PRICE

$ 28.32

1H % ROI

2.16%

24H % ROI

-1.28%

7D % ROI

5.72%

Rank
14

BTC

Ƀ 0.00079800

24H Volume

$ 316,886,423

Available supply

272 637 123 SOL

Total supply

488 630 611 SOL

Market Cap
$ 7,718,142,917

PRICE

$ 28.32

BTC

Ƀ 0.00079800

1H % ROI

2.16%

24H % ROI

-1.28%

7D % ROI

5.72%

24H Volume

269 202 622

Available supply

272 637 123 SOL

Total supply

488 630 611 SOL

Rank

14

Market Cap

6 556 747 643

Solana: A brief summary

Solana (SOL) is a blockchain providing DeFi solutions. The Solana protocol is designed to facilitate the creation of dApps and to democratise DeFi, and was originally created by Anatoly Yakovenko in 2017. He co-founded Solana Labs with a former Qualcomm colleague, Craig Fitzgerald. Solana was officially launched in March 2020 by the Solana Foundation, headquartered in Geneva, Switzerland. Solana uses proof-of-history combined with proof-of-stake to improve the scalability of its blockchain.

Solana: Live Price Chart

What is Solana (SOL)?

The biggest problem with blockchains today is their scalability and transaction processing time. As an example, long processing times slow down, or even prevent, decentralised applications (dApps) from performing a lot of operations quickly. This is where Solana steps in, with its high-performance blockchain solution.

Thanks to its unique technology, Solana is able to process up to 50,000 transactions per second, and each block has an average duration of 400 ms. In comparison, Bitcoin can only process seven or eight transactions per second, with a 10-minute block time. As a result, the solution developed by Solana is very attractive for dApps, who need to perform many operations as quickly as possible.

Arriving on exchanges at around USD 0.80 on 10th April 2020, the SOL token managed to pull off a 20x just a year later. At the time of writing (March 2021), Solana has already managed to position itself in the top 25 digital assets by market cap, which is an undeniable sign that its technological promises are winning over crypto investors.

What is Solana for?

Solana is a blockchain that allows you to process a mind-blowing number of transactions  per second, and it has a proven track record. Because of this enormous number of transactions (more than Visa), Solana is primarily used to enable dApps to operate without having to be slowed down by the current limitations of the most popular blockchains.

To be able to process so many transactions per second, Solana has developed its own consensus, proof-of-history (PoH), which is combined with a proof-of-stake (PoS) and proof-of-replication (PoR) system. It would be quite long and complex to explain the complete operation of this technology, but we can give you a quick explanation that is easier to understand, by taking a couple of shortcuts.

Firstly, the PoS consensus decides which node will be responsible for verifying transactions according to the PoH system. These transactions will then be duplicated (or sometimes copied more times) through PoR, and verified by at least two different nodes. If the data matches, then the transaction is approved and considered valid, and the PoH node receives SOL tokens as a reward. Otherwise, the transaction is considered fraudulent and the PoH node is penalised – SOL tokens are deducted from those initially staked in order for the user to be allowed to run a node on the network.

To make the network as secure as possible, Solana periodically sends false information about its network through an invalid hash. In this way, the protocol can ensure that the people (or companies) who run the nodes act correctly.

So, we just saw how Solana handles and secures transactions on its network, but we haven’t seen the famous proof-of-history that is unique to this blockchain. So, here’s how it works, in a very simplified way.

Many transactions are sent to a PoH node in the order in which they were made on the network. The node then emits a hash that indicates the order of transactions. In order to ensure that these have been carried out in this order and that the PoH node does not attempt to cheat, they will be sent to several checkered nodes that will also give the order in which these operations were carried out. If everything matches, then the block can be considered valid.

To become a POH node, you have to already own a number of SOL tokens. You then have to stake the amount of SOL required in a special contract. It is a vital system in order to be able to penalise the bad actors on the network. When nodes do their job properly, they receive SOL tokens as a reward, while they can lose them in the event of fraud.

How to buy SOL?

 If you want to buy cryptoassets, it is generally possible to buy the most popular ones directly with fiat money (pounds, dollars, etc.) by going to a reputable exchange platform and buying them directly with your money.

Unfortunately, Solana is not yet one of these cryptocurrencies, so it will often be necessary to go first to one of these buying platforms and to first get BTC or ETH, and then exchange these for SOL tokens. However, you have to be careful not to register on any old exchange, because many scams exist in the world of cryptocurrencies. In order to avoid any risk of this type, we advise you to use only one of the exchange sites that we have tested and approved.

The most iconic platform to buy SOL is undoubtedly Binance, but if it’s easier for you, you can simply use one of the other exchanges we recommend. Be very careful using an exotic platform, as the risks of never seeing your money again are unfortunately high.

What is our opinion on Solana (SOL)?

We actually have a rather positive opinion of Solana, even if we think that it is one of a group of blockchains that do very similar jobs, and not all of which will probably exist in the long run.

If Solana can develop a complete ecosystem that is easier to access and less expensive to operate than its competitors, then it is quite possible that the value of SOL tokens will continue to appreciate in the future, and that the project will become one of the industry’s leading blockchains, as its strengths on paper are impressive.

However, other blockchains are already present in the market and competition in the sector is fierce. Much like in the computer or telephone industry, there may not be room for more than two or three different blockchains, unless Solana manages to specialise in a niche sector of the industry, or even dethrone one of the players who are already established at the top of the market caps list.

If you would like to learn more about this blockchain and its unique proof-of-history concept, why not take a look at our complete guide on Solana (insert link), which explains in much more depth all aspects of this digital asset.

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