Evolution in Blockchain Technology

Things can never be perfect. There are always room for improvements. Same is the case with blockchain technology. It all started with Bitcoin, and then improved with the introduction of Ethereum. The technology now is in its third phase, with Solana being one of the very few third generation blockchain technologies. The future looks bright for Solana indeed.

New Projects are Vital

New projects are great signs for the development of the technology. Now, the focus is on improvement of this blockchain technology. Improvements come with time and dedication. It is evident that blockchain technology has evolved overtime, and now it is a much more complete technology than before—when it all started in 2008 with bitcoin.

A much Anticipated Race

The race for the best blockchain technology is in fashion, creating all the buzz that it thoroughly deserves. Developers, investors, and analysts all have something to do, something to talk about. These are interesting times for the cryptocommunity.

The Third Generation Blockchain Concept

The theme is to work towards a perfect technology which is without the limitations of first two generations of blockchain.

Solana - The Perfect 3rd Generation Network

It's a tough ask being a perfect 3rd generation blockchain. There are many boxes that needs to be ticked. So, why Solana has great potential? Let's explore!

In 2015 Ethereum bacame the first network to offer smart contracts and decentralized applications. This was a step up from bitcoin, which only used blockchain for successful running of a decentralized payment network.

Smart Networks and Decentralised Applications

Solana network supports smart contracts and decentralized applications like Ethereum. The introduction of these features has paved the way for enhanced speed, security, and decentralisation. The first generation of blockchain was lagging behind in these areas.

Here Comes Solana

Let's talk about speed, scalabilty, and security. These are the deciding factors determing the effectiveness and future prospects of the blockchain. It is often claimed by crypto experts that Solana has achieved that perfect mix in a very short time.

The Name: Solana

The name itself has quite a unique feel to it. Meaning 'Sunlight' or 'Eastern Wind' in the Spanish language, Solana for sure brings new day for the improved third generation of blockchain technology.

So You Want Speed?

If that's the case, Solana will blow your mind. Yes, it will. The Solana Network is designed to process 710,000 transactions per second, afterwards the nework is capable to publish those transactions to a ledger in less than 400 milliseconds (i.e 0.4 seconds). This is what you call speed.

30 Times Faster

Big Networks such as VISA is used to process transactions. The Solana Network is 30 times faster than the Visa Network, making it one of the fastest blockchain technology ever.

Consensus Algorithms

The second aspect that has seen innovation over the course of blockchain journey is consensus algorithms. These consensus algorithms answer the famous question that "How confirmations or surety will be achieved in transactions?"

Keeping in view the sensitivity of this aspect, it is always important to ensure security. Earlier blockchains ensured security by compromising on speed. This was the area where immense research was carried out, and many ideas came in-play.

How nodes are going to interact with each other in such a way that speed, security and decentralisation can be achieved at the same time? This question needed answering if blockchain technology had to evolve.

Solana came up with the Proof of History consensus algorithm to address these questions.

The Proof of History Consensus Algorithm

By solving the speed issue that other consensus algorithms had, Proof of History algorithm ensures that time is not wasted by nodes in achieving consensus over the exact timing of transactions.

In-fact, the proof of history system itself allocates a cryptographic number to a transaction. The time and proper sequence of transactions are then verified by a single node/validator.

By using the individual cryptographic number of each transaction the validator is able to arrange the transactions in proper sequence, while noting down there exact timing.

So, without waiting for verifications from other validators/nodes, the synergy of proof of history algorithm and the individual validator results in extremely high speed in achieving consensus over the timing of all transactions.

Result is one of the fastest block time in the blockchain industry. That's what Solana has been able to achieve.

Security and Decentralisation at Solana

Eye blinking speed is of less value if the blockchain has security issues. The Proof of History consensus algorithm combined with features such as being public/open source and permissionless allows for strong security and decentralisation.

There is no central authority and a single individual can't control or manipulate any of the transactions. Once consensus is achieved on the authenticity of transactions, it is final—and cannot be changed later by anyone.

Having independent validators as nodes, the network discourages chances of foul play by big players.

The SOL Token

'SOL' is the token for the Solana Network. Its individual unit is called Lamports, just as Bitcoin have Satoshi's.

Important Numbers for the SOL Token

The 'SOL' token has a fixed supply of 494 million, of which 270 million is currently in circulation. The circulating tokens in total have market capitalization of around 8 billion US$.

Token Distribution

Around forty percent (40%) of the 'SOL' tokens are allocated for the community, and sixty percent (60%) is the share of founders, the Solana Foundation, and different institutional investors.

Nodes at Solana

Independent and credible nodes contribute so much to the blockchain in terms of efficiency, effectiveness, and user trust. The Solana Network currently have over a thousand nodes. And, that number is increasing rapidly.

Want to Buy the 'SOL' Token?

Whenever there is a decision to be made regarding investing, the potential of the investment is considered. Undoubtedly, Solana has great potential. The project is relatively new also, which is an indication that prices will rise when the blockchain develops and more people get to know about it.

So WHY Solana?

Solana is one of the very few true third generation blockchain technologies that is live and operational. Let's see what it can achieve with time, as its achievements will be gamechanging and truly beneficial to all the people involved in blockchain technology.