Solana is a low-fee, high-speed public blockchain designed to overcome the scalability problems of Bitcoin and Ethereum. It currently processes between 1,500 and 3,500 transactions-per-second (TPS) on average, with a maximum of 65,000, while Bitcoin and Ethereum process only 3-7 and 12-16, respectively.
History of Solana
Solana is a blockchain developed by Anatoly Yakovenko and Greg Fitzgerald who previously worked at Qualcomm, a technology company based in California, United States. Anatoly started the project in 2017 and managed to raise $25 million through an ICO. Then, Solana’s official Whitepaper was released in February 2018, followed by several testing phases until it was officially launched in March 2020.
Solana itself is divided into two companies, namely Solana Labs and Foundation. Anatoly and his team lead Solana Labs to develop all facets of Solana’s technology, including the proof-of-history (PoH) system. Meanwhile, Solana Foundation is an organization that deals with fundraising, building external partnerships, and developing the community.
How does Solana work?
Solana achieves its rapid transaction speeds and low fees by combining Proof-Of-Stake with a consensus mechanism known as Proof-Of-History (PoH). In Solana’s PoH model, transactions are time-stamped and cryptographically hashed as they occur on the blockchain, and validators use these hashes to establish the order in which each transaction is confirmed.
- Proof of History (PoH) – This technology allows Solana to record the timing and sequence of transactions more efficiently and accurately. PoH helps reduce latency and speed up transaction processes on the network.
- Tower BFT – Consensus algorithm used by Solana, which combines Proof of History with Proof of Stake (PoS) to reach agreement among validators.
- – A data delivery protocol that efficiently divides and spreads transaction data across the network, enabling high scalability.
- Sealevel – A parallel execution engine for smart contracts that allows Solana to process transactions more quickly and efficiently.
- Gulf Stream – The Gulf Stream Protocol plays an important role driving caching transactions and forwarding them to the edge of the network. This allows validators to pre-execute transactions, reducing confirmation times, faster leader switching, and reducing memory pressure on validators from the pool of unconfirmed transactions. So this protocol is what allows Solana to support 50k TPS.
- Pipelines – Pipelining is a process in which incoming data streams are assigned to different hardware devices that will process the data. So this mechanism allows transaction information to be validated and replicated quickly across all nodes in the network.
- Cloudbreak – Cloudbreak is an optimal data structure for simultaneous reading and writing across a network.
- – Data on Solana is moved from validators to a network of nodes known as Archivers. These nodes are for example laptops and and nodes will be checked frequently, to ensure they are storing the correct data.
What makes Solana unique?
- ???? Low transaction fees and speed: Solana is one of the fastest blockchains in the crypto industry right now, with low transaction fees.
- ?? NFT Ecosystem: Solana has several popular NFT collections followed by a growing community, making it a great place to start collecting NFT.
- ?? Eco-friendly: Solana’s proof-of-stake network makes it more environmentally friendly than most other crypto assets such as Ethereum and Bitcoin.
What is the future of Solana?
True to form, Solana is continuing on its path towards faster transaction speeds, lower fees, and greater accessibility. The non-profit Solana Foundation is rapidly expanding Solana’s developer ecosystem as well. The number of active Solana developers grew by more than 400% from 2020 to 2021, and over 30,000 people have participated in Solana’s hackathons, collectively raising over $500 million in seed funding.
Solana is also going mobile. Currently under development is a Solana PhoneSolana Mobile Stack software development kit (SDK), and Network Upgrades that introduce concepts like fee markets and the QUIC protocol.
Where Can You Buy Solana (SOL)?
SOL tokens can be purchased on most exchanges. One choice to trade Solana is on , as it has the highest SOL/USDT trading volume, $753,103,225 as of September 2021.
, with a trading volume of $343,872,841. Other options to trade Solana include Houbi Global. Of course, it is important to note that investing in cryptocurrency comes with a risk, just like any other investment opportunity.
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