Solana is scoring a high price while it is unclear why the buyers are overlooking its lack of decentralization.

The crypto dilemma which Solana crypto is having is hard to resolve. It is going at break-neck speed to scale up its operations, which is very much necessary, although at the cost of security and decentralization. The publicly auctioned coins account for only 1.3% of the total and even stake rewards are not possible with Solana. Running a node is way costly and most of the validator nodes are run by insiders and early investors. Besides, it has no on-chain governance system and it runs on a delegated proof-of-stake system which leaves little scope for decentralization.

Despite lacking the charm of a decentralized network, it is surging ahead of other major cryptocurrencies by its efficiency. Users do not seem to care about the network architecture as long as it works, except for the breaches that occur now and then. While it is unclear why Solana buyers overlook this factor, there are pretty many good reasons why a centralized network cannot be patronized. First of all, unlike a decentralized network, it has control over its operations, so that it doesn’t go haywire which happens with other networks. Though it sounds against conventional knowledge, a centralized authority may help in seeking more relevant insights to ramp up security. Difficulty in maintenance with the distributed system across the globe and direct threats from centralized authorities are a few other factors that Solana investors may consider.

If the inflationary tendencies are put aside for a while, investing in Solana would be akin to investing in a slick software company as long as the investor has a risk appetite. When investment is synonymous with risk in the crypto market, it is quite evident where Solana is going.

Last week, Solana’s dollar-pegged stable coin CASH has fallen to almost zero from $1. The network was hacked causing an “infinite mint glitch”, enabling attackers to mint tokens without providing collateral. It is not the first time that Solana has proven susceptible to external attacks. It is one of the most notorious crypto networks for vulnerability to cyberattacks. Solana hailed as the ‘Ethereum Killer’, can garner more users because it can function faster than other networks like ETH and Bitcoin. The only concern of the investors has been its centralized network. The fact that almost 45% of Solana’s validators are hosted on just 2 data centers, explains the hold it has on the network.

Despite lacking the charm of a decentralized network, it is surging ahead of other major cryptocurrencies by its efficiency. Users do not seem to care about the network architecture as long as it works, except for the breaches that occur now and then. While it is unclear why Solana buyers overlook this factor, there are pretty many good reasons why a centralized network cannot be patronized. First of all, unlike a decentralized network, it has control over its operations, so that it doesn’t go haywire which happens with other networks. Though it sounds against conventional knowledge, a centralized authority may help in seeking more relevant insights to ramp up security. Difficulty in maintenance with the distributed systems across the globe and direct threats from centralized authorities are a few other factors that Solana investors may consider.