What Is The Solana Coin Cryptocurrency?

 

You most likely already know that it is extremely important to diversify your assets regardless of if that is in the stock market, forex market, precious metals or crypto markets. I want to talk about another coin that I think shows a lot of promise and I am going to be adding to my own portfolio to hold. Solana (SOL) is a fourth-generation blockchain. It leverages what is an open infrastructure in order to provide greater scalability than a lot of other coins. This network introduces several technologies both new and unique for the purpose of providing users with unmatched transaction speeds as well as enterprise-level security also.  Consequently, the network has seen considerable growth since its introduction in the year 2017.

History of Solana (SOL)

As mentioned, the history of Solana begins in the year 2017. It was at this time that a man named Anatoly Yakovenko founded the project. He quickly partnered with Greg Fitzgerald and Eric Williams in order to accomplish his goal of creating an infinitely scalable blockchain network. Notably, Yakovenko leveraged his past experience as a Dropbox engineer to help Solana achieve its lofty goals. Today, the Solana coin is what as known as an advanced, fourth-generation blockchain.

Shortly after it was introduced, Solana partnered with another up-and-coming blockchain protocol called Serum to create a DEX. Serum utilized the advanced system Solana created to develop a non-custodial spot and derivatives exchange. The DEX was met with excitement from the crypto community due to these new features. Specifically, Serum created an on-chain central limit order book (CLOB). What is crazy is that this book auto updates every 400 milliseconds to ensure the most accurate pricing traders! How cool is that?

 

What Problems Does Solana (SOL) Solve?

The first and foremost thing I want to know when looking at any new (to me) coin is what problem does this coin attempt to solve that other coins fall short? There are actually several pain points in the market that Solana attempts to solve and rectify. The network’s architecture was engineered from the beginning to be both easily expandable while simultaneously being resilient to censorship. This trustless and distributed blockchain technology tackles both transaction settlement speed concerns and bandwidth via this design feature.

Scalability

Scalability issues continue to be the ever present plague of the crypto market. Early blockchain’s reliance on the Proof-of-Work consensus mechanism has led to serious congestion issues to say the very least. OG coins like Bitcoin and Ethereum were designed to increase transaction fees as the network’s congestion rose. Sadly, this has led to major issues for both of these blockchains. Ethereum is also currently flooded with new projects, partly due to the recent rise in DeFi platforms. Sadly, this congestion equates to more fees and transaction delays for the average user. Not something that is very attractive to the average user.

Solana (SOL) Homepage

Solana, however, avoids these issues by introducing systems that allow the network’s transaction throughout to scale proportionally to its bandwidth. To explain this a little better, let’s take a look at a pretty typical example. Bitcoin, for instance, can handle seven transactions per second (tps), Ethereum can handle around twelve TPS. According to developers, Solana is capable of 50,000 transactions per second! How is THAT for scalability?

Other Benefits of Solana (SOL)

It’s definitely not difficult to see the benefits of a network that can scale up to meet the demands of the global economy. Additionally, this scalability makes Solana a better blockchain for Dapps such as DEXs and staking protocols. Here are some other great benefits you can have when you join the Solana network.

Censorship Resistant

The trustless and distributed nature of Solana makes this ideal for day-to-day commerce. You can conduct global transactions in seconds for a fraction of the cost of more popular coins. Best of all, since there is no centralized control over the network, there is no one to stop, block, or confiscate your transactions like fiat currencies can easily do.

Delegated Staking

As a delegated staking blockchain, users of this coin gain some major advantages over the competition. For starters, absolutely anybody can secure absolutely passive income staking their SOL on their network. Staking protocols are still gaining popularity in the market because they are easier for new users to learn, while still providing more stable rewards when compared to trading for example.

So, JUST How Does Solana (SOL) Work?

Well, if Solana is to accomplish all of its goals, the original developers had to think outside of the box by quite a large margin. Because of this, the Solana network completely is jam packed with all kinds of proprietary systems and protocols. These systems work in “synergy” (so to speak) in order to create a both extremely useful and reliable blockchain network.

