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Ethereum and Solana — programmable money platforms

Video · 3 min.
Ethereum and Solana: programmable money

Bitcoin is like a banknote, while Ethereum and Solana are like a card that follows rules. Ian lends to Andrew, and a smart contract moves $100 of his collateral to Ian if he doesn't repay in 10 days. We compare Ethereum and Solana, look at the one mistake that is easy to avoid (the wrong network address) and explain Layer 2.

Narrated, with light music
The full lesson with numbers and rules is below.
Watch on YouTube

How are they different from Bitcoin?

Bitcoin = money. You can send it, receive it, hold it. That's it.

Ethereum/Solana = platforms that run smart contracts — programs that automatically execute transactions according to rules. DeFi (lending, LP, options) only works on smart contract platforms.

A smart contract example

The "Kamino" smart contract:

IF a user deposits $100 worth of SOL as collateral,
THEN allow them to borrow up to 50 USDC.

IF the user's SOL price drops below the threshold,
THEN automatically sell part of the SOL to cover the debt.

All of this happens without a bank, without any human involvement — the code executes automatically.

Bitcoin vs Ethereum vs Solana — a comparison

AspectBitcoinEthereumSolana
Launched200920152020
Smart contracts?Basic onlyFull (Solidity)Full (Rust)
Block time10 min12 sec0.4 sec
TPS (transactions/sec)7303,000+
Fee~$0.50–2~$0.01–0.30~$0.001–0.01
EnergyHigh (PoW)Low (PoS)Low (PoS)
Use caseStore of valueDeFi, NFTs, ICOsDeFi, gaming

Our strategy uses two networks — Ethereum and Solana. Here's the key difference:

Ethereum• ~12 sec / block• Fee ~$0.01–0.30• Oldest DeFi network (2015)• Aave, UniswapVSSolana• ~0.4 sec / block• Fee ~$0.001–0.01• Fastest (2020)• Kamino, Orca, Meteora

Ethereum — the king of DeFi networks

ETH

Advantages

Drawbacks

In our strategy

Solana — fast and cheap

SOL

Advantages

Drawbacks

In our strategy

Layer 2 — Ethereum's "flyover"

What is an L2?

After the 2024 "Dencun" upgrade, Ethereum mainnet fees are low during quiet periods (a few cents), but they move with network load and can jump many times over during peaks. Layer 2 networks smooth out that swing:

  1. They batch thousands of transactions off-chain (outside the main network)
  2. Bundle them into one large "rollup" (a summarized batch of transactions)
  3. Periodically post the result to Ethereum mainnet (for security)
  4. For the user: the fee stays small and stable (usually under $0.01) even when mainnet is congested

Main L2s

NetworkGas priceUsed for
Arbitrum<$0.01 (DeFi ~$0.01–0.05)Aave, Uniswap V3 (DeFi TVL ~$1.4bn, 2026-09)
Optimism<$0.01 (DeFi ~$0.01–0.05)Aave, Uniswap V3
Base (Coinbase)<$0.01The largest L2 by DeFi TVL (~$5.6bn, 2026-09)
zkSync<$0.01ZK-rollup

Our recommendation (2026-09): for the Ethereum strategy, use Base or Arbitrum. Base's DeFi TVL is ~$5.6bn and Arbitrum's ~$1.4bn (−52% over 2026), so today the deeper liquidity is on Base.

And note this: after the December 2025 "Fusaka" upgrade, Ethereum L1 gas sits around ~0.05 gwei and a swap on mainnet itself costs about $0.04. That means you now choose an L2 for its applications and liquidity, not for price alone. These numbers move — check defillama.com/chains and etherscan.io/gastracker.

How to tell networks apart — and send with confidence

Every network has its own address format — and that works in your favor, because you can spot it at a glance:

Bitcoin:           bc1qxy2kgdygjrsqtzq2n0yrf2493p83kkfjhx0wlh
Solana:            7Xm2bNJk...K9pQ3Lq
Ethereum mainnet:  0x742d35Cc...a4f
Arbitrum:          0x742d35Cc...a4f (SAME format, BUT a different network!)

Three cases worth knowing — each with a simple fix:

  • BTC → SOL address (different formats) → check the start of the address: bc1... vs 7Xm... are obviously different
  • SOL → ETH address (different formats) → same idea — you won't confuse 7Xm... with 0x...
  • ETH (mainnet) → Arbitrum (same format, different network) → you pick the network in the sending form; read which one is selected before confirming

One habit covers all three: (1) the address format matches the network, (2) the correct network is selected in the sending form, (3) you send a small test amount ($5–10) the first time. Once this becomes automatic, you make transfers without a moment's hesitation.

Which network is right for you?

ScenarioRecommendation
BeginnerSolana — cheap, simple
Larger amounts (>$50k)Ethereum — security, liquidity
Active tradingSolana — fast, cheap
Long-term holdBitcoin + either
LP feesSolana (Orca) or Ethereum L2 (Uniswap)

Summary

Once you understand how these networks differ and how they work, you can judge any DeFi offer yourself — starting by asking which network it runs on, and what that means for cost and speed.

Quick check
How do Ethereum and Solana differ from Bitcoin?
Practice task
0 / 5
Compare Ethereum and Solana fees live

In the lesson you saw a table of fees. Now check them yourself in real time on both networks — it takes about 5 minutes, nothing to buy.

This is learning, not investing — use only small amounts you treat as tuition.

You just checked both networks' fees yourself in live block explorers — that's a skill most people never bother to pick up.

Bitcoin — digital goldBlockchains and networks
Mark as read

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Free material is easy to put off

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This is not a price, a subscription, or a fee for access. The amount is yours to choose, and paying nothing is entirely fine.

Solana address

CUj6wYQLSBxidzm7Lqtkxbw2d8Sv2H2tbJELyAjR756M

Solana network only

Send SOL or SPL tokens (e.g. USDC) only on the Solana network. Sending from an exchange over a different network loses the funds permanently — nobody can recover them.

What you get for it

Nothing extra, and that is deliberate. Every lesson, all three difficulty levels and every calculator stay free and sign-up-free, with or without a donation. There is no gated section, no share of profits, no future token and no claim on anything.

Where the money goes

A donation becomes my own money. I use it to keep the site running and to fund a public demonstration position on a lending protocol — real money, so the lessons have something to show instead of only theory. I publish the results, losses included, publicly and free for everyone. It is my position and my risk, not a pooled fund.

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