Solana and SOL digital currencies are among the networks that, thanks to a strong team, can largely solve the problem of scalability and provide new solutions. This cryptocurrency is one of the currencies that the term Ethereum killer is used, since in addition to providing smart contracts in its network, it also has a high speed in processing information and confirming registered blocks. Due to its high transaction speed and low transaction fees, this cryptocurrency has become one of the main contenders for the best digital currencies. In the continuation of this article, we will examine the Solana coin and its main objectives from the digital currency Signal website.
What is Solana?
Solana is one of the most widely used cryptocurrencies in the world today, establishing itself as one of the top 10 cryptocurrencies in the world. This new platform, which is expected to deploy one billion users in its next phase, has managed to attract the opinion of developers, investors, and users interested in the digital currency market.
The problems of the Ethereum network and the discussion of scalability made this network reach its current position very quickly, but now it can be considered the most serious threat to Ethereum and its popularity. Therefore, Solana can be considered a strong competitor to Ethereum. The relatively slow control of operations in many operations has always been raised as one of the disadvantages of decentralized systems; Meanwhile, with the arrival of projects like Solana, slower blockchains are gradually giving way to more efficient blockchains.
On paper, this network can process 50,000 transactions per second; This means that, in addition to other blockchains, Solana threatens payment companies such as PayPal and MasterCard. Because the ecosystem supports smart contracts, it can host a variety of decentralized applications, from non-fungible tokens (NFTs) to decentralized exchanges and automated market makers. On the one hand, Solana can be described as similar to the Ethereum network, but more efficient.
The acceptance of this network among experts and developers in this field is because currently more than 400 projects are running in this ecosystem and the number is increasing day by day.
What is SOL Currency?
The SOL cryptocurrency is actually a token used on the Solana blockchain network. Solana uses a delegated proof-of-stake consensus algorithm to encourage SOL token holders to participate in the network. As part of Solana’s plan to increase security, all payments made in SOL cryptocurrency will be incinerated. This negative inflation regime encourages people to hold and use SOL cryptocurrency to participate in the consensus process.
Solana Cryptocurrency Goals
In this section, we will discuss the objectives of the Solana cryptocurrency:
1. Scalability improvements
One of the fundamental innovations that Solana has brought is the Proof-of-Day Consensus Algorithm or POH, which was presented by Anatoly Yavenko. This concept makes the protocol more scalable, which in turn increases usability.
2. Short processing time
Solana is known in the crypto world for its incredibly short blockchain processing time. Solana’s hybrid protocol significantly reduces the confirmation time of transactions and execution of smart contracts. Solana has attracted the attention of many institutions due to its fast processing time.
3. Low fees for fast processing
Solana’s protocol is designed to serve time-poor users and institutional clients. One of Solana’s key promises to customers is that they won’t be surprised by increased fees and taxes. The protocol is designed to provide scale and speed while keeping transaction fees low.
Solana Cryptocurrency Performance
In short, it can be said that this cryptocurrency has a complex algorithm. As mentioned at the beginning of this article, this digital currency uses the PoH Consensus Algorithm (PoH) to add timed transactions to the Solana block. One of Solana’s managers is to create new blocks. These leaders distribute the operations that take place in the block. After confirming the transaction, they send this transaction to other nodes. In other words, it can be said that the amount of rewards received in each section is proportional to the number of SOL tokens available in the network.
What is Solana used for?
The original coin of the Solana network is known by the symbol SOL. One of the uses of Solana cryptocurrency for staking is that the network provides security and robustness to its network through a staking mechanism. Users can also use SOL tokens to pay for simple transactions and execute smart contracts. Coin Solana has many uses in decentralized applications built on this blockchain platform. For example, it can be used to vote and participate in the governance of the Chainvote platform. Sol is also divided into smaller amounts called Lamports. Each Lamports is equal to 0.000000001 SOL.
What makes Solana unique?
Solana was able to do well without advertisements or celebrity endorsements. Solana has historically tended to grow during times when the market has widened and Bitcoin is correcting. The reason for this story is to be found in the value display of PA or digital currency. There is a very important point about Solana PA currency. By comparing the chart of Bitcoin and Solana, we can see that in the last ten months, the price of Bitcoin has grown by about 400% and the price of Solana by 900%.
This is natural because most altcoins have outperformed and grown Bitcoin. However, in the more detailed details of the market, we notice that while Bitcoin has experienced a price correction and decline, Solana has faced significant growth. In fact, Having this function in addition to Bitcoin is a key factor in the price trend of the Solana coin.
Solana’s main focus
In more detail about Solana’s focus, it can be said that the web has come to accelerate the decentralization of governance everywhere. This blockchain’s extremely low fees, extremely fast performance in verifying transactions, and decentralization have made this network very popular among developers, businesses, and investors. SPL is the token generation standard on the Solana network. In other words, it can be considered similar to the ERC standard of the Ethereum network. SPLs are the de facto standard for virtual images created on this network. You can use Rust, C, and C++ programming languages to create tokens on this network.
Solana runs on the Proof of Stake consensus protocol, and the native token of this network is called Sol (SOL). According to Solano, 8% is added to the number of network tokens every year. On the other hand, each year, from this 8%, 15% is deducted by way of the inflation reduction rate and this reduction continues for about 10 years. Finally, after nearly 10 years, Solana’s annual inflation rate reached 1.5%.
Solana Blockchain Network Features
The Solana blockchain network has special features compared to the network of other cryptocurrencies. Among these characteristics, we can mention the presence of the following in it:
✅ Turbine Algorithm: Using this algorithm, the important information in this blockchain is divided into bits. In this way, packets can be easily connected to nodes quickly and without requiring much bandwidth.
