Solana is being talked about everywhere within the crypto community because of its recent price jump. Since the start of August 2021, Solana has jumped over 100 percent.
On August 18, Solana hit its all-time high to about $80.12 which made most people question what Solana is so they can make better investment decisions. The price has since come down some, but there may yet be some runway left. It’s currently at $72.27 and up over 1,000 percent in the last 12 months, according to data from Coinbase.
What exactly is Solana?
Solana is known to be an open-source blockchain-led protocol. The purpose of Solana’s protocol is to support the developers along with different institutions around the world who are aiming for decentralized applications or DApps.
Solana’s protocol is the reason why it’s highly fast, secure, and most of all a coin that is censorship-resistant adding to more of its flexibility that helps for an open infrastructure with the help of which applications can be built for mass adoption(s).
Solana leverages all this through a set of breakthrough computational technological advantages that helps to support thousands of nodes. Similar to that in the case of Polygon (MATIC), Solana also uses proof of stake (or PoS) along with proof of history (or PoH) mechanisms that allow for better scalability.
How fast is Solana?
Solana is amongst the fastest cryptocurrencies which are present right now in the market. Its average cost per transaction is $0.00025 and can process 50,000 transactions per second (TPS). In the coming years, the developer team of Solana has promised to increase the current TPS rate to about 700,000 TPS depending on how much their network grows.
Why is this a big deal? To put it in context, Ethereum can process about 15 to 55 TPS. Visa, on the other hand, can process 24,000 TPS. The higher the number of TPS, the better the chances of cryptocurrencies becoming more adaptive – as the number of users increases, the more need for higher TPS.
Solana’s white paper was published in the year 2017 by its founder Anatoly Yakovenko who had previous experience working at Qualcomm as well as Dropbox. His past work experience was to help design distributed systems and their compression algorithms.
He further teamed up with his former colleague, Greg Fitzgerald. Together, the pair both developed Solana and released it in February 2018. Initially, the company was known as Loom. However, rebranding was done to avoid confusion between the two, and thus the company was named Solana Labs.
Important features of Solana
Solana has eight core features, which are as follows:
- Proof of History or PoH
- Tower BFT (Byzantine fault tolerance)
- Gulf stream
- Turbine (a block propagation protocol)
- Archivers (a distributed ledger storage)
Future of Solana
Solana (SOL) like other cryptocurrencies faces one of the more important challenges which is its practical implementation or adoption. While Ethereum is slow unlike other cryptocurrencies, different developers are likely into the adaptation to Ethereum. This can also be attributed to the first-mover advantage for Ethereum.
However, cryptocurrency has a lot of potential and a big way to move forward. Coins like Solana should ensure there are more advantages for crypto adaptation than there are disadvantages.
This article is for informational and entertainment purposes only. It is not financial advice. Cryptocurrencies are high-risk and volatile investments. Consult a financial advisor and tax professional before trading.