ITSolana crypto blockchain (SOL), which is often referred to as an Ethereum killer, has never been heard of. The whitepaper was quietly published in 2017, at a time when the crypto market was booming.
In 2020, this incredible cryptocurrency was brought to the forefront after it was noticed by tech giants and the masses. In this post, I will reveal its details. Let’s talk about Solana (SOL).
What is Solana Crypto Blockchain?
Solana is an open-source, decentralized blockchain with support for decentralized apps and smart contracts. Anatoly Yakovenko founded it in 2017 after working in companies such as Qualcomm and Dropbox.
In addition, Solana Price Prediction, the fastest blockchain within the crypto industry, uses the Proof of Stake protocol (POS) in conjunction with Poof of History.
What is the Solana token (SOL)?
It is the native cryptocurrency of the Solana Blockchain. S is used to verify network transactions, secure the network and run on-chain programs. SOL can also be used to earn rewards on the Solana blockchain.
Although, SOL is similar in use to Ethereum ETH and Cardano ADA tokens. This indicates that SOL could be a store of value for HODLers.
Solana Crypto Core Innovations:
1. Proof of History:
Proof of History, a cryptographic timer within the Solana Blockchain is an innovative feature. Moreover, it is a unique feature that allows nodes to determine the order in which events occur within the network without the need to communicate with each other.
Although it may sound similar to other blockchain protocols, such as POW and POS it is not a mechanism for consensus. Furthermore, PoH increases efficiency by storing records of all transactions and allowing the system to track the events in the network.
2. Tower BFT
Byzantine fault tolerance is the acronym for Tower BFT. Moreover, it is similar to the Cardano Ouroboros consensus algorithm in that it takes into account the cryptographic clock and can reach consensus quicker by eliminating the need for each node to be notified of the completion of the process.
3. Gulf Stream
Gulf Stream is a protocol which caches transactions and then sends them to all nodes of the network. Solana can now reach a staggering 50,000 transactions every second by allowing validators to perform transactions in advance.
4. Turbine
The turbine divides the large data into smaller packets, which makes data transmission faster and more efficient between the nodes. This reduces the possibility of network congestion.
5. Sealevel
Sealevel, as I explain it in Cryptocurrency terms, is somewhat similar to Sharding. It allows the system to run parallel processes along the same chain, which results in faster transactions.
6. Pipelining
Validation optimization is achieved by using pipelines. Pipelining is the process of assigning priority to the data stream for processing transaction information faster.
7. Cloudbreak
It is an advanced database structure. It is needed to improve network throughput and make the system more scalable.
8. Archives
As their name implies, archives store network data. This is a distributed ledger device that records and captures data from the network. It works like a hard drive to store your movie files.
See Also: Zcash Price Prediction
What is the Solana System?
Solana, to be honest, is extremely complicated (more complex than the Internet Computer ICP Coin). I will explain this by using a hypothetical case.
Imagine a college with highly-skilled professors (nodes), but no leader (principal). Each professor has a core area of expertise, such as Geography, History or Finance, and they are all experts in other departments of the college.
Then, each professor is randomly selected to be the leader for 1.6 hours, and he must complete the paperwork from all other departments (it takes Solana 400 ms per block, while the leader has to rotate four blocks at once, giving a total of 1.6 seconds).
The selection is random, but every professor has an electronic tablet with a list of 10 principles that will be taught at the time. This allows each department to send the paperwork in advance for a faster completion time (Gulf Stream).
When the person in charge signs and completes the paperwork, the timestamp on the document is added before it is sent back to the department concerned (Proof of History). Each activity is timestamped so that each department can operate its processes without confusion.
Solana Benefits:
High Transaction Speed
Solana, the only blockchain to offer a staggering 50,000 transactions every second. This number is not surpassed by any other blockchain, and many are still in development.
Strong Team
Solana’s core team has relevant experience in the design of distributed systems and compression algorithms. The founders have experience working for tech giants such as Qualcomm and Dropbox. The team has a good understanding of blockchain technology and is very clear on the scope of the work. This shows in the rapid growth of the project.
Financially stable:
At the time I wrote this article, Solana was funded by 28 investors. In addition, the total funding amount is $335,8 Million, making it one of the most stable projects in the crypto space.
Store of Value
The Solana SOL Token has been gaining a lot in popularity this year and is now among the top 10 cryptocurrencies by market capital. Furthermore, it is clear that cryptocurrency investors consider it a highly appreciating asset for long-term investment. It is a valuable store of value.
Solana Drawbacks:
Missing Milestones on the Roadmap:
Solana consistently fails to meet the milestones set out in its roadmap plan. Mainnet is in beta and still needs a lot of work before it can be fully functional. The team has been able to secure big partnerships with FTX Serum Dex Chainlink and Tether.
The rise of competitors
Solana is a leader in critical tech factors such as TPS, Security etc. The main threat to its development is from competitors such as Polkadot Ethereum and Cardano. All are vying for the same position. With the increasing adoption of blockchain, the game is getting hotter.
Solana Price Prediction
Despite development delays. Solana’s strong tech features make it stand out from other blockchain projects. Furthermore, its ecosystem continues to grow rapidly, with many developers working on DAPPS and Smart Contracts. Price increases are a clear indicator of increasing demand.
During the recent market crash and uptrend, Solana SOL reached an all-time high of $200 and a low of $20. In addition, it’s easy to see that Solana will be around for a long time after studying its project potential and partnerships, including the Terra LUNA stablecoin being added to the blockchain.
I wouldn’t surprised if the project tried to replicate the growth of the Ethereum blockchain in the coming bull run and hit the $500 mark. You must consider the pros and cons of the digital asset before making a decision.
