One of the most prosperous blockchains of 2021 is Solana. The value of SOL, the blockchain's native currency, has recently declined due to the recent market downturn and the greatest FTX crisis in 2022. However, this does not imply that we ignore the benefits of using this blockchain, and Ethereum, the dominant player in the present DeFi crypto business, faces stiff competition from it.
Solana (SOL): What Is It?
A blockchain platform called Solana is designed to run scalable, decentralized apps. It was started in 2017 and is an open-source project that is now run by the Solana Foundation in Geneva. The blockchain was created by Solana Labs, based in San Francisco.
Solana handles transactions substantially faster and levies noticeably reduced transaction costs when compared to other blockchains like Ethereum. The blockchain is frequently referred to as a "Ethereum killer" since it is a quickly growing blockchain that remarkably resembles Ethereum.
The blockchain of Solana makes use of the proof-of-history consensus algorithm. This algorithm determines the blockchain's next block based on timestamps.
In contrast to proof of labor, which utilizes the miners themselves to determine the next block in a chain, and proof of stake, which uses staked tokens to determine the next block, proof-of-history uses timestamps to define blocks for the chain.
Blockchain validators can vote on the timestamps of different blocks in the chain thanks to this innovative technique. This allows for quicker, more secure computations while while maintaining the decentralization of the chain.
In 2021, the blockchain-based SOL token experienced a growth of over 12,000% and achieved a peak market worth of over $66 billion, making it the fifth-largest cryptocurrency at the moment.
Despite its notoriety, SOL did not escape the 2022 cryptocurrency slaughter. SOL was the token that suffered the most, especially at the height of the FTX-caused crisis towards the end of 2022.
Similar to Ethereum, the SOL token may be purchased on the biggest exchanges. The true value of the token is found in transactions on the Solana network, which provides unique advantages.
What Possibilities And Advantages Does Solana Offer?
Technically
Solana is one of the most powerful Layer 1s in the world and a blockchain that provides a range of innovative solutions. The group has put forth several innovative ideas, each with applications in security, bandwidth, and decentralization. The blockchain performs better than Ethereum for the reasons listed below:
- has no state in any of its programs. Ethereum is slower because it stores state.
- Instead than relying on block height, has on-chain clock checking for verified timestamps.
- Transactions are broadcast without needing to wait for international agreement or compromising security.
- lowers memory requirements by shrinking data packets and sending them over UDP.
- by sending pending validators' unconfirmed transactions, it eliminates the mempool.
Despite its frequent outgate issues, Solana can be viewed as a better version of Ethereum that does not require the more modern Sharding technology. Right now, Solana is open for business, so take advantage of it! Anyone can build on it because it is a permissionless network without any of Ethereum's bottlenecks.
Speed of transactions
One of the quickest blockchains currently in use. Blockchains' capacity to complete transactions quickly is essential as more and more users adopt them widely.
"Stuck" or pending transactions that take minutes or hours to confirm lead to a bad user experience. As of this writing, Solana can carry out up to 3,500 transactions per second (TPS). The TPS might theoretically rise greatly in the future.
Low petrol costs
Some experts believe that for blockchain technology to become widely used, adoption costs must be lower than they currently are. For that situation, Solana is in a favorable position.
As opposed to other well-known chains, today's transactions usually cost pennies or less, which is great news for developers building applications that require cheap transactions.
Smart contract capabilities
One of the main elements influencing the platform's appeal among developers is the numerous unique and cutting-edge capabilities of Solana's smart contracts. The speed of blockchain engineering from Sealevel to Tower BFT is accelerated by the blockchain.
Rust, C, and C++, three popular programming languages that improve platform usability, are used to create its smart contracts.
Solana also does an outstanding job of providing clear instructions for people who wish to get started.
NFTs Have a Bright Future
The Solana blockchain is also a pioneer in non-fungible token transfers. The blockchain serves as the host for a number of NFT marketplaces, including Metaplex, Solanart, and the well-known Magic Eden. NFT traders are drawn to the blockchain's versatility and affordable fees, and it is posing a threat to Ethereum in the NFT transaction industry.
The potentially useful network
The community of programmers and entrepreneurs who support a given blockchain's long-term objectives will be crucial to that blockchain's acceptance and success. Solana is a blockchain to watch due to the incredible talent that is emerging inside the ecosystem.
Numerous amazing initiatives, such the NFT platform Magic Eden, the Cardinal Protocol, Orca, and Brave, use this network.
Undoubtedly, a growing number of developers and businesses will leverage the network's amazing platform and community to build the Web3 of the future.
Ethereum vs. Solana
While Solana and Ethereum have some things in common, they also differ significantly. The regions where the two platforms diverge and overlap are listed succinctly below:
Future plans for Solana Network
Both Solana and other blockchains are not flawless. It can initially be a little challenging for developers to use, despite having a superb staff, community, and propensity for innovation.
Furthermore, because it is a relatively new blockchain, it is still being "battered tested" in comparison to more established, older blockchains like Bitcoin and Ethereum.
Furthermore, Solana has occasionally struggled to manage excessive levels of usage. The Solana community's innovation over the past year has resulted in several adjustments that have addressed outages and are continuously tackling the problem, but it is still uncertain how it will fare with "mainstream adoption".
Conclusion
Solana has one of the fastest blockchains currently available, and as technology advances, it has a bright future. The popularity of Solana, the 12th-largest cryptocurrency by market cap, is growing. It saw a large rise in 2021 but, like the rest of the market, a drop in 2022.
The community is aware of the low gas prices and speedy transaction times made possible by the blockchain, but there are other, less well-known features that we think really contribute to making Solstarter the platform of choice for upcoming projects seeking funding.
