The flame of the popularity of cryptocurrency taking over the world is not in any way dousing, with the emergence of different cryptocurrencies in the crypto space. One of the cryptos raving at the moment is Solana. Solana is still in beta but has gained remarkable momentum as it operates on a blockchain network that can be used to build DeFi applications.
What Is Solana?
Solana can be described as a blockchain network on which cryptocurrencies can be built. Solana is nuanced to Ethereum in terms of its high speed of transactions. It can perform about 50,000 transactions per second, a feature that makes it unique.
However, multiple features can be easily added to the Solana network, be it applications or SOL tokens, which enables its network to perform transactions in microseconds. Often than not, Solana is reputed as “Ethereum’s competitor”.
Considering Solana’s protocol, it is fast, secure, and devoid of censorship of any kind. Similar to the decentralized nature of Bitcoin, Ethereum, and other cryptocurrencies, Solana’s blockchain network offers both proofs of stake and proof of history in its technology framework. The network is built om a RUST programming language that ensures a robust safeguard of transactions.
Features Of Solana
1. Proof of History (PoH)
Most cryptocurrencies, especially Bitcoin and Ethereum’s blockchain on a ” proof of work” approach that allows and restricts entries on its database.
Proof of Work (PoW ) is characterized by the complexity that in turn reduces transaction speed. To remediate this disadvantage introduced the development of the Proof of History approach. With the proof of history, new blocks can be added to the blockchain without mutual agreements.
Every node in Solana has its clock with the ability to make decisions on its own. Proof of History speeds up transactions while keeping an adequate record of transactions.
This is a system that puts “memepool needs” to an abrupt end. Memepool is considered the waiting area, where every unprocessed wait to get processed. As efficient as Solana’s network is, it has the capability of managing a memory pool size of up to a million transactions.
Scalability is another major top point of Solana, which is in line with a horizontal scaling method. Cloudbreak enables the organization of a database that writes and reads transaction input. This feature is also responsible for establishing a linkage between software and hardware.
Blockchain nodes are divided by Solana into smaller packets, to increase transaction speed. These smaller packets of information can be validated at a quicker time, while it allows Solana to resolve bandwidth-related issues.
Multiple smart contracts can easily run at the same time on Solana, such that they save time and make Solana highly effective. “Sealevel” is that technology that allows Solana to run multiple smart contracts at a time.
6. Tower Byzantine Fault Tolerance (BFT) Algorithm
The BFT system takes a semblance of a safety shield for the Solana technology. This prevents the failure of a particular node to affect the overall operation of the ecosystem. This algorithm allows the independent functioning of nodes, irrespective of several failures.
There is a specialized task for every node in Solana’s ecosystem to sure speedy translation processing. Also, different hardware is assigned with input data in the network. Pipelining is the process by which multiple validate the information blocks.
How Solana Works
The operation of Solana is effective with the synergy between the proof of history and proof of stake to speed up transaction processing. The proof of history enables the validation of transactions by communicating with nodes, while proof of stake operates with individuals staking cryptocurrencies for transaction validation.
The proof of history simply works with the assigning of “leader position” to a particular node. This given node is saddled with the responsibility of generating the general proof of history statement. The leader node also arranges other nodes on the blockchain in generating a proof of history statement.
Moreover, the execution of transactions is pushed forth by the leader node, where it subsequently publishes the transactions in the respective final nodes, using “verifier”. Verifiers are known to verify transactions and make transaction copies while publishing them.
As every Solana network has a leader, the verifier node in its regard, is considered smart in its performance, which is head-to-head with the capabilities of thr leader node. So, through proof of stake elections, a verifier node can later be elected as a leader node.
In summary, the combination of proof of history and proof of stake is the best approach for Solana, as it is cost-effective when compared to cryptocurrencies, like Bitcoin and Ethereum’s blockchain network.
What Is Solana (SOL) Token?
Solana SOL is a token being built on Solana’s blockchain network, with about 26 million supply in circulation. As of the time of writing this article the price of Solana (SOL) is $101 at a market cap of about $32 billion.
Solana is a blockchain network that is capable of bringing a significant transformation to the investment approach. It is safe to infer that the future of Solana is bright, owing to the time of DeFi applications and bubbling NFTs.