Solana is a cryptocurrency that was rolled out in 2020 to very little fanfare but is now on an upward trend. It is essentially a blockchain system for a host of applications and an open-source project involving collaboration between Geneva’s Solana Foundation and San Francisco’s Solana Labs.
The cryptocurrency has been likened to Cardano and Ethereum. However, unlike Ethereum, also a platform for decentralized applications, it is founded on proof of stake and proof of history technologies, which make it friendlier than proof of work platforms such as Bitcoin.
It promises low-cost transactions and faster processing time.
What does Solana do?
The coin is a general-purpose cryptocurrency, as is Ethereum, and has robust technological underpinning allowing developers to code through Rust rather than Vyper or Solidity. Its end users as at now include non-fungible tokens, decentralized finance, games and marketplaces.
Its biggest selling point is scalability.
It can handle over 700000 transactions each second. As such, it is quite appealing to high level traders. A success case that is thriving on Decentralized finance is Serum, the platform built by the people who developed FTX.
Why is Solana better than other blockchains and coins?
Admittedly, Solana sounds a lot like Ethereum, and can be thought of as an advanced competitor of the coin. Ethereum has many ore apps that Solana, so why would anyone switch? Well, for starters, the fees on Ethereum are ridiculously high, and can rise to hundreds of dollars when there is network congestion. Solana offers a huge throughput, theoretically. It can handle very many transactions each second that its rival. It fees are also quite low, in the range of 0.000005 SOLs, equivalent to $0.001.
What is proof of history technology and why is it important?
The technology, proof of history, is the most current way for a computer to establish the building blocks of blockchain. Presently, computers rely on proof of stake and proof of work to create blockchains, but these have biases and tend to favor those with big stakes. This way, not everyone will be using a lot of energy to solve crypto puzzles that determine when the next chain is loaded.
Both systems rely heavily of communication between different computers, and that is takes up a lot of time. Proof of history saves a lot of time because it works based on timestamps to inform users what is happening. This also translates to increased speed of transactions. Solana is able to create a block in under 400 milliseconds, whereas Ethereum takes about 10 seconds and Bitcoin 10 minutes.
How much has Solana grown?
In 2020, the coin was worth a mere £1.70. Today, it is worth about £200. A year ago, 10 coins would cost about £17, which would translate to £1040 today, a significant increase in value in just 12 months.
Solana is also the 5th valuable coin on the market today. Few people know about Solana, so it has room to grow even though its value is somewhat less than that of bitcoin (£46250.25) and Ethereum (£3378.20). but it not given that it will rise, supply and demand will take care of that side of things, one can only hope.
Where can I buy Solana?
Once you are certain that you want to invest in this cryptocurrency, it is easily available. You can buy tokens on Kraken, Binance, Coinbase and various other platforms.