Solana(SOL) overview
The new product came as a result of Solana’s partnership with Checkout.com, Citcon, and FTX and Phantom integrations. Solana’s leading platforms are the decentralized exchange Serum, the open liquidity mining platform Quarry and the Solana staking platform Marinade Finance. There are currently 315,100,273 SOL coins in circulation with a total supply of 511,616,946 without an established maximum supply.
The network achieves this due to its unique consensus architecture.
The Limit-order feature enables users to trade at preferable conditions by specifying the price at which they are willing to make a trade
Even if generated by decentralized nodes spread around the globe, the produced blocks can be easily put in the correct order with help of the results of the VDFs.
You can watch the following video for a concise explanation of Solana blockchian network
Each node has to validate these blocks in consensus with other nodes.
This directly competes with other payment systems like Paypal or Visa.
Solana was launched in 2017, raised $25 million in an ICO, and its mainnet was released in March 2020. The value of Solana’s native SOL cryptocurrency is derived from its utility. SOL can be used to secure the network through staking, either as a validator node or a delegator. This is a profitable choice for SOL holders as stakers receive half of transaction fees and most of the emission of new tokens. SOL is also useful to developers and users of crypto apps within the Solana ecosystem as it is required to pay transaction fees.
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As the Solana ecosystem grows and the blockchain processes more transactions, SOL will become more valuable as there will be greater demand from stakers, developers, and users. Solana is a blockchain technology that allows developers to build so-called decentralized apps, or financial systems, on its infrastructure. It has very similar goals as Ethereum but aims to handle massive transaction volumes without compromising security and decentralization. In other words, it wants to replace Ethereum with none of the bottlenecks. To achieve that, Solana invented a process called “proof of history”, which helps its proof of stake consensus mechanism currently handle an unparalleled amount of transactions per second.
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These operations are referred to as consensus mechanisms and include "Proof Of Stake" and "Proof Of History". Staking – SOL tokens can be staked for passive income and governance participation. Whichever digital asset exchange you opt to use, protect your funds by performing exhaustive background research before buying Solana.
Powered by its unique combination of proof of history and what’s referred to as delegated proof-of-stake algorithms, the main problem Solana was attempting to solve was Ethereum’s scalability how does Solana (SOL) work issues. Delegated proof-of-stake is a variation of the more traditional proof-of-stake algorithm. Like Ethereum, the SOL token can be purchased on most major exchanges.
Proof of History Concept
Tmain person responsible for the existence of Solana is Anatoly Yakovenko, creator of the network. For the funding process, an ICO was launched in 2017 that managed to raise more than 25 million dollars and, in consideration of the Solana mainnet, the same was launched in March 2020. Solana has been gaining traction in the recent years in the NFT and DeFI ecosystems because it is considered faster and cheaper to use than Ethereum. Due to this reason, it is also often referred to as an Ethereum rival. In recent years, we’ve seen hundreds of millions of dollars in cryptocurrency donated to nonprofits.