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Okay, it's no news that Solana is basically one of the hottest blockchains right now. I mean, just within a few months the price of its native token- Sol has undergone a crazy price surge of over +400% and is now currently sitting in the seventh position among the top ten cryptocurrencies by market cap!
What then is even more interesting to note? Here are a few reasons why Solana has drawn my attention and interest over the past few months...
INTRODUCTION
First off, Solana's mainnet was launched sometime in March 2020. This, following the release of the project's whitepaper in 2017 led to the birth of a very fast, scalable, and highly performing blockchain.
Here's what to know;
THE NATIVE TOKEN- SOL
SOL is the native token that forms the basis of the entire Solana ecosystem. it has a total supply of 489 million coins and a circulating supply of 29o million coins. SOL can be used to pay transaction fees when making transfers or interacting with smart contracts.
SOL also has a deflationary model which burns SOL tokens as more transactions are performed- Thus, the token supply can be reduced over time.
SOL uses the SPL protocol on which DApps and custom tokens can be built. This is something similar to Ethereum's ERC-20.
SOL can also be staked to earn rewards as part of the blockchain's Proof of Stake consensus mechanism.
UNIQUE FEATURES OF SOLANA I LOVE
Solana, over the last couple of months, seems to have proven itself as truly worthy of attention as series of developments have been continually put into place by the team behind the project to facilitate massive adoption.
It currently boasts as the fastest and most performing blockchain in the world right now. And where exactly is the lie? In terms of speed, transactions have about 400 millisecond block times. And come to think of it, the more people use it, the faster it actually gets. Solana can literally process over ten thousand transactions per second!- over 3x more than Ethereum.
All these fast transactions...but at what cost? Less than $0.001 per transaction with a current average of about $0.00025!
As of recent, following the current NFT trend, more NFT-based projects are starting to surface and build on Solana and people can now acquire, store and trade NFTs using NFT marketplaces on Solana.
As opposed to Ethereum, fees for listing and trading NFTs are even way lesser. Thus, facilitating ease and convenience of performing NFT transactions.
Overall and to name a few, I actually see these as good reasons why Solana can take a huge place and even continue to flip some of the biggest coins by market cap as time goes.
CLOSING THOUGHTS
In my own opinion, Solana is a project barely two years of age and I'd say, there is still so much room for improvements as this is still somewhat early and some aspects of the blockchain itself are still in beta stages. No many conclusions should be made yet. Who knows, maybe what we're currently seeing in price rally is merely the tip of the iceberg.
I have some SOL and I think I would still be holding for a while. I cannot wait to see how well this explodes!
Thank you for your time. Kindly let me know what you think in the comments :)
I have never heard of Solana, but thanks for writing about it in detailed...