What is Solana?
Solana or SOL is a blockchain-based platform, created to achieve fast transactions and low gas fees. Similar to Ethereum, Solana is a decentralized blockchain, as well as a host for crypto apps, for example Degenerate Apes Academy NFT which is actually the first major NFT project on the Solana blockchain.
Solana is referred to as ‘Ethereum Killer’, for the fast transaction speed it can provide. For the record, Solana is able to achieve over 50,000 transactions per second, and Ethereum can process only about 15 transactions per second.
As you can see, Solana shows fast performance, low costs, and network stability, and those are the reasons for developers and financial institutions to hope that Solana will become the Visa of the cryptocurrency world.
SOL is the native cryptocurrency of Solana. It is utilized primarily for transaction and staking fees on the Solana Blockchain. Moreover, Solana holders have voting rights for any future changes and developments on the platform.
What are the best features of Solana?
Open-source code - like many other blockchain projects, Solana has an open-source application so that anyone can download and use it.
SOL - as we already mentioned, Solana has a native currency, SOL. SOLs are available in small denominations called Lamports.
Proof of Stake - Solana uses the Proof of Stake protocol, which means it allows users to stake SOL coins similarly to the Ethereum-like blockchains.
Proof of history - this core innovation of Solana is a consensus method that takes the time of the transaction and merges it with PoS to proceed with the transaction.
Solana use-cases
Solana is a home for some projects, taking advantage of the scalability and flexibility. Furthermore, developers continue finding new interesting and innovative ways to use the blockchain, for example:
Decentralized financial institutions
Decentralized financial institutions or DeFi provide a consolidated range of online financial services, without the need of banks. DeFis include exchanges, digital wallets or any automated financial contract systems.
NFT apps and marketplaces
Solana has also been used for the creation of NFT apps, allowing users to mint and trade digital arts. Metaplex and Solanart are examples of Solana marketplaces.
Web3 Apps
An interesting development in the Solana blockchain includes apps, taking advantage of newest technologies, such as Web3. These are decentralized applications, which means they are stable and open for everyone. Examples for such apps are Audius, Squads and Alchemy.
Solana price prediction
At the timet of writing, SOL has a price of $30.96. According to specialists, Solana has all it needs to become a blockchain revolution. Its upgrades will make it more developer-friendly, and at the same time it will continue being private and resilient.
Price prediction for Solana looks bright, as specialists consider it will reach a price of $213.55, and according to other it will even reach a price of $421 by the end of 2025.
Of course, there are also some less optimistic predictions, saying that it will reach about $135.
Should we invest in Solana?
Solana has definitely had a good run since its launch. As we already said, it offers low transaction costs, and fast transaction speed. It also has some interesting use cases, making it seem like a great investment. Of course, as any other cryptocurrency, its price is highly volatile, so it can bring great profits, as well as big losses.
However, the only investment advice we can give you here is never to invest more than you are willing to lose, and always do good research before making any kind of investment!
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