Solana (SOL) is a web-scale blockchain, providing fast, secure and scalable decentralized apps and marketplaces. The system supports around 50,000 transactions per second. The goal of Solana is to demonstrate that there is a set of software algorithms using the combination to create a blockchain.
History of Solana
The Solana platform was announced in 2017 by Anatoly Yakovenko. With his wide range of experience with compression algorithms, he managed to create a new process of dealing with traditional throughput problems, existing in the Bitcoin and Ethereum blockchains.
Together with Eric Williams and Greg Fitzgerald, Yakovenko was hoping to create a trustless protocol, allowing more scalability. The impact of Solana, brought the attention of investors such as Multicoin Capital, Foundation Capital, SLOW Capital and many others.
Solana as a future investment
Everybody is talking about Solana and there may be a good reason for that.
Since the beginning of 2021, Solana’s price has grown 13,300 %. While at the start of the year it cost $1.51, today it is worth more than $200. It has a market cap of more than $67 billion and is at the top ten of cryptocurrencies. Solana is available in most exchanges and investors are holding up to it to contribute to network security.
One of the main reasons for Solana to be so popular among investors is that they are looking for alternatives to Ethereum. It is the second largest cryptocurrency and was the first to introduce smart contracts. As the Ethereum network is heavily congested, transactions become more expensive and new platforms arrive. They are faster and less expensive and managed to steal the spotlight.
Well, Solana is not as tested as Ethereum is, so before you consider buying it, you must have a look at the competitive environment.
As we already mentioned, Solana can process over 50,000 transactions per second, which makes it one of the fastest cryptocurrencies on the block. Ethereum, for example, can process between 15 and 45 transactions per second.
One of the biggest advantages of cryptocurrencies is that they take the middleman out of transactions. Digital currencies, such as Bitcoin, do not need the backing of a bank or government.
With that comes the need of finding another method of keeping blockchains secure. Bitcoin uses a proof-of-work validation model, which uses a series of network validators to contribute computing power. While it is secure, it is definitely not energy efficient.
Another used model is the proof-of-stake, which restricts the number of validators.
Solana uses the proof-of-history validation model, which is the reason for its quick transactions.
Solana has more than 300 projects running in its ecosystem, including decentralized finance applications, offering free banking services, NFT projects, gaming apps and many others.
With the DeFi and NFT growth, it is not a surprise why Solana is so popular right now.
We always talk about the risks that hide in every cryptocurrency investment. Solana is not an exception. Its price can go up and down, just like any other cryptocurrency, so you should never invest more than you are ready to lose.
We really believe in the future of cryptocurrencies, and this is why we created an automated platform for crypto arbitrage. We are here to help you achieve your goals and make the best out of every opportunity. Trust us, and we will do the hard work for you.