Solana has been a rising main character amongst cryptocurrencies lately. Currently ranked as the 6TH coin by market cap, it quickly managed to rise in the ranks. The swift growth also means that the people onboard the Solana train saw massive profits too. Jumping from $1.50 in January 2021 to $142 as of now October 12, 2021, the fans are basking in the tears of the haters.
In this article, we take a look at how the Solana network managed to achieve success in such short time. Furthermore, we’ll examine the native token SOL for future applications and capabilities. You can also learn how to exchange Solana on HiExchange.
- Solana the Ethereum Killer
- The Impressive Background of Solana
- Pioneering Technology
- The SOL Token
- Where can I Exchange Solana
Solana the Ethereum Killer
The king of the hill can only go down. That is where Ethereum stands, on top of the altcoin hill. And the competitors are closing in. And perhaps amongst competitors like Luna, Avalanche and ADA, Solana was the one to outperform the all.
In short, Solana is a blockchain platform for decentralized applications (DApps). The network utilizes Proof of Stake consensus algorithm. However, in a world full of PoS blockchain networks, Solana has managed to achieve some impressive figures. The network can support up to 50,000 transactions per second (TPS) and requires 400 milliseconds to build a block. With the quickly increasing number of validators currently at 1,061, the network is one of the fastest out there.
However, what good is a fast network if expensive? Well, in terms of transaction fees, the Solana network maintains the most competitive fees across the board. With an average of $0.00025 per transaction, it’s no wonder why many of the largest institutional investors use this network.
This flexible network has smart contract capabilities, DeFi, NFT, Web3 and many more. According to the official website, the ecosystem has currently over 400 running projects.
The Impressive Background of Solana
Found in 2017 by Anatoly Yakovenko, a former Qualcomm member, along with Eric Williams and Greg Fitzgerald, the network aimed to create a more efficient and scalable platform.
The team consists of former members of companies such as Google, Apple, Microsoft, Qualcomm, Dropbox, Intel and more.
In that regard, the network is backed by many years of experience in some of the best companies around the world.
The network famously utilizes 8 core technologies invented by their teams. Each of the eight is exclusive to Solana and is proven to be highly successful.
- Proof of History (PoH) acts as a synchronized clock
- Tower BFT is a consensus algorithm utilizing PoH
- Turbine is a protocol that divides the data into smaller parts so that they reach the nodes easier and faster
- Gulf Stream is a protocol that allows the nodes to execute the transactions ahead of time, increasing the speed
- Sealevel is a processing engine that allows concurrent smart contract running at the same time
- Pipeline distributes transaction data to different hardware therefore a more efficient data processing is achieved
- Cloudbreak is an optimized data structure
- Archivers is the data storage for the network
Generally speaking, the Proof of History, keeps the historical records for all transactions and events. It allows the nodes to go through the records at any time and track them easily. It is a revolutionary step forward for the blockchain technology.
These technologies have proven to be working well together as a cohesive unit. And with that, the network is able to maintain efficiency.
The SOL Token
The SOL is the native token of the Solana network. Currently ranked as the 6th cryptocurrency by market cap, it has skyrocketed in value in very short time.
To justify the massive surge in price, we have to consider two main causes.
First, the institutional investors especially in China utilize the network to cut down the costs. As an Ethereum alternative, the network has much lower transaction fees and much better scalability thanks to the innovative technologies. Hence, massive sums of money flows into the network increasing the value of SOL. Subsequently, the investors see this as an opportunity to make large investments. A win-win case!
Second, the NFT hype has also been responsible for the surge in price. The Solana network has been one of the very first platforms to host NFTs and with the lower gas fees, it is a great platform to build and host NFTs. The network has created their own marketplace.
And as for the ultimate nod to the platform, the investment giant Grayscale has added Solana in the list of their supported assets.
Where Can I Exchange Solana
You can exchange Solana on HiExchange with the best rates at any moment. Considering the innovative technologies, the promising capabilities and the proven success, Solana seems to be one of the better investments. It holds so much potential as a flexible and efficient network and the native token SOL looks great in both technical and fundamental analysis.
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