Solana claims to be the fastest blockchain and cryptocurrency ecosystem in the world, with over 400 projects spanning DeFi, NFTs, Web3, and more. It is currently theethereum killer most likely with a competitive platform and low transaction fees.
Solana (SOL): the essentials to know
1- What is Solana crypto (SOL)?
- Basic principle : The Solana platform is a decentralized computer network that uses blockchain to operate. It was created by Anatoly Yakovenko. Like Ethereum, Solana makes it possible to create decriminalized applications (DApp) and the blockchain has attracted hundreds of project leaders who have chosen it to the detriment of Ethereum.
- Use : Solana is a cryptocurrency that can be sent, received and transferred in exchange for goods and services through a digital wallet. Its blockchain is multifunctional: Smart contracts, NFT (non-fungible tokens), Decentralized finance (DeFi), .DApp development. Solana’s blockchain not only uses proof-of-stake consensus to secure transactions, but it also timestamps them, removing the possibility of fraud within the ecosystem (proof of history).
2- The project and the blockchain behind Solana in brief
- Project : Solana is currently the best positioned blockchain to compete with Ethereum. It is faster with up to 50,000 transactions per second against only 15 for Ethereum. Its fees are considerably more competitive. It is the best alternative to Ethereum.
- blockchain : The network has 200 physically separate nodes supporting over 50,000 TPS throughput when run with GPUs. One of the biggest challenges with distributed systems is timing. Unlike Bitcoin which uses the PoW algorithm as a decentralized clock for the system, Solana uses a proof-of-history method. With historical evidence, you can create historical records that prove that an event happened at a specific point in time.
3- Analysis and opinion on the Solana (SOL)
- Solana can process 50,000 transactions per second with exceptionally low fees (less than $0.01).
- Solana has achieved high levels of scalability by leveraging historical evidence and several other breakthrough innovations.
- With billions of users on board, Solana has achieved economies of scale and kept application fees extremely low.
- Solana provides composability across projects. Users do not need to manage multiple shards or Layer 2 systems.
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The – :
- Many implementations are still awaiting launch on the Mainnet Beta.
- A satisfactory hardware configuration for Solana is relatively more expensive.
- Solana has been criticized for not being decentralized enough.
4- How to earn or mine Solana (SOL)?
Solana cannot be mined, no matter how powerful your gear or how deep your pockets are.
However, Solana offers two key ways to help the network in exchange for rewards:
- Staking, where you can block Solanas you already own with a validator to earn rewards. Much like a bank pays interest on your deposits – in exchange for using your savings to fund mortgages and other investments – a Solana network validator will pay your rewards of around 8% for allowing your coins to be used. be staked to help confirm transactions on the network.
- The validation, where you run a very powerful server in a data center that works to confirm transactions on the Solana network. As a validator, you can earn a commission on any rewards generated by people who “stack” their tokens with you, but the start-up costs can be prohibitive for many.