What is Solana – Introduction
Solana (SOL) is a cryptocurrency that has stood out in the cryptocurrency market. Currently, a SOL unit price equals to US$130, this amount has left several investors more excited and interested in the crypto market.
However, it’s not just SOL price that makes this crypto interesting for investors. Its project brings breakthrough purpose for the crypto market. Solana offers freedom and independence to its users.
Digital currency market is always evolving. If you’re an investor, it’s crucial that you know every single new development. That’s why we’ll help you understand everything regarding SOL, for instance: what is its purpose? What are its major advantages and differences when compared to other cryptocurrencies? Let’s dive in!
What is Solana?
Solana is an open source blockchain crypto that uses several new technologies to create a decentralized market platform to make scalable and fast applications – decentralized apps (dApps).
Solana platform is one of many platforms that have stood out in the DeFis (Decentralized Finance) market due to its purpose to achieve greater scalability without compromising the decentralization or safety of the platform. ( Check this guide out if you’d like to learn more about DeFIs)
Unlike ordinary protocols from platforms which use security mechanisms e.g.: Proof of Stake (PoS) or Proof of Work (PoS), SOL uses a Proof of History (PoH) as a mechanism . In practice, the PoH mechanism is mainly responsible for promoting bigger scalability and maintaining greater network security.
We’ll explain to you how Solana project works and more details about it. After that, you’ll really understand how it operates. We’ll introduce you to its history, as well as its goals in the next section.
Solana’s history and goals
In 2017, the developer Anatoly Yakovenko launched the SOL project. In 2017, it’s Whitepaper was released as well to create a system able to improve most popular protocols in other crypto’s blockchains tech. The main purpose news was the PoH mechanism and its way of working.
After a while, the project has Greg Fitzgerald and Eric Williams as investors. They helped launch the first prototype of the platform in 2018. Then, in 2020 during its Initial Coin Offering (ICO), SOL got more than $25 million dollars. Thereafter, the project got another significant investment .
Since its creation, SOL’s major goals have been focused on increasing scalability, usability and promoting a platform for democratic participation and collaboration among its users. Usability in creating dApps is one of the most interesting features for users and developers.
Besides, being an open source platform makes SOL an interesting platform for investors who are looking for assets with the traditional features of the cryptocurrency market, for instance, safety, freedom and decentralization.
Main advantages and applications
Crypto platforms have always had to deal with a dilemma: increasing scalability and speed ended up compromising decentralization. Thus, platforms with greater decentralization tend to have lower possibility of scalability and slow transactions.
Thereby, SOL’s main purpose is to solve this dilemma and manage to maintain a high degree of scalability without compromising transaction speed or platform decentralization.
In addition, there are other several advantages and applications possibilities for SOL. Now, we’ll show you some examples
- Building or processing blocks in the blockchain takes less than one second;
- Cheaper transaction fees;
- Easy-to-use platform for creating dApps;
- Token used to pay for any blockchain transaction or smart contracts. (You don’t know what smart contracts are? Take a look on this article)
- Combination of security mechanisms that use PoS and PoH to increase scalability;
- Creation of the 8 core features that is responsible for providing high safety and makes the platform faster for its users. The 8 cores of the Solana platform represent the only original combination for the digital currencies market.
Solana and NFTs
In the second half of 2021, the SOL platform had an explosion of popularity from the creation of Non-Fungible Tokens (NFTs) in its blockchain. SOL’s blockchain is the most preferred way for launching NFTs and this is connected to its low development and launch cost. To do that, SOL’s blockchain offers a lower cost than other platforms on the market e.g.: Ethereum.
After NFT’s launch implementation, several NFTs projects were launched on the SOL platform. One of the most famous NFTs was the Degenerate Ape Academy, which was sold for over $1 million dollars. (Would you like to know more about blockchains? Click here and read this article )
Best solana wallets
There are several SOL compatible wallets, thus you can manage and make your first SOL purchases. Here are some examples of the options available:
- Exodus wallet: Wallet in desktop and mobile format
- Ledger: Hardware wallet
- Trust wallet: Mobile wallet
- Sollet: Web wallet.
Furthermore, SOL is available for purchase on the most popular exchanges on the market. If you still don’t know how to make your first investments in cryptos, be sure to check out our articles.
What is Solana – Conclusion
In this article, we talk about SOL, one of the most popular currencies in the crypto market. Solana project has taken investors’ attention due to several news brought through its technology. As a reminder, we’ll show you the main points of this article:
- SOL is an open source blockchain in cryptocurrency whose its main goal is to enable greater currency scalability;
- Anatoly Yakovenko developed the platform and, ever since, it has sought to provide maximum scalability without compromising its decentralization;
- SOL is a easy-to-use platform and it has attracted the dApps developers interest;
- One of the main innovations in SOL’s tech is the combination of PoS and PoH security protocols;
- SOL platform offers several advantages, such as: faster transactions, possibility of using tokens as a payment method in any transaction, cheaper transaction fees, creation, launch and NFTs’ sale.
Solana could be a great choice for you if you’re interested in starting in the world of cryptocurrencies. However, you should purchase cryptos when you feel that this type of asset represents you as an investor.
Make sure that you have to think attentively before starting any investing. You must get as much information as possible before making your first purchases. It’s important to be careful before investing – searching for necessary information to help you learn.
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