Despite Dogecoin, which is well-known thanks to billionaire Elon Musk, Solana is another altcoin coin that recently moved into the limelight.
What is Solana?
Solana is a programmable blockchain similar to the theory that supports developers and institutions around the globe to create decentralized applications and marketplaces.
Anthony Yakovenko (former worker at Qualcomm and Dropbox) founded the company in 2017 together with Rhodes Gokal, a former digital health worker, and two other engineers.
How It Works and Why It Is Unique
Currently, the Solana Foundation funds and develops the project’s community-building initiatives.
Solana has a unique consensus architecture that results in a network of more than 200 distinct notes generating up to 50,000 transactions every second. As a result, the market capitalization has gone up.
Solana also uses a proof of history method that allows users to make historical records showing an event that occurred at a particular time. The “Proof of history” enables the Blockchain to work fast while maintaining security.
The algorithm is a high-frequency verifiable delay function that uses specific sequential numbers to evaluate transactions or events.
There is also a cryptographic clock that keeps time and the order of events.
The leader sequences the messages and other nodes process them. Once processed, the leader then executes the transactions and publishes them. After which, the verifiers publish them. Once confirmed, the transactions move to the consensus algorithm.
Solana’s Sales Data
On Tuesday, SOL hit an all-time high of above $130 (close to a 30% increase). Since the beginning of 2021, the company has jumped 2,348%.
The platform’s success can be attributed to the intense heat surrounding investments, as it supports ‘smart contracts’ . These Smarted contracts are those needed for Explosions of decentralized finance applications and NFTs.
Smart Contracts mean that transactions get conducted only under certain conditions. Similar to Solana, Ethereum also offers this opportunity.
Solana’s price has gone up 225% just this August. The company’s success comes when the broader market seems to experience a crash with regulations intensifying in China.
Solana is currently the 8th largest cryptocurrency with a market capitalization of over 40 billion dollars. Each $SOL coin costs $130.
Altcoins seem to be taking over the market. Mid-August this year, Bitcoin lost more than two million dollars, Ethereum gained three million dollars, while Solana gained more than 7 million dollars.
Global Solana Hackathon is a competitive project that aims to connect development teams around the world. This exciting project’s goal is to draw talent and great ideas to Solana and is considered a great asset for the company’s success journey.
Should You Invest?
Ethereum has a TPS rate of 15 to 45, although the experts behind Ethereum say the 2.0 version will handle more than 100,000 transactions.
Solana, on the other hand, has a high TPS rate and handles 50,000 transactions. This TPS rate is an added advantage that makes the project look promising for the future, as a technological investment.
Solana could be a great platform to invest in, but don’t forget to weigh your options.