Solana (SOL) Cryptocurrency and project review

SOLANA Cryptocurrency

Image by Getty

Solana (SOL) is a fourth-generation blockchain and cryptocurrency that uses an open infrastructure to provide greater scalability. The network introduces different and unique new technologies, providing users with unparalleled transaction speeds and enterprise-grade security. Since its launch in 2017, the network has grown significantly. Everyone immediately wanted to know what it is, what news to expect on this cryptocurrency, what its exchange rate will be, whether it will be affected by the dollar and the ruble. Now I will tell you all the main points about Solana, I will share with you how to buy it, how to sell it, what forecast to wait for it and which wallet will be good for storing it.

SOL is a native system token whose main function is to protect the network by means of stacking. The network uses a dPoS (Proof-of-Stake with delegation) mechanism; this means that any SOL token holder can delegate some of its assets to one or more validators, who process transactions and ensure the stability of the network.

The cryptocurrency is traded on Binance in SOL/USDT, SOL/BUSD, SOL/BNB and SOL/BTC pairs. It is also traded on other centralised exchanges. Profinvestment.com's review of Solana explains its purpose and how it benefits the blockchain industry.

Solana Ecosystem

Click to see full size image

History of Solana and the team


Solana's story begins in 2017. That's when Anatoly Yakovenko founded the project. He collaborated with Greg Fitzgerald and Eric Williams to achieve his goal of an infinitely scalable blockchain. Notably, Yakovenko used his past experience as a Dropbox engineer to help Solana achieve its goals. Today, Solana is recognised as an advanced fourth-generation blockchain. Shortly after its introduction, Solana teamed up with another promising blockchain protocol, Serum, to create DEX. Serum used the advanced system created by Solana to develop a non-custodial spot and derivatives exchange. DEX was welcomed by the cryptocurrency community with excitement because of its new features. In particular, Serum has created a central limit order book (CLOB) in the chain, which is updated every 400 milliseconds to ensure that traders get up-to-date asset prices quickly.

Solana team - CEO & CTO

Scalable

Scalability issues continue to plague the crypto market. Blockchain's early reliance on the Proof-of-Work consensus mechanism led to serious congestion problems. The best coins, such as Bitcoin and Etherium, were designed to increase transaction fees as network congestion increased. Unfortunately, this has led to serious problems for both of these networks. Ethereum is currently overloaded with new projects, partly due to the recent growth of DeFi platforms. Unfortunately, this congestion leads to increased fees and transaction delays for the average user.

How Solana works (SOL)

 
In order for Solana to achieve all its goals, the developers had to think outside the box. Thus, the network is filled with proprietary systems. These systems work in tandem to create an extremely useful and robust blockchain network.

Consensus mechanism


Solana is a delegated rate proof (PoS) network. DPoS networks differ from PoS networks in several ways. Both mechanisms use validators to process transactions. Validators are selected based on their total ownership in the network. The more SOLs you have, the higher the chances that you will be selected as a validator. This strategy ensures that only those who belong to the network hold the position. Validators are rewarded when they approve transactions and add them to the blockchain. Those who are not Validators can make an easy profit by delegating their assets to one of the Validators. This system allows everyone to participate in protecting the network and allows users to decide which nodes deserve transaction validation. DPoS networks are several times faster than PoS blockchains. The average block time for Solana is 2.34 seconds. However, bench tests have shown that the network can validate blocks in as little as 1.6 seconds. Given that Bitcoin takes 10 minutes to complete this task, it's easy to see why DPoS blockchains continue to gain momentum.

Proof of History (POH)

 
The POH mechanism plays a vital role in the Solana ecosystem. This protocol improves blockchain efficiency by integrating timestamps into each transaction statement. These timestamps allow nodes to sequence events. In this way, the system serves as a cryptographic clock for the network.

Power BFT

 
Tower BFT improves network responsiveness by allowing validators to vote on the state of the registry. This mechanism also records previous votes and uses them to speed up verification, allowing validators to simply reference their previous votes rather than running the entire transaction chain. Tower BFT can thus be seen as an updated version of the Practical Byzantine Fault Toleration (PBFT) system that is present in other DPoS blockchains.

Gulfstream


Gulfstream has done away with the concept of a mempool. A mempool is a waiting area for transactions before they are selected to move to the next block. In Bitcoin, a mempool is used to allow miners to select the highest-paying transactions to be processed first. Gulfstream introduces a new strategy that allows the network to redirect transactions to validators before the current block of transactions completes with its approval.

Sealevel

 
Sealevel gives Solana a major advantage over the most popular smart contract networks in use today. Solana uses Sealevel to execute smart contracts that can run in parallel. This system also allows similar smart contracts to use the same protocols. This strategy means that thousands of smart contracts can be executed simultaneously and in parallel without compromising network performance.

Conveyor processing

 
As part of its open hardware structure, Solana includes a transaction processing block known as pipelining. The protocol works by assigning the input stream to different hardware depending on its specifications. This system helps reduce block checking time.

Turbine

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

Cloudbreak

 
Cloudbreak is a database of Solana network accounts. It improves on previous iterations by allowing the system to read and write data simultaneously. Cloudbreak works in tandem with the Pipelining and Archivers protocols.

Archivators

 
Archivators play a crucial role in data storage. They are hardware-based storage mechanisms that provide faster access to important network information. In particular, validators can retrieve network transaction history directly from archivers.


Advantages and disadvantages of Solana

 
It's easy to see the advantages of a network that can scale to meet the demands of the global economy. In addition, this scalability makes Solana the best blockchain for Dapps such as DEX and stacking protocols. Here are some of the main benefits gained by joining the Solana network.

Resistant to censorship


Solana's distributed nature makes it ideal for everyday commerce. You can conduct global transactions in seconds for a fraction of the value of the most popular cryptocurrencies. Best of all, since there is no centralised control of the network, there is no one to stop, block or cancel your transactions, which is not the case with fiat currencies.

Delegated Stacking

 
As a delegated-stacking blockchain, users gain a number of major advantages over competitors. Firstly, anyone can generate passive income by putting their SOL online. Stacking protocols continue to gain popularity in the market because they are easier for new users to learn and provide more stable rewards compared to trading.

Find out the price of SOL

 
You can always check the value of SOL token on the famous coinmarketcap.com. Information is updated instantly and you can quickly make a decision if you want to buy or sell SOL.

Solana Price

Wallets for Solana (SOL)


Solana supports several types of wallets in its own command-line application, as well as third-party wallets that cannot be used for stacking, but only for storage. For a full list of wallets, exchanges and other services that support Solana (SOL) see https://solana.com/ru/ecosystem.

For iOS and Android:

  • Exodus
  • Trust Wallet
  • Coin98

Web wallets:

  • MathWallet
  • Sollet
  • List Element

Hardware wallets:

  • Ledger Nano S and X (used with SolFlare)

Solana Coin price prediction forecast

 
SOL token has added 292% (!) to its value in the last 30 days and I believe that given the innovative nature of the project and the general demand for cryptocurrencies by investors, we can prepare for a gradual increase in the value of this asset in the near future.