — a high quality feature, given the ubiquitous discussions around sustainability and decentralization in the blockchain world:\nSince it’s inception in 2014, Signum has been green. It’s current version Proof of Commitment (PoC+) uses available disk space in combination with staking. The mining process for PoC+ is so effective and has such low hardware requirements that any consumer-grade PC can be used. The big implication is that basically anyone with a hard drive can join the network. The very low cost of participation invites a large number of validators, which makes for substantial decentralization and high security.\nFor comparison: Solana uses Proof of History (PoH), which needs a hardware setup similar to Ethereum’s. The core problem is that meaningful participation presupposes an investment of several thousand dollars in (specialized) equipment. This of course decreases the group of potential validators significantly and undermines decentralization.\nRemarks on Market Capitalization\nAlthough this paper focuses mainly on technical aspects, it is worth also considering the commercial side — if only to preempt the potential argument ‘If Signum is as great as you say, why is it’s market cap so low?’.\nHere is our thinking on this (which of course is not intended as financial advice whatsoever):\nSolana has been the most recent shooting star when it comes to growing an ecosystem and increasing market cap of its cryptocurrency SOL. Within less than two years, SOL went from around USD 0.60 in early 2020 to it’s peak of USD 259.0 in November 2021, increasing nearly 430x. Like other projects, Solana has benefited from a virtuous cycle in which price increases attract attention and projects, leading another price increase, and so on.\nSignum in contrast has not even really become the new kid on the block yet. Almost no one has ever heard of it. The price of it’s coin SIGNA is therefore still extremely low (but already higher than SOL just 18 months ago, see below). This is because Signum is a complete makeover of a pioneer blockchain. Its underlying technology has proven successful since 2014, but the complete technological overhaul and re-branding have only just been completed very recently.\nThere are many reasons why Signum might see a dynamic similar to Solana’s, the most important of which are as follows:\n* \t\tSignum has a sophisticated technology which offers a unique platform for a tokenized world. As argued in this paper, Signum has developed cutting edge solutions to significant technical problems. A comprehensive discussion of all of Signum’s capabilities is beyond the scope of this paper; please visit Signum’s website to learn more.\n* \t\tAlmost nobody in the blockchain space has taken note of Signum/Signa yet. As a direct consequence, there are only a very small number of projects running on the chain — and therefore very little demand for Signa from the developer and investor community. However, that could change overnight once Signum installs professional marketing and PR capacities. And as with Solana, this push in public awareness will most likely start a virtuous cycle that will be reflected in the price of Signa.\n* \t\tSignum is pursuing the strategy of becoming a major building block in a multi-blockchain world. Connectivity will therefore always be a major element of the product roadmap. This ecosystem strategy will lead to the integration of Signum into many existing projects around the world — no need to start from zero ourselves.\nFrom an investor’s perspective, the above leads to the following line of thought: As this project is not yet widely known, none of its future potential is currently priced into SIGNA. And considering that Solana went from a market cap of 4 million USD (May 2020) to 75 billion USD (November 2021) within 18 months (!), there seems to be a lot of potential for Signum/Signa.\nToday, Signum/Signa has a market cap of around 10 million USD, which is 2x that of Solana just 18 months ago. If Signum now becomes more and more visible to the world, Signa might see a massive value increase as well. If Signum shows just 20% of the dynamic that Solana experienced, Signa’s market cap could go from 10 million USD to 1.2 billion USD (120x compared to Solana’s 430x).\nSo the short answer to our initial question ‘If Signum is as great as stated, why is it’s market cap so low?’ might simply be ‘Because nobody knows about it yet’.\nSummary\nIn this paper, we exhibit our calculations concerning the behavior of ‘big blockchain’ once tokenization becomes mainstream and the number of associated transactions increase to multiples of today’s levels. The core findings are\n* \t\tToday’s big blockchains were not built to run transaction tokens at scale\n* \t\tWe expect these blockchains to crash as soon as large amounts tokens are deployed\n* \t\tSignum’s technology overcomes the shortcomings of the established blockchains\n* \t\tSignum’s approach centers around ‘native tokens’ which are green, smart, and efficient\n* \t\tSignum’s leading capabilities can easily be verified with just a few basic calculations\n* \t\tGiven the above, Signum is in a prime position to take the lead in a USD 24 trillion market\nAbout the Author(s)\u2028The lead author of this paper is Benjamin Schroeter, president of the Signum Network Association(SNA), Switzerland. SNA was founded in 2021 as a not for profit organization to pave the way for marketing Signum. Read the latest open letter from the SNA here. Benjamin is a German serial tech entrepreneur and is invested in several European tech and gaming companies.\nMultiple people within the inner circle of the Signum opensource project have made invaluable contributions to this paper — thank you all!\nDiscover Signum\nSignum is the world’s first truly sustainable blockchain, featuring world-class applications on a sustainable leading-edge blockchain architecture. Compared to other cryptocurrencies, Signum powers its native cryptocurrency Signa (SIGNA) with a minor fraction of energy use and e-waste. Signum empowers users and developers around the world with innovative blockchain solutions for everyday life.\nSNA is a Swiss Not-for-Profit Organization founded in 2021 to provide a solid foundation for Signum to grow and fulfill its vision of sustainability and innovation in blockchain technology.\nFind out more at https://signum.network/ or join a Signum channel below.\u2028Get Signa: https://signum.network/exchanges.html\nTwitter\u2028Telegram\u2028Discord\u2028Reddit\u2028Youtube\nDocumentation\u2028Wiki/Community\nNFT-Portal\nYour\u2028SIGNUM-NETWORK",
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