Anika Begay
Solana, a public blockchain known for its high transaction speeds, is under scrutiny again. After reliability challenges in recent years, analysts are now highlighting another concern.
Solana faces new challenges in transaction processing
Going to X, a user he said The network has alarming transaction failure rates. This performance issue, the analyst added, tends to significantly impact user experience, watering down the network’s benefits, which are primarily centered on low gas fees and high scalability.
Transaction data sharing from Jupiter, a DEX aggregator on Solana, paints a troubling picture. Every 24 hours, the analyst noted, only 35% of all published transactions are executed. That means the majority, about 65%, are not processed.
The analyst further explained that the situation is even more serious, as analyzed in the last month. On some days, the analyst noted that the transaction failure rate could exceed 80%. At this rate, and on those days, only two out of ten transactions published on Solana are confirmed.
The low transaction success rate comes despite Solana supporters pointing out its high transaction processing speed, which is far better than Ethereum and Bitcoin. If the success rate is anything to go by, the analyst said this statistic could be misleading because it counts all failed transactions.
For this reason, the higher TPS is false and does nothing but inflate Solana’s on-chain performance. This position is due to the fact that Solana, in light of the high failure rate, considers failed transactions as successes, creating a false image of the platform’s capabilities.
Every time transactions fail, the user experience is negatively affected, as users have to pay fees for every transaction recorded. In essence, this means that Solana penalizes users for using the network.
Will affected financial institutions, like Visa, back down?
The situation is made worse because Solana attracts bots that flood the network with low-cost transactions. This results in a high failure rate for regular users who fail to optimize their gas fees accordingly by paying more.
The analyst added that Solana’s high transaction failure rate could even cause major financial institutions, such as Visa, to reevaluate their decision. If they choose to implement Solana, users accustomed to the reliability and high processing speeds of traditional payment systems may be hesitant to adopt the technology.
While the high failure rate indicates high demand, Solana is plagued by other problems. The Solana Foundation recently banned over 30 validators from its grant program, accusing them of enabling Miner Extractable Value (MEV) bots.
Feature image from Canva, chart from TradingView
