Australian renewable energy trading platform Power Ledger has announced its migration from Ethereum to Solana, favouring the latter’s higher throughput and speed.
Power Ledger will migrate its Powerledger Energy Blockchain to Solana, benefiting from its PoH (Proof of History) consensus, allowing greater scalability and better overall performance than the traditional Proof of Work mechanism.
The Power Ledger technology stack was originally built on a low-power POS consortium chain called EcoChain in 2016 before transitioning to a modified fee-less Proof-of-Authority Ethereum consortium chain in 2017. That served its purpose in the short term but the limitations of this solution were always very apparent, including low transactions per minute.
John Bulich, co-founder, Power Ledger
However, the company isn’t terminating its relationship with Ethereum. The platform is moving its blockchain to Solana and staking will happen there, but POWR (Power Ledger’s utility token) will continue to use the ERC20 standard.
POS will occur on our Powerledger Energy Blockchain but will be linked to our existing POWR (ERC20) token, which remains on Ethereum mainnet, with both the stake and rewards convertible and payable in existing POWR tokens.
John Bulich
Solana is Gaining Traction in the DeFi Market
Solana’s high throughput, speed, and innovative technology have caught the attention of the DeFi market, putting pressure on Ethereum to meet investors’ demand for higher scalability and speed as adoption increased.
As reported last month, Solana received a funding injection of US$300-450 million to challenge Ethereum. Meanwhile, Ethereum developers are working in ETH 2.0 in a major protocol upgrade that will improve transaction time, scalability, and shift from Proof of Work to Proof of Stake.
Solana on the other hand has Proof of History – a consensus mechanism introduced by CEO Anatoly Yakovenko as an alternative to Proof of Stake and Proof of Work. PoH can be defined as a cryptographic clock that puts a timestamp on every transaction to prove it occurred on the network within a given period.
Last year, Power Ledger successfully completed a trial with US wholesale electricity provider American PowerNet.
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