Power Ledger migrates from Ethereum blockchain to Solana despite upgrades

Power Ledger migrates from Ethereum blockchain to Solana despite upgrades
Updated: 30 Sep, 2021
2 mins read

Australian energy trading technology company Power Ledger (POWR) is ditching the Ethereum (ETH) network for Solana (SOL) to support its blockchain, the Powerledger Energy Blockchain. 

In a press release, Power Ledger stated that the Solana network is much faster and supports a higher transaction throughput.

The Power Ledger decision comes even as the Ethereum blockchain undergoes improvements to make the network better. The Power Ledger blockchain offers a platform for auditing and streamlining the buying and selling of renewable energy. 

Power Ledger acknowledged it was attracted to Solana’s means of achieving scalability through POH as a timing mechanism that in return supports short block times of 400 milliseconds. It results in a  fast throughput of over 50,000 transactions per second without any layer two or sharding. 

Furthermore, Power Ledger notes that Solana does not use proof-of-stake (PoS) consensus mechanisms. This feature makes it a less energy-intensive network than proof-of-work (PoW) blockchains like Ethereum. Interestingly, Ethereum is also planning to shift to PoS.

Despite the announced migration, Power Ledger does not plan to sever all the relationships with Ethereum. 

“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,” said Power Ledger co-founder John Bulich. 

The company added that staking would be available to all POWR holders. At the same time, the company is looking for expressions of interest for validators who can support the Powerledger Energy Blockchain. 

Ethereum network upgrades

Ethereum has lined up a series of network upgrades that will make the blockchain better. The next major upgrade is dubbed London, set for August. The upgrade will offer EIP-1559 that seeks to improve the network’s monetary system.

Additionally, Ethereum developers are already on course to initiate the next blockchain version that will introduce the PoS mechanism to resolve scalability and high-fee issues. 

In recent months, Ethereum has received competition from blockchains such as Solana and Binance Smart Chain. The network’s high fees and scalability issues have been cited as significant pain points.

What we like:

Highly credible broker

Perfect for beginners

Protected by insurance

80+ cryptocurrencies to invest

Latest News

Join us on Twitter or Telegram

Or follow us on Flipboard Flipboard

Like the article? Vote up or share on your social media

Recommended content

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s

Justinas Baltrusaitis

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.