✅ Proof-of-time algorithm: Once transactions are confirmed on that network, using this algorithm can help make transactions more efficient and faster. This algorithm helps increase throughput and handle events.
✅ Archive: Archives can be thought of as hardware storage systems. These factors make it possible to access information quickly and the trader can consult the transaction history.
✅ BFT Tower: This tower helps to record the votes used in the past and verify them by using them at high speed. In fact, this tower is an advanced type of PBFT system in other blockchains.
✅ Cloud Break: This system can be considered the basis of network accounts. To enable users to read or write data quickly, this database uses archive and pipeline protocols.
✅ Pipeline processing: Solana processing is a pipeline. By manipulating the data in this database, authentication becomes easier.
✅ gulf stream: Gulfstream helps this crypto network route transactions to the validator. In this way, transactions are completed faster and the additional burden of incomplete transaction results is reduced on the validation masters.
✅ Sea level: Using this technology, Solana cryptocurrency transactions can be done intelligently and simultaneously and avoid creating obstacles in the operation of the network.
✅ The Solana Group: These clusters are groups of computers that work as a unit in a network. These computers can work together or against each other in processing the output verification of invalid programs.
Solana digital currency wallets
- Math Wallet
- Trust Wallet
- Block folio
- Atimc Wallet
- P2P Wallet
- Cion 98
Exchanges that support Solana coin
1. Binance exchange
This exchange has a high volume of daily transactions and is very popular among users. This exchange supports currencies like Graph, IAS, Bitcoin and Polkadot.
2. Exchange OKEx
This exchange offers users the best facilities in the field of cryptocurrency trading. This exchange supports countless digital currencies.
3. Bilaxy Exchange
This exchange is a centralized exchange established in mid-2018. This exchange supports currencies like Binance Coin, Ethereum, Bitcoin, etc.
4. FTX exchange
It is an exchange that supports Bitcoin, Litecoin, Ethereum and more for Solana cryptocurrency.
5. Huobi Global Exchange
This is a Singaporean exchange established in 2013. This exchange also supports countless digital currencies.
The future of the Solana currency and investing in it
With the low cost and high-speed digital currency “SOL” offers to its users, it is clear that the future of Solana currency can be very bright. With these features, this currency is a fast and low-cost alternative to Ethereum. Solano is launching various “Solana Pay” projects that could increase its popularity among traders.
The digital number “SOL” is very small now, but its value is not much lower than Ethereum. On the other hand, since the future is ahead of Solana, it can be considered a good scenario to invest in it. This investment helps to expand the digital currency “SOL”. Another positive point in investment is the possibility of “Solana”. That is, you can be rewarded with the digital currency “SOL” according to the number of shares you deposit in your wallet.
Is Solana a good investment?
Solana, unlike other coins or tokens, has been recognized by the crypto community for its technical excellence and efficiency and has been accompanied by rapid growth. This benefit will be a good opportunity to stay and continue to increase the value of Solana in the future. Solana, which has a strong reputation, has the potential to be a catalyst that will convince people to switch from centralized to decentralized systems. In short, Solana combines the usability of a major centralized platform with the exceptional security of a decentralized platform.
Prediction of the future of Solana digital currency until 2025
Despite all the problems, the Solana coin project may have a bright future This is because the blockchain of this currency is very advanced in terms of scalability and has the ability to do thousands of transactions per second. This high transaction volume (high throughput) makes the Solana (SOL) digital currency part of the fastest blockchain network in the world. These two factors can make Solana a suitable and usable platform for third generation Internet games (Web 3.0) and NFT.
For example, platforms like Magic Eden have achieved great success in this field and have been able to create an active ecosystem for NFTs based on the Solana network. The Solana digital currency can also be considered a good choice for decentralized finance (DeFi) protocols due to its low transaction fees.
With all this, the Solana project is developing its presence in mobile operating systems. The project is called “Solana Mobile”. The project also includes a unique phone fully compatible with the Solana blockchain, called Saga. So if you think that Solana is completely dead despite the events and the crash, you are very wrong.
Analysis of Solana
Solana is considered to be the most powerful project in terms of investment and many innovations are available. The Solana project team is a group of people with experience in the field of technology, and they are able to push this project to achieve its ambitious goals. The growing price of the SOL cryptocurrency and the increasing use of this blockchain is proof of this statement. Solana has managed to solve the problem of scalability by offering new solutions, while maintaining the security and decentralization of the network. If the development of this blockchain network continues, the Solana name will be placed next to many prominent and old projects in the market in the future.
Compared to other blockchains and digital currencies, Solana is a newer project that has been able to create positive effects by increasing speed and improving scalability. Solana, the local digital currency, has also performed well in recent months and has been able to generate significant profits for investors. However, the implementation and use of this project are still not at the level of blockchain popularity in the market and it is likely that in the future when it becomes more popular, we will see the value of Solana increase even more.
Due to the popularity of Solana among its users, the most popular wallet supports this digital currency, and since it has a large market, you will not find an exchange that does not have Solana in the currency list. Solana has a lot of potentials and already says a lot as one of Ethereum’s main competitors. On the one hand, high acceptance and acceptance, and on the other hand, the many applications in the Solana ecosystem promise bright days for Solana.
Can Solana mine?
No, Solana is a safe platform and cannot be mined.
What are Solana's transaction fees?
Transaction fees in Solana are very low. The maximum fee for transferring Solana digital currency to the wallet is 0.1 Solana. It should be noted that digital currency withdrawal fees vary depending on trading volume and amount of traffic.