Since its launch in March 2020, Solana has been soaring in almost every aspect. Also known as SOL, this system is one of the hottest blockchains on the market today. Solana is one of its kind web-scale blockchains and reliable networks.
With a speed and throughput of over 50,000 TPS, this ecosystem is proving to be highly effective. In the financial report it released recently, Solana is growing in every aspect of operations. This guide will summarize the details of the financial report and highlight some of the significant developments since Solana’s inception.
Steady Increase in SOL Revenue
According to the financial report, Solana has increased its revenue share over the last year. This is credited to its native token, SOL. The token experienced a 72% price increase over that period, forcing its way into the top 10 cryptocurrencies.
To put things into perspective, the SOL token has a market cap of $18.3 billion with an astonishing annual growth rate of 1,900%. This increased rate is by far the highest recorded in the crypto market over that period. With the new blockchain system, Solana seeks to revolutionalize the sector and tap into a wide range of markets.
Also known as the fourth-generation blockchain, the Solana network seeks to fix the blockchain trilemma. It intends to create a scalable and fast network without compromising on its decentralization and security. Its new protocol introduces eight core technologies that make transactions able to scale appropriately with the bandwidth. T
his results in enterprise-level security and industry-leading transaction. Thanks to Solana’s robust protocol, users can access a decentralized platform for apps with global scaling ability. Users can do this quickly without network downtime and costly gas fees of Ethereum.
Key Developments of SOL Since Inception
Over the last year, Solana has developed several projects that have proven essential in blockchain technology. Some of them include;
Proof of History (PoH)
Even though its name suggests otherwise, PoH is not a consensus mechanism. Instead, proof of history is a cryptographic clock that allows nodes to agree on the time order. This is done without nodes communicating with each other because every node has a clock.
PoH is crucial because it helps generate higher throughput and create more efficiency within the ecosystem. It does so by storing essential records of previous transactions. This enables the system to keep track of its order of events.
Gulf Stream is an essential protocol that makes it possible for Solana to hit 50,000 TPS. It is responsible for generating transactions and spreading them throughout the ecosystem. By doing so, Gulf Stream allows network validators to do transactions on time.
Handling transactions on time significantly reduces the confirmation time and various memory requirements. Perhaps, this is why Solana is growing at an astonishing rate.
This is another crucial feature developed by Solana. It is a parallelized transaction processing engine tasked with scaling the ecosystem horizontally across SSDs and GPUs. In simpler terms, this protocol allows several transactions to run on the identical blockchain.