The Consensus Mechanism

Solana is a Delegated-Proof-of-Stake (PoS) network. DPoS networks differ from PoS networks in a couple of ways. Both of these mechanisms utilize Validators to process the transactions. Validators are also chosen based on their overall holdings in the network. This means that the more SOL you actually hold, the higher the chances you get chosen to be the validator. This strategy ensures that only those actually vested in the network (AKA skin in the game) hold this position.

Validators earn their rewards as they approve the transactions and then add them to the blockchain. Those who aren’t Validators can still secure some easy profits by delegating their holdings to one of the Validators. This system allows everyone to participate in securing the network and allows the users to decide what nodes deserve to validate transactions. Pretty darn cool if you ask me!

Solana Network Stats

Solana Network Stats

DPoS networks are multiple times faster than PoS blockchains. The average blocktime for Solana is only 2.34 seconds. However, bench tests have shown the network can actually approve blocks in as little as 1.6 seconds. Considering Bitcoin can require up to 10 minutes or more to accomplish this task, it becomes clear to see why DPoS blockchains continue to gain momentum.

Proof of History (POH)

The POH mechanism serves a vital role in the Solana ecosystem. This protocol increases the efficiency of the blockchain by integrating timestamps in every transaction approval. These timestamps enable nodes to establish the sequence of events. In this way, the system serves as a cryptographic clock for the network.

Tower BFT 

The Tower BFT system improves network responsiveness by allowing Validators to vote on the state of the ledger. This mechanism also records the previous votes and utilizes them to speed up validation by allowing Validators to simply reference their previous votes rather than running the entire transaction chain. In this way, Tower BFT can be considered an upgraded version of the Practical Byzantine Fault Toleration (PBFT) system found in other DPoS blockchains.

Gulf Stream

Gulf Stream does away with the mempool concept. A mempool is a waiting area for transactions before they are selected to go in the next block. In Bitcoin, the mempool is used to provide miners a chance to select the highest paying transactions to process first. Gulf Stream introduces a new strategy that allows the network to forward transactions to validators before the current block of transactions is finished with its approval.

Sealevel

Sealevel provides Solana with a major advantage over the most popular smart contract-based networks in use today. Solana uses Sealevel to execute smart contracts that can run in parallel. This system also allows similar smart contracts to leverage the same protocols. This strategy means that thousands of smart contracts can run simultaneously and in parallel without bogging down the network’s performance.

Pipelining

As part of its open hardware structure, Solana incorporates a transaction processing unit known as Pipelining. The protocol works by assigning a stream of input data to different hardware based on its specifications. This system helps to improve block validation times. 

Turbine

Turbine is another proprietary technology introduced by Solana. This blockchain broadcasting protocol takes important data and breaks it into smaller pieces. These packets can be sent to nodes faster and using less bandwidth.

Cloudbreak

Cloudbreak is the Solana network’s account database. This system improves on previous iterations by allowing the system to read and write data at the same time. Cloudbreak works in tandem with the Pipelining and Archivers protocols.

Solana Ecosystem

Solana Ecosystem

Archivers 

Archivers serve a crucial role in terms of data storage. They are hardware-based storage mechanisms that enable faster access to crucial network information. Specifically, Validators can pull up the transaction history of the network directly from Archivers.

SOL

SOL is the native token of the Solana network. This versatile cryptocurrency enables users to earn passive rewards through the network’s delegated staking options. Notably, SOL is hard-capped at 489 million coins.

 

How to Buy Solana (SOL)

Solana (SOL) is currently available for purchase on several exchanges.

Atomic Wallet – This is how I usually get more Solana. It is always extremely easy to swap just about any coin you want with this wallet!

 

How to Store Solana (SOL)

Storing your SOL is easy as well. The project’s developers specifically recommend the Trust Wallet. This mobile wallet is available as a free download on both Apple and Android. I will most likely plan on staking mine within my Atomic wallet. Although I may stake some additional places down the road as well.

 

Solana – A Technological Leap 

Solana is one of the most advanced blockchains in operation currently. The developers behind this project succeeded in creating a network that could surpass today’s payment processors in terms of both TPS as well as functionality. As such, you can expect to see more developers make the switch over to Solana as their original blockchains continue to suffer scalability concerns. You can collect Solana coin for absolutely FREE (along with many other coins) by using Dutchy Auto Faucet. You can find out more about how that works by clicking the banner below:

 